LAB MANAGEMENT Flashcards
LOGISTICS
what is supply chain management
Is the handling of the entire production flow of goods
why is supply chain management important
It maximizes quality, delivery, customer experience and profitability
Mention logistics terms and concepts
- minimum level
- Lead time
- Rate of consumption
- Re-ordering level
- Maximum level
- Danger level
- Average level
What are the purposes of a logistics system
- To ensure that all is in the right condition
- Customers are abler to receive the products they need and receive quality treatment to the right place
- When they visit a service delivery point at the right time (SDP) or visited a community based distribution (CBD) agent
- Ensures the system is of the right cost
- Ensures that logistics six rights are fulfilled
What are the six rights of logistics in malawi system
- the right product
- In the right condition
- In the right condition
- To the right place
- At the right time
- For the right cost
Which activities form a logistics cycle
- procurement
- Transport and delivery
- Warehousing- receipt and storage
- Redistribution and reverse logistics
- Customer service
Define procurement
Means sourcing materials required to meet the demands of a business
what are the materials included in procurement process
- Raw materials for production or redistribution
- Finished products for redistribution
What details does procurement require on every purchase order
- Name and address of the buyer
- Name and address of the seller
- Description of goods being ordered
- Quantity of goods
- The average price of each
- Delivery details
- Payment term/method
- Purchase order
What is the next step after procurement
Transport and delivery (can be arranged by the seller or buyer depending on pre-agreed trading terms)
What step follows after transport
warehousing
what are dry warehouses used for
Are use to store goods that do not deteriorate even in extreme temperatures
what happens to the goods in the warehouse
have to be received
identified accurately
stored as inventory of the buyer
What are temperature controlled warehouses used for
are used to store perishable items, pharmaceutical drugs and even certain types of electronics
what step follows after warehousing
Redistribution and reverse logistics
what is reverse logistics comprised of
It is comprised of the sector of supply chain that process anything returning inward through the supply chain or travelling backward through the supply chain. hence the name reverse logistics
what step follows after redistribution and reverse logistics
Customer service
what is involved in customer service
Transportation services
On time delivery
Define minimum stock level
Is the quantity which must be maintained in hand at all times
What happens if the stock are less than the minimum level
The work will stop due to shortage of materials
What factors are taken into account when deciding minimum stock level
- Lead time: means the time taken to process the new order and executing it
- Rate of consumption: It is the average consumption of materials in the industry
How is the rate of consumption decided
On the basis of past experience and production plans
formular for minimum stock level
Re-ordering level-(normal consumption X normal reorder period)
define re-order level
Level at which fresh order is sent to produce materials again
when is re-ordering done
before the materials reach minimum stock level. (re-order level is fixed between minimum level and maximum level)
formular for re-order level
Maximum consumption rate X maximum reorder period
or
Reordering level = minimum stock lvl x (Avg consumption x Avg lead time)
formular for maximum stock level
re-ordering level + reordering quantity - (minimum consumption X Minimum reordering period period)
From the following information, calculate minimum stock level, maximum stock level and re-ordering level:
1. Maximum Consumption = 200 units per day
2. Minimum Consumption = 120 units per day
3. Normal Consumption =160 units per day
4. Reorder period = 10-15 days
5. Reorder quantity = 1,600 units
6. Normal reorder period = 10 days.
Reordering Level = Maximum Consumption x Maximum Reorder period
= 200 units X 15 = 3,000 units
Minimum Stock Value = Reordering Level – (Normal Consumption x Nominal Reordering Period)
= 3,000 – (160 X 10) = 3,000 – 1,600 = 1,400 units
Maximum Stock Level = Reordering Level + Reorder Quantity – (Minimum Consumption x minimum Reorder period)
= 3,000 + 1,600 – (120 X 10) = 3,000 + 1,600 – 1,200 = 3,400 units.
