MATERIAL MANAGEMENT SYSTEM (CHAPTER 12; PREFINALS)

Question 1

MMIS

Answer 1

MATERIAL MANAGEMENT INFORMATION SYSTEM

Question 2

used to manage functions like purchasing, accounting, inventory management, and patient supply charges

Answer 2

MATERIAL MANAGEMENT INFORMATION SYSTEM

Question 3

-first step in the process of purchasing
-used to identify a need for an item
-a document made by a user to notify the purchasing department regarding needed items and services

Answer 3

PURCHASE REQUEST

Question 4

allows one to track the vendor quotations for items

Answer 4

PURCHASE QUOTATION DOCUMENT

Question 5

one of the biggest expenses for most medical institutions

Answer 5

INVENTORY

Question 6

plays an important part in refining the quality of healthcare services

Answer 6

INVENTORY CONTROL

Question 7

4 strategies to improve inventory control

Answer 7

1. MAKING SURE SHIPPERS ARE ACCURATE
2. ALIGNMENT WITH SALES PROJECTIONS
3. COMPLIANCE WITH REGULATIONS
4. ESTABLISHING BUYING CYCLES

Question 8

used for maintenance of the attributes of an inventory item

Answer 8

ITEM TAB

Question 9

specifies inventory levels across all warehouses

Answer 9

ITEM AVAILABILITY

Question 10

RE-ORDER LEVEL

Answer 10

minimum quantity of an item that a company has in stock

Question 11

MIN/MAX

Answer 11

basic re-ordering method implemented in many ERPs

Question 12

MIN value

Answer 12

representative of a stock level that prompts a re-order

Question 13

MAX value

Answer 13

representative of a new targeted stock level that follows the re-order

Question 14

main difference of Min and Max

Answer 14

ECONOMIC ORDER QUANTITY (EOQ)

Question 15

starting point of a sale or purchase process; lead to establishing a connection with the right vendor/supplier

Answer 15

ENQUIRIES

Question 16

consist of various pieces of vital information of a requirement towards a sale/purchase; state important information such as price, delivery items, delivery details, payment terms, taxation

Answer 16

QUOTATIONS

Question 17

stated intention, either spoken or written

Answer 17

ORDER

Question 18

intention to buy

Answer 18

PURCHASE ORDER

Question 19

intention to sell

Answer 19

SALES ORDER

Question 20

also called “bill”

Answer 20

INVOICE

Question 21

a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices; indicates sale transaction only

Answer 21

INVOICES/BILL

Question 22

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

Answer 22

DOCUMENTS

Question 23

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

Answer 23

PURCHASE QUOTATIONS

Question 24

qualities of a preferred vendor

Answer 24

1) ON-TIME PERFORMANCE
2) RESONABLE COSTS
3) HIGH QUALITY OF PRODUCTS AND SERVICES
4) FULLY LICENSED, BONDED, AND INSURED
5) GOOD BUSINESS PRACTICES

Question 25

also known as Purchase Request

Answer 25

PURCHASE REQUISITION

Question 26

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

Answer 26

PURCHASE REQUEST/PURCHASE REQUISITION

Question 27

document which records a business transaction between the buyer and the seller

Answer 27

PURCHASE ORDER

Question 28

basic elements in a simple purchase order

Answer 28

1) BUYER 2) SELLER 3) ORDER NUMBER 4) ITEM DESCRIPTION 5) SHIPPING ADDRESS 6) SHIPPING DATE 7) BILLING ADDRESS 8) SIGNATURE 9) ORDER DATE

Question 29

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

Answer 29

ORIGINATOR

Question 30

where the initial request is immediately sent when the approval process is launched

Answer 30

MESSAGES/ALERTS OVERVIEW

Question 31

policies for the receipt and inspection of goods

Answer 31

1) SIGNING FOR DELIVERIES 2) REFUSING DELIVERY 3) RECORD RETENTION 4)INSPECTING A SHIPMENT 5) PARTIAL DELIVERIES 6) TRACKING OF GOODS

Question 32

the person receiving the product should sign the receiving documents provided by the supplier or shipping company

Answer 32

SIGNING FOR DELIVERIES

Question 33

departments should refuse to accept shipments if they are unable to confirm that the order was placed by their department

Answer 33

REFUSING DELIVERY

Question 34

takes physical possession and legal ownership of the shipment

Answer 34

RECEIVING DEPARTMENT

Question 35

should be contacted by the departments whenever a purchase is received as a partial delivery without acknowledgement or notification from the supplier

Answer 35

PURCHASING AGENT

Question 36

when managed by this, goods can be easily tracked/traced

Answer 36

SERIAL/BATCH

Question 37

temporary movement

Answer 37

RETURNABLE GATE PASS

Question 38

permanent movement

Answer 38

NON-RETURNABLE GATE PASS

Question 39

expired food and medicine may be sold to other parties at a lower cost

Answer 39

EXPIRED STOCK/INVENTORY

Question 40

when undecided about how to handle defective goods, whether to be sold as scrap, reworked, returned, or used as it is, a quarantine location or warehouse can be used to temporarily house until final decision

Answer 40

QUARANTINE STOCK/INVENTORY

Question 41

percent of hospital charges that are actually attributable to diagnostics, drugs, and consumables

Answer 41

30 TO 50%

Question 42

percent for doctors

Answer 42

10 TO 20%

Question 43

inventory items are sold in the order they are purchased; most common technique

Answer 43

FIRST IN, FIRST OUT (FIFO)

Question 44

last to enter the system are sold first; most common among non-perishable items

Answer 44

LAST IN, FIRST OUT (LIFO)

Question 45

materials are sold based on the date they should be consumed, regardless of when it was purchased

Answer 45

FIRST EXPIRED, FIRST OUT (FEFO)

Question 46

taxes that can be usually processed while posting documents

Answer 46

1) TAX ON SALES AND PURCHASES 2) ADDITIONAL TAXES LIKE VAT 3) SALES AND USE TAX (USA) 4) WITHHOLDING TAX (INCOME TAX IN INDIA)

Question 47

process where a business physically counts its entire inventory

Answer 47

INVENTORY COUNT