LAB MANAGEMENT

Question 1

what is supply chain management

Answer 1

Is the handling of the entire production flow of goods

Question 2

why is supply chain management important

Answer 2

It maximizes quality, delivery, customer experience and profitability

Question 3

Mention logistics terms and concepts

Answer 3

1. minimum level
2. Lead time
3. Rate of consumption
4. Re-ordering level
5. Maximum level
6. Danger level
7. Average level

Question 4

What are the purposes of a logistics system

Answer 4

1. To ensure that all is in the right condition
2. Customers are abler to receive the products they need and receive quality treatment to the right place
3. When they visit a service delivery point at the right time (SDP) or visited a community based distribution (CBD) agent
4. Ensures the system is of the right cost
5. Ensures that logistics six rights are fulfilled

Question 5

What are the six rights of logistics in malawi system

Answer 5

1. the right product
2. In the right condition
3. In the right condition
4. To the right place
5. At the right time
6. For the right cost

Question 5

Which activities form a logistics cycle

Answer 5

1. procurement
2. Transport and delivery
3. Warehousing- receipt and storage
4. Redistribution and reverse logistics
5. Customer service

Question 6

Define procurement

Answer 6

Means sourcing materials required to meet the demands of a business

Question 6

what are the materials included in procurement process

Answer 6

1. Raw materials for production or redistribution
2. Finished products for redistribution

Question 7

What details does procurement require on every purchase order

Answer 7

1. Name and address of the buyer
2. Name and address of the seller
3. Description of goods being ordered
4. Quantity of goods
5. The average price of each
6. Delivery details
7. Payment term/method
8. Purchase order

Question 8

What is the next step after procurement

Answer 8

Transport and delivery (can be arranged by the seller or buyer depending on pre-agreed trading terms)

Question 9

What step follows after transport

Answer 9

warehousing

Question 9

what are dry warehouses used for

Answer 9

Are use to store goods that do not deteriorate even in extreme temperatures

Question 10

what happens to the goods in the warehouse

Answer 10

have to be received
identified accurately
stored as inventory of the buyer

Question 10

What are temperature controlled warehouses used for

Answer 10

are used to store perishable items, pharmaceutical drugs and even certain types of electronics

Question 10

what step follows after warehousing

Answer 10

Redistribution and reverse logistics

Question 11

what is reverse logistics comprised of

Answer 11

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

Question 11

what step follows after redistribution and reverse logistics

Answer 11

Customer service

Question 12

what is involved in customer service

Answer 12

Transportation services
On time delivery

Question 13

Define minimum stock level

Answer 13

Is the quantity which must be maintained in hand at all times

Question 14

What happens if the stock are less than the minimum level

Answer 14

The work will stop due to shortage of materials

Question 15

What factors are taken into account when deciding minimum stock level

Answer 15

1. Lead time: means the time taken to process the new order and executing it
2. Rate of consumption: It is the average consumption of materials in the industry

Question 16

How is the rate of consumption decided

Answer 16

On the basis of past experience and production plans

Question 17

formular for minimum stock level

Answer 17

Re-ordering level-(normal consumption X normal reorder period)

Question 18

define re-order level

Answer 18

Level at which fresh order is sent to produce materials again

Question 19

when is re-ordering done

Answer 19

before the materials reach minimum stock level. (re-order level is fixed between minimum level and maximum level)

Question 19

formular for re-order level

Answer 19

Maximum consumption rate X maximum reorder period
or
Reordering level = minimum stock lvl x (Avg consumption x Avg lead time)

Question 20

formular for maximum stock level

Answer 20

re-ordering level + reordering quantity - (minimum consumption X Minimum reordering period period)

Question 21

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.

Answer 21

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.