Lesson 12: Materials Management System

Question 1

It ensures that services are rendered successfully from one source to an end user.
Covers several areas of the hospital and could drastically affect the expenses of the medical institution.

Answer 1

Materials Management System

Question 2

Three components of purchasing

Answer 2

1. Purchase request
2. Purchase order
3. Receiving delivery

Question 3

Four components of inventory control

Answer 3

1. Ensuring shipment accuracy
2. Aligning with sales projections
3. Complying with regulations
4. Establishing buying cycles

Question 4

Ensuring that the received items are the ones ordered and the supplies are free from damages during transit

Answer 4

Ensuring shipment accuracy

Question 5

Prevents wastage, identify trends and ensure no excess inventory

Answer 5

Aligning with sales projections

Question 6

Health institution should be responsive to current trends and needs of the highly regulated health care industry. Serve the best interest of the patients.

Answer 6

Complying with regulations

Question 7

Ordering becomes manageable through the elimination of shortages and overages. Determine the trends and adjustments that can be made accordingly.

Answer 7

Establishing buying cycles

Question 8

Upper portion contains master information

“Item Tab” is used for maintenance of the attributes of an inventory item, such as product type, item class, item type, etc.

“Item Availability” form specifies inventory levels across all warehouses

Answer 8

Item Master Maintenance

Question 9

Items are damaged either upon receiving from the supplier or during the move from the source to another location.

Some suppliers allow returns of the said goods that have indents or the like, with a guarantee of replacement without any additional payments.

Damaged items are moved to another warehouse for them to be monitored.

Answer 9

Items indents and Issues

Question 10

Re-order level is the minimum quantity of an item that a company has in stock.

“Min” value is representative of a stock level that prompts a re-order, and the “Max” value is representative of a new targeted stock level that follows the re-order

Answer 10

Reorder Level and Minimum and maximum inventory Ordering

Question 11

EOQ?

Answer 11

Economic Order Quantity

Question 12

Start point of a sale or purchase process

Getting information from a vendor / supplier for the requirement at hand

Establishing a connection with the right vendor supplier in order to get a quotation, place the order and receive the requirements

Answer 12

Enquiries

Question 13

State important information such as price, delivery times, delivery details, payment terms, taxation etc.

Answer 13

Quotations

Question 14

Stated intention, either spoken or written, to engage in a commercial transaction for specific products or services

Buyer’s point of view expresses the intention to buy and is called a purchase order

Seller’s point of view intention to sell and is referred to as a sales order

Orders become a contract between the buyer and seller

Answer 14

Order

Question 15

is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer

Indicates the sale transaction only

Answer 15

Invoice

Question 16

need to be created in order to enable a quotation, order, invoice, tax forms etc. to be used

are statutory requirements to enable smooth transition of the processes involved in successfully completing a sale / purchase

Answer 16

Documents

Question 17

Document for requesting prices and delivery information from a vendor before the purchase order.

Answer 17

Purchase quotations

Question 18

Companies maintain a list of _______ from whom inventory items are purchased.

Answer 18

Preferred vendors

Question 19

Document that notifies the purchasing department that certain items or services need to be replenished

Answer 19

Purchase request

Question 20

Legally binding contract which shows that the seller has already accepted the order issued by the buyer

Answer 20

Purchase orders

Question 21

The person who creates the document, either a purchase request or order, is the originato

Answer 21

Approval process

Question 22

Policies that should be followed for the proper receipt and inspection of goods

Answer 22

Receiving and Tracking Items

Question 23

Inspect the delivered items before signing the receiving document and packaging list

Answer 23

Signing for deliveries

Question 24

Refuse to accept any shipment if the packaging appears to be damages or does not have a corresponding purchase order

Answer 24

Refusing delivery

Question 25

Ensure that there is proper documentation

Answer 25

Record retention

Question 26

Inspect the goods to ensure

Answer 26

Inspecting a shipment

Question 27

When items are delivered partially without proper notification, the receiving personal should advice for approval or further instructions

Answer 27

Partial deliveries

Question 28

Easily tracked when they are managed by serial number or by batch

Answer 28

Tracking of goods

Question 29

Defective or substandard quality good, incorrect order delivery, and deteriorated purchased and sold items

These lead to purchase returns

When purchased goods are returned, the materials management system updates inventory levels to reflect the decrease in quantity

Answer 29

Purchase returns along with returnable/non returnable gate pass

Question 30

Consignment the vendor or consignor issues materials to the receiver or consignee, and these materials are stored on the consignee’s premises.

The vendor maintains legal ownership until such materials are removed from consignment stores.

The invoice is due at predetermined intervals, such as monthly.

Customers can also arrange to take over ownership of the remaining consignment material after a certain period of time

Answer 30

Consignment stock receipt, consumption, and regularization

Question 31

Upon reaching expiration dates, some goods can no longer be utilized.

Can be sold to others at lower costs

The amount that reduces inventory in your records is recognized as a loss that is a reduction in profit

Answer 31

Expired stock and quarantine

Question 32

Inventory is put into quarantine if initially rejected during > Production, upon completion of an operation, when specified as Move Rejected End Item to Quarantine.

Inbound inspection upon receipt of:

Manufactured end items Purchased items. Sold items on sales return orders Enterprise Planning distribution orders Outbound inspection upon issue of: Materials to production

Answer 32

Quarantine stock or inventory

Question 33

30 to 50% of hospital charges are actually attributable to diagnostics, drugs, and consumables, and doctors get only between 10 to 20%

drugs and consumables take up the bulk of expenditure

Material Management Systems become advantageous > provides an overview of the entire institution’s purchasing and inventory control processes, decision-makers can have more reliable information, and can monitor the bigger picture

Answer 33

Drugs and consumable issues and returns to patients

Question 34

Sold based on the order they are purchased. This is the most common technique

Answer 34

First In, First Out (FIFO)

Question 35

Last item to enter the system are sold first

Common among non-perishable items

Answer 35

Last In, First Out (LIFO)

Question 36

Sold based on the dates they should be consumed, regardless of when they were purchased

Answer 36

First Expired, First Out (FEFO)

Question 37

Material Management Systems usually allow tax rates to be defined internally via tax codes, or imported from an external source

Answer 37

Generic Tax Formula Configurations

Question 38

An inventory count is a process where a business physically counts its entire inventory

Inventory services provide labor and automation to quickly count inventory and minimize shutdown time

Inventory control system software can speed the physical inventory process

A perpetual inventory system tracks the receipt and use of inventory, and calculates the quantity on hand

Cycle counting, an alternative to physical inventory, may be less disruptive

Barcode and RFID are supplementary technologies that can be used in combination with the Material Management System in order to have more accurate and less burdensome inventory counts

Answer 38

Periodic Physical Stock Taking and Adjustments with Tracking

Question 39

in electronic or written format

to represent an aggregated database of clinical information

It usually houses a multitude of laboratory results, diagnostic reports, and various clinical documentations

Answer 39

Clinical Data Repositories