Material Management System Flashcards
This system can be used to manage functions like purchasing, accounting, inventory management, and patient supply charges.
Material Management Information System (MMIS)
MCQ:
- It can be used as a first step in the process of purchasing.
- This is used internally to identify a need for an item.
- It is a document that is made by a user to notify the purchasing department regarding needed items and services.
A. Purchase Request
B. Purchase Quotation
C. Purchase Order
Purchase Request
MCQ:
- It allows one to track the vendor quotations for items
A. Purchase Request
B. Purchase Quotation
C. Purchase Order
B. Purchase Quotation
In order to create multiple quotations, what would be purchasing used?
Purchase Quotation Wizard (SAP Business One)
State that inventory is one of the biggest expenses for most medical institutions.
plays an important role in refining the quality of healthcare services and different strategies could be employed to ensure efficiency.
Inventory Control
What are the FOUR strategies on how to improve inventory control within healthcare facilities by Johnston (2014)?
- Making sure shippers are accurate
- Alignment with sales projections
- Compliance with regulations
- Establishing buying cycles
MCQ:
- This is what is known as buying cycles
- Avoiding shortages and overshoot in supplies
- This strategy makes for proactive system rather than a reactive one
A. Making sure shippers are accurate
B. Alignment with sales projections
C. Compliance with regulations
D. Establishing buying cycles
D. Establishing buying cycles
MCQ:
- Most suppliers of medical products employ third-party shippers and ensure that the correct supplies reach the warehouse
- This tracking system has the ability to detect errors in filling orders
- It has a feature that can tell properly handled from mishandled medical supplies during transit
A. Making sure shippers are accurate
B. Alignment with sales projections
C. Compliance with regulations
D. Establishing buying cycles
A. Making sure shippers are accurate
MCQ:
- This is where inventory control plays its part as it aids in establishing a more efficient system in a medical company
- This favor is NOT ONLY the healthcare providers but also their suppliers
- The effective inventory control system can significantly maintain responsiveness of the company and it will eliminate the probability of implementing bodies of regulations
A. Making sure shippers are accurate
B. Alignment with sales projections
C. Compliance with regulations
D. Establishing buying cycles
C. Compliance with regulations
MCQ:
- Medical fields are highly vulnerable to inaccuracy
- Keeping a record of inventory against actual sales is necessary
- Waste is averted, monetary expenditure is well-managed, and medical companies are enabled to identify never-before-seen trends
A. Making sure shippers are accurate
B. Alignment with sales projections
C. Compliance with regulations
D. Establishing buying cycles
B. Alignment with sales projections
True or False
In the Material Management System, the INVENTORY ITEM MAINTENANCE screen has many sections.
True
It is used for the maintenance of the attributes of an inventory item such as product type, item class, item type, etc.
Item tab
It is formed specifies inventory levels across all warehouses.
Item availability
This applies to the distribution and retail industries where the goods for sale are fast-moving.
Item indents and issues
It is the minimum quantity of an item that a company has in stock.
Re-order level
It is a basic re-ordering method implemented in many ERPs and other inventory management software.
Min/Max inventory ordering method
The value is representative of a stock level that follows the re-order.
Min
The value is representative of a new target interpreted as the Economic Order Quantity (EOQ).
Max
It is the starting point of a sale or purchase process.
Lead to getting information from a vendor/supplier for the requirement at hand.
Lead to establishing a connection with the right vendor/supplier in order to get a quotation, place an order, and receive the requirements.
Enquiries
It consists of various pieces of vital information of a requirement towards a sale/purchase.
It consists of important information such as prices, delivery times, delivery details, payment terms, taxation, etc.
Quotations
Fill in the blanks:
In business or commerce, an __ is a stated intention, either spoken or written, to engage in a commercial transaction for specific products or services.
Order
Fill in the blanks:
From a buyer’s point of view, it expresses the intention to buy and is called a ___
Purchase order
Fill in the blanks:
From a seller’s point of view the buyer expresses the intention to sell and is referred as ___
Sales order
It 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.
Invoice or bill
For any purchase or sale to take place, this needs to be created in order to enable a quotation, order, invoice, tax forms, etc.
Documents
It is a document for requesting prices and delivery information from a vendor before the purchase order.
Purchase quotation
The several qualities of preferred vendors that a company looks for are;
- On-time performance
- Reasonable cost
- High quality products and services
- Fully licensed, bonded, and insured
- Good business practices
It is a document that notifies the purchasing department certain items or services need to be replenished.
Purchase requests or Purchase requisitions
It is a document that records a business transaction between the buyer and the seller.
Purchase order
Fill in the blanks:
The person who creates the document, either a purchase request or an order, is the?
Originator
This document is temporarily saved as a draft.
Approval process
It is immediately sent to the first approval stage when the approval process is launched.
Internal request
Fill in the blanks:
This request is received in ___ and the approver can access the document.
Message/Alerts Overview Window
What are the FIVE documentation needed in the Material Management Process by Webrino (2018)?
- Enquiries
- Quotations
- Orders
- Invoice/Bill
- Documents
What are the SIX policies for the receipt and inspection of goods, by York College (2017)?
- Signing for deliveries
- Refusing delivery
- Record Retention
- Inspecting a shipment
- Partial deliveries
- Tracking of goods
This is only for temporary movement.
Returnable Gate Pass
This is only for permanent movement.
Non-returnable Gate Pass
- Reaching their expiration dates, some goods, such as foods and medicines, can no longer be utilized
- It may be sold to other parties at a lower cost
Expired Stock Inventory
- About how to handle defective goods
- To be sold as scrap, reworked, returned, or used
- Warehouse can be used temporarily
Quarantine Stock Inventory
Under Quarantine Stock Inventory, the inbound inspection upon receipt by?
- Manufactured end items
- Purchase items
- Sold items or sales return orders
- Enterprise planning distribution
Under Quarantine Stock Inventory, the outbound inspection upon receipt by?
Material to production
MCQ:
Materials are sold based on the date they should be consumed, regardless of when it was purchased.
A. First In, First Out (FIFO)
B. Last In, First Out (LIFO)
C. First Expired, First Out (FEFO)
D. None of the above
C. First Expired, First Out (FEFO)
MCQ:
Inventory items are sold in the order they are purchased. This is the most common technique.
A. First In, First Out (FIFO)
B. Last In, First Out (LIFO)
C. First Expired, First Out (FEFO)
D. None of the above
A. First In, First Out (FIFO)
MCQ:
Last to enter the system are sold first. This is common among non-perishable items like petroleum, minerals, and metals.
A. First In, First Out (FIFO)
B. Last In, First Out (LIFO)
C. First Expired, First Out (FEFO)
D. None of the above
B. Last In, First Out (LIFO)
What are the THREE issue methods that are currently used in the healthcare industry?
- First In, First Out (FIFO)
- Last In, First Out (LIFO)
- First Expired, First Out (FEFO)
MMS usually allows tax rates to be defined internally via tax codes, or imported from an external source.
General Tax Formula Configuration
The following taxes can usually be processed while posting documents;
- Tax on sales and purchase
- Additional taxes like VAT
- Sales and use tax, as in USA
- Withholding tax, like income tax in India
It is the process where a business physically counts its entire inventory.
Inventory count
MCQ:
Businesses may use several different tactics to minimize the disruption caused by physical inventory;
A. Inventory services provide labor and automation to quickly count inventory and minimize shutdown time.
B. Inventory control system software can speed the the physical inventory process.
C. A perpetual system tracks the receipts and use of inventory and calculates the quality on hand.
D. Cycle counting, an alternative to physical inventory, may be less disruptive
E. All of the above
E. All of the above
Which of the following is not associated with the word “purchase”?
A. Buy
B. Obtain
C. Release
D. Secure
E. Procure
C. Release
___ is a formal statement setting out the estimated cost for a particular job, product, or service.
A. Enquiries
B. Quotation
C. Invoices
D. Orders
C. Invoices
It is the threshold value that indicates the level below which actual material stock items should not normally be allowed to fall.
A. Minimum level
B. Maximum level
C. Required level
D. Re-order level
D. Re-order level
It is stated intention, either spoken or written, to engage in a commercial transaction for a specific product or service.
A. Enquiries
B. Quotation
C. Invoices
D. Orders
D. Orders
It is the process of assessing and recording the of amount stock held by an entity or organization.
A. Stocktaking
B. Inventory adjustment
C. Inventory count
D. Physical stock
A. Stocktaking
