DECK 2

Question 1

Formal request from the distributors or manufactures for collection and return of any items that have quality defects of some sort.

Answer 1

Recall

Question 2

Distribution device used for downward movement of materials. Commonly used to remove laundry or trash on lower areas

Answer 2

Chutes

Question 3

Is an offer to purchase specific quantities of goods and services at specific price and delivered within specific period.

Answer 3

Purchase Order

Question 4

What is included in Purchase orders

Answer 4

terms and conditions

Question 5

• They can become a contractual, legally binding document if accepted by seller.
• Also a binding document when accepted by seller offer.

Answer 5

Purchase orders agreements

Question 6

Is for the automatic delivery of a specific amount of product on a regular, predetermined basis.

• Always has a start and end date, total amount, defined delivery dates and quantities
• Common use in Healthcare for procuring lab reagents.

Answer 6

Standing orders

Question 7

An agreement similar to Standing Order in that it is pre-negotiated but the vendor does not automatically ship.

• It is used for specific number of items at agreed upon price
• User department responsible for calling the vendor to ship quantities as needed.
• Designed to consolidate repetitive small purchases from a single supplier
• A form of an open account that is limited in terms in things that can be ordered, who can place orders, period for which it is to be open and total amount that can be ordered.

Answer 7

Blanket Orders

Question 8

Pre-agreed agreement with suppliers

• Less details than blanket orders
• No details on PO for goods
• May or may not include advantageous terms like discount off list or extended payment terms.
• Being replaced with the procurement card method.

Answer 8

Open Orders

Question 9

Important to articulate the actual service to point where you can objectively assess when the service has been completely and satisfactory been completed.
-Should include who or what department will sign off the work that is done.

Answer 9

Purchasing Services

Question 10

Like a credit card linked to the departmental general ledger and allows purchases of goods and services without requisitions or purchase order.

• Used for non-medical and non-contract purchases with no value add from purchasing.
• Can be individually customized to restrict types of purchases allowed and the dollar per transaction.

Answer 10

Procurement Card

Question 11

Products housed in facility owned by vendor and purchased only when used.

Answer 11

Consignment inventory

Question 12

Same item stored in two or more locations, by reducing overall inventory level this type of strategy is feasible.

Answer 12

Consolidation strategy

Question 13

Products expensed on receipt or issued from asset inventory prior to use.

Answer 13

Unofficial Inventory

Question 14

Products that are assets on balance sheet and expensed to the requesting department only when issued.

Answer 14

Official Inventory

Question 15

3 ways of classifying inventory

Answer 15

Official, Unofficial, Consignment

Question 16

Difference between a physical count and the MMIS on-hand quantity.

Answer 16

Variance

Question 17

Lost inventory, a write down of inventory value. Also called negative variance.

Answer 17

Shrinkage

Question 18

used to determine the present value of cash receipts. Also called discount rate.

Answer 18

Capitalization rate

Question 19

Stock reduced by using inventory performance monitoring, aimed at items that are moving fast and substantial demand.

Answer 19

Inventory Reduction Strategy

Question 20

addition to the agreement that stipulates many conditions such as warranty and liability
-Two important terms are freight terms and payment terms.

Answer 20

Purchasing terms