Module 2 Flashcards
1
Q
Physical count of properties located within a unit command. This involves actual count of stocks and the comparison of the results with the recorded balances.
A
INVENTORY
2
Q
TRUE or FALSE
Inventory involves the following:
a. physical count of materials on hand
b. verification of stock record balances
c. investigation and disclosure
d. adjustment of stocks and financial records
e. analysis of cause of inventory discrepancies
A
TRUE
3
Q
Physical counting of assets in the storage.
A
INVENTORY
4
Q
Everything that has value.
A
ASSETS
5
Q
Refers to the place where supplies are kept on storage.
A
LOCATION
6
Q
Provides specific/exact location of an item place on storage.
A
LOCATION NUMBER
7
Q
Given name or description of an item.
A
NOMENCLATURE
8
Q
13-digit numbers which is unique to the item which it identifies and thus identifies it from every other items.
A
NATIONAL STOCK NUMBER (NSN)
9
Q
Series of letters of numbers used as an identifying code for an item.
A
PART NUMBER
10
Q
Refers to the actual number of item on stock.
A
QUANTITY
11
Q
Specified measurement as data which serve as the controlling parameter in the provisioning of supplies.
Example:
EA - each
HD - hundred
CN - cartons
BX - boxes
A
UNIT OF ISSUE (U/I)
12
Q
Used to identify serviceable items.
A
YELLOW TAG
13
Q
Used to identify reparable items.
A
GREEN TAG
14
Q
Used to identify condemned/disposable items.
A
RED TAG
15
Q
TRUE or FALSE
Reasons for Inventory:
- Demand forecast error
- Unpredictable or late deliveries from suppliers
- Strategic stocking
- Minimum supplier order quantity
- Supplier delivery interval
- Stocking methodology
- Reorder interval and quantity
- Purchase price advantage
- Lead-times offered to customers are shorter than supplier lead-times
- Minimization of delivery costs
- Pipeline Inventory
- Anticipation or precautionary stocks
- Meeting changing demand with flat capacity
A
TRUE
16
Q
An inventory consist of two (2) basic elements
A
- the actual property in stock; and
- the records indicating the quantity of each item.
17
Q
The purpose of inventory is to correct ________ in processing and storage operations. This permits item and record balances to agree with actual quantities of stock in hand or in use.
A
ERRORS
18
Q
________ give management a measurement of accuracy of accountable records, warehouse location and stocks identification.
A
INVENTORIES
19
Q
________ may be defined as “an itemized list or count of all or any designated property on hand at a given time; the property comprising an ________.”
A
INVENTORY
20
Q
________ should be taken of all assets, both in storage and out of warehouse regardless of physical location.
A
INVENTORY
21
Q
TRUE or FALSE
Warehouse personnel or special inventory personnel may be utilized as inventory counters at the discretion of the Supply Officer.
A
TRUE
22
Q
6 Functions of Integrated Inventory Management
A
- Cataloging
- Requirements Planning
- Procurement Direction
- Distribution Management
- Maintenance Management
- Materiel Utilization and Disposal
23
Q
[Functions of Integrated Inventory Management]
The inventory manager must insure that the items are properly cataloged and recorded in appropriate working file sections of the Master Data File so that the customer units will know what the item is, what the item does, what stock number to use, what the unit cost is, and where to submit his request for the item.
A
CATALOGING
24
Q
[Functions of Integrated Inventory Management]
The inventory manager is responsible for the planning and computing of peace and mobilization requirements for assigned items. He is also responsible for computing military requirements based on history of demand and maintaining stockage levels.
A
REQUIREMENTS PLANNING
25
[Functions of Integrated Inventory Management]
The inventory manager has the authority to direct procurement to be accomplished, subject to limitations of approved programs and direction from higher authority. Close coordination between the inventory manager and procurement personnel is essential.
PROCUREMENT DIRECTION
26
[Functions of Integrated Inventory Management]
The inventory controls stocks, which are storage due in or due out for the entire depot distribution system on both quantitative and monetary basis with the exception of selected items. This ________ function involves the control of inventories to insure that they are adequate, but not excessive, and that they are strategically located so as to be responsive to customer demands.
DISTRIBUTION MANAGEMENT
27
[Functions of Integrated Inventory Management]
The inventory manager has the authority to require that items be overhauled or rebuilt in computing requirement. All assets, serviceable, economically reparable and unserviceable, must be considered. The users must be brought into the planning process to insure the timely return of unserviceable assets.
MAINTENANCE MANAGEMENT
28
[Functions of Integrated Inventory Management]
The inventory manager must insure that excess or obsolete stocks are removed from the system. He is responsible for the declaration of excess items and when the item has been declared excess to the government, takes further action to effect disposal. He must conscientiously participate in the materiel utilization program to ensure proper utilization of excess stocks prior to disposal.
MATERIEL UTILIZATION AND DISPOSAL
29
Inventory Management (IM) Requirements
1. A ________ to keep track of the inventory on hand and on order.
2. A reliable forecast of ________.
3. Knowledge of ________ and its variability.
4. Reasonable ________ of inventory holding costs, ordering costs, and shortage costs.
5. A classification ________ for inventory items.
1. system
2. demand
3. lead times
4. estimates
5. system
30
________ procedures provide positive control of the flow of materials and documentation. This control include issuance directive, receipts, adjustments and catalog data changes.
Physical inventory
31
TRUE or FALSE
Mutually agreeable cutoff dates must be established between storage and accountable activities for inventory actions.
TRUE
32
TRUE or FALSE
Indicate “Do Not Inventory” on items not included in inventory count.
TRUE
33
________ of property is an important function in taking an inventory to achieve optimum effectiveness of available supplies and to maintain protection against uncertainty.
Counting
34
TRUE or FALSE
The purpose of location surveys, inventory and adjustment is to
A. Determine the location and condition of material
B. Determine the quantity of material on hand
C. Adjust stock record to show actual quantities
D. Determine the cause for discrepancies when they are found
E. Correct the cause of discrepancies
TRUE
35
Materials which requires protection in the interest of national security.
CLASSIFIED ITEM
36
Materials which requires high degree protection and control, e.g., narcotics, precious metals, etc.
SENSITIVE ITEMS
37
Materials having a ready resale value highly and technical or hazardous in nature.
PILFERABLE ITEMS
38
An inventory system where counts are performed continuously, often eliminating the needs for an annual overall inventory.
CYCLE INVENTORY
39
“to gain better control over the inventory”
GOAL
40
An inventory accuracy audit technique where inventory is counted on a cyclic schedule rather than once a year.
CYCLE COUNTING
41
“ to identify items in error, thus triggering research, identification, and elimination of the cause of errors. ”
PURPOSE
42
What are the causes of cycle count discrepancies?
- Wrong quantity taken to fill an order
- Wrong product taken to fill an order
- Products filled from the wrong stocking location
- Stock put away in the wrong bin location
- Units of measure confused or misrepresented
- Data entry errors
- Damaged material mixed with good stock
- Material movement not properly recorded
43
conducted using the close warehouse method. All items within the selected parameter are inventoried. The warehouse area being inventoried is closed except for emergency issues. All backlog transactions are processed immediately upon completion of an inventory.
COMPLETE INVENTORY
44
developed to provide better use of manpower and time. This method serves the same purpose as a complete inventory, however, only a random sample of items need to be counted. If the inventory fails the acceptable error rate, a complete inventory is conducted.
SAMPLE INVENTORY
45
conducted by line item on an as-required basis. Main reason is to correct out-of-balance condition resulting in warehouse refusal.
SPECIAL INVENTORY
46
usually performed only upon written request. Conducted discrepancies that cannot be resolved by property custodian.
In-Use/In-Place Equipment Inventory
47
6 INVENTORY ACTIONS RELATED TO PHYSICAL COUNT OF MATERIAL
1. Principles of Inventory Control
2. Inventory Planning
3. Inventory Training
4. Preparation of Material for Inventory
5. Inventory and Adjustment
6. Controlled Item Inventory
48
4 TYPES OF INVENTORY
1. Complete Inventory
2. Sample Inventory
3. Special Inventory
4. In-Use/In-Place Equipment Inventory
49
2 METHODS OF INVENTORY
1. CLOSED WAREHOUSE METHOD
| 2. OPEN WAREHOUSE METHOD
50
is a method whereby the warehouse, or sections thereof, housing the property to be inventoried is closed to all receipt and issue transactions, except emergency issue transactions, while the physical count is being made.
CLOSED WAREHOUSE METHOD
51
is a method whereby normal receipts and issue transactions continue during the course of inventory.
OPEN WAREHOUSE METHOD
52
4 FREQUENCY OF INVENTORY (By Schedule)
1. Quarterly Inventory
2. Semi-Annually Inventory
3. Annual Inventory
4. As-Required Inventory
53
covers out-of-warehouse investment assets, in-warehouse investment assets.
Quarterly Inventory
54
conducted for classified and sensitive items.
Semi-Annually Inventory
55
conducted for nuclear ordnance, commodity management equipment and pilferage type items
Annual Inventory
56
inventory of all items added to the critical item management.
As-Required Inventory
57
The key to any successful inventory is in the proper ________ by all section and persons concerned.
preparation
58
establish by fiscal year to ensure that all assigned locations and details are inventoried at the correct frequency.
SCHEDULE
59
is the day immediately before the inventory count begins. The opening record balance on which the ________ is the balance on which the inventory count is compared.
Inventory Deadline Date
60
conducted before the inventory deadline date to identify and correct discrepancies that would affect the inventory.
Pre-Inventory Survey
61
Process all transactions at least ________ day prior to the inventory deadline date.
one (1)
62
3 PROBLEMS IN INVENTORY
1. OVERAGES
2. SHORTAGES
3. REFUSAL
63
Occur when more assets are found in the warehouse than what is reflected on the accountable cards.
OVERAGES
64
occur when fewer assets are found in the warehouse than are reflected on the accountable cards.
SHORTAGES
65
occur when no asset could be found in a given location but accountable records reflects on stock.
REFUSAL
66
2 PURPOSES OF INVENTORY
1. CORRECT ERRORS
| 2. VALIDATE THE ACCOUNT
67
[PURPOSE OF INVENTORY]
Improve the usefulness of property accounting records which is a function of accurate balances.
CORRECT ERRORS
68
[PURPOSE OF INVENTORY]
Establish credibility of the stock record account to public law and recognized good business practices.
VALIDATE THE ACCOUNT
69
The performance of physical functions covering receipt, storage, and issue of supplies.
Warehousing
70
The process or act of positioning and placing items (cartons, packages, pallet unit loads, etc.) in area set aside for holding these items or staging these items for shipment.
Warehousing
71
is the holding and keeping of supplies for future use, ready for issue at any given time.
Storage
72
includes preparing and planning for supplies that will arrive at the location in the future, the processing and handling of supplies to the customer.
Storage
73
4 Objectives of Storage and Warehousing
1. Full utilization of space
2. Savings on time and labor
3. Supply readiness and accessibility
4. Maximum protection
74
[OBJECTIVES OF STORAGE AND WAREHOUSING]
every available foot of storage space should be put to use vertically and horizontally.
Full utilization of space
75
[OBJECTIVES OF STORAGE AND WAREHOUSING]
unexpected volume of shipments can be handled by a lean team of warehouse personnel at less operational time when supplies are stored properly and efficiently.
Savings on time and labor
76
[OBJECTIVES OF STORAGE AND WAREHOUSING]
supplies are stored in an efficient and proper manner for ease in selection and shipment with minimum amount of effort and cost involved. Each SKU location properly accessible.
Supply readiness and accessibility
77
[OBJECTIVES OF STORAGE AND WAREHOUSING]
proper protection of supplies from pilferage, the elements, fire, extremes in temperature, odor and lights.
Maximum protection
78
3 BASIC RESOURCES IN WAREHOUSING
1. SPACE
2. MANPOWER
3. MATERIAL HANDLING EQUIPMENT
79
This pertains to the various types of areas or structures either covered or open-type utilized for the purpose of storing and protection of supplies.
SPACE
80
________ is one of the primary resources of a supply installation. It is also the greatest item of expense.
MANPOWER
81
________ is defined as any stationary or mobile equipment, powered, mechanical, or hand operated, that is used for the physical handling, storage, and movement of supplies.
MATERIAL HANDLING EQUIPMENT
82
3 CLASSES OF STORAGE
1. FAST-MOVING
2. SLOW-MOVING
3. NON-MOVING or DORMANT
83
Classified as stocks issued regularly and expected to be used within a very short period due to its turnover.
FAST-MOVING
84
classified as stocks issued at intervals. Mostly monthly, quarterly or annually.
SLOW-MOVING
85
stocks classified as either for disposal or scrappage.
NON-MOVING or DORMANT
86
In warehousing, describes the method of rotating inventory to use oldest product first.
FIFO (First In First Out)
87
4 FUNCTIONS OF STORAGE
1. RECEIVING
2. STORING
3. SHIPPING
4. OTHER RELATED FUNCTION
88
The function encompassing the physical receipt of material, the inspection of the incoming shipment for conformance with the purchase order (quantity and damage), the identification of the delivery, and the preparation of receiving reports.
RECEIVING
89
To establish or verifying the exact or true identity of the materials e.g., type, FSN or other data concerning a supply item, during actual acceptance of certain product or component.
IDENTIFYING
90
the actual spot check of incoming shipment to ensure the contract requirements are met, without any damage to the item and that proper packaging and handling has been applied.
INSPECTING
91
Evaluating or determining an item as to their physical condition and degree of serviceability through the use of condition codes.
CLASSIFYING
92
The taking of supplies to pre-determined locations for storage using the planograph and stock locator system.
STORING
93
Applying protective measures including cleaning, drying, preservative “materials, barrier materials, cushioning, and containers when necessary.
PRESERVING
94
A physical count performed to determine the on hand quantity of an item or group of items.
INVENTORY
95
The function that performs tasks for the outgoing shipment of parts, components, and products. It includes packaging, marking, weighing, and loading for shipment.
SHIPPING
96
TRUE or FALSE
Responsibility of every warehouse personnel to establish and maintain an effective safety programs as an integral part of the storage control system.
TRUE
97
Good ________ includes proper use of storage space and material handling equipment, proper grouping of activities for a straight line flow and the attaining of maximum productivity of all personnel.
MANAGEMENT
98
4 IMPORTANT TECHNIQUES OF GOOD STORAGE MANAGEMENT
1. PLANNING
2. DIRECTING
3. COORDINATING
4. CONTROLLING
99
Is an inventory-tracking system that allow you to assign locations to your inventory to facilitate greater tracking and the ability to store product randomly.
Locator System
100
The ________ is a Form used in the Supply and/or Property Division/ unit for each type of supplies to record all receipts and issues made. It shall be maintained by fund cluster.
STOCK CARD (SC)
101
minimum quantity of stocks which signals the need to re-order the item
Re-order Point
102
the difference between the ‘Receipt’ and ‘Issue’ columns which shall be equal to the quantity of supplies on hand/stock at the Supply and/or Property Division/Unit
Balance-Qty
103
The agency/entity shall conduct physical count of inventories every ________. The ________ physical inventory of supplies shall be reconciled with the SLCs and controlling accounts and Supply and/or Property records. Any discrepancies shall be immediately verified and adjusted.
semester
| semestral
104
A storage area floor plan layout or ________ is used as an excellent management tool for space control which enables planning for effective use of space.
planographs
105
TRUE or FALSE
Serviceable and economically repairable supplies and equipment shall be stored in a warehouse if space is available. When warehouse space is unavailable, items may be placed in shed storage and as a last priority, in open storage.
TRUE
106
TRUE or FALSE
ALL SUPPLIES SHALL BE PROPERLY IDENTIFIED, CLASSIFIED BY CONDITION CODE AND PROPERLY MARKED FOR STORAGE. USE AVAILABLE STORAGE AIDS TO MAXIMIZE STORAGE SPACE AND FACILITIES ISSUANCE OF SUPPLIES
TRUE
107
The placing or keeping of item in an environment to prevent deterioration or damage and to facilitate handling in and out.
STORAGE
108
4 DIFFERENT STORAGE SPACE
1. COVERED STORAGE SPACE
2. OPEN STORAGE SPACE
3. OPEN IMPROVED STORAGE SPACE
4. OPEN UNIMPROVED STORAGE SPACE
109
7 DIFFERENT SPECIAL PURPOSE WAREHOUSE
1. CONTROLLED HUMIDITY WAREHOUSE
2. REFRIGERATED WAREHOUSE
3. FLAMMABLE OR HAZARDOUS WAREHOUSE
4. TANK
5. SHED
6. TRANSITORY SHELTER
7. IGLOO OR MAGAZINE
110
a portable, horizontal, rigid platform used as a base for assembling, storing, stacking, handling and transporting goods as a unit load, often equipped with a superstructure.
PALLETS
111
A platform, made of wood, plastic or steel, about 6 inches high by 40 in. by 48 in. on which goods are placed so they can be picked up by a forklift to be placed in storage or on a truck.
PALLETS
112
2 PALLET DESCRIPTION
- TWO-WAY PALLET
| - FOUR-WAY PALLET
113
A pallet constructed with stringers that do not have notches, so that fork tines can be inserted only from the two open ends.
TWO-WAY PALLET
114
A pallet which, by its construction, allows forks of a lift to enter the pallet from both sides and ends.
FOUR-WAY PALLET
115
2 PALLET STRUCTURE TYPE
1. BLOCK-TYPE PALLET
| 2. STRINGER-TYPE PALLET
116
3 OTHER PALLET TYPE
1. STACKABLE PALLET
2. PLASTIC PALLET
3. STEEL PALLET
117
A physical storage container such as a small corrugated or plastic parts bin. Likewise a box, frame, crib or enclosed container used to store or ship goods.
BIN
118
A shelving unit with physical dividers separating the storage locations.
BIN SHELVING
119
storage racking system specifically designed to store palletized loads.
RACKING SYSTEM
120
4 TYPES OF RACKING SYSTEM
1. SELECTIVE RACK
2. DOUBLE DEEP RACK
3. DRIVE-IN/DRIVE THRU RACK
4. CANTILEVER RACK
121
The movement of materials (raw materials, scrap, semi-finished and finished) to, through, and from productive processes; in warehouses and storage; and in receiving and shipping areas.
MATERIALS HANDLING
122
10 TYPES OF MATERIAL HANDLING EQUIPMENT
1. PALLET TRUCK
2. COUNTERBALANCED FORKLIFT TRUCK
3. REACH TRUCK
4. NARROW-AISLE TRUCK
5. VERY NARROW-AISLE TRUCK
6. ORDER-PICKER TRUCK
7. STRADDLE TRUCK
8. TRACTOR/TRAILER TRUCK
9. HAND TRUCK
10. CONVEYOR
123
A manually powered fork truck. The operator physically pushes the forks into the opening on the pallet and "jacks" the racheting lift mechanism so as to raise the pallet off the floor. Once lifted, the load can be manually moved from place to place.
MANUAL HAND PALLET TRUCK
124
A machine-powered device either electric- or gas-powered, used to raise and lower freight and to move freight to different warehouse locations.
LIFT TRUCK OR FORKLIFT
125
Fork lift truck using rear-mounted batteries and/or weights for maintaining balance.
COUNTERBALANCED FORKLIFT TRUCK
126
Material handling vehicle equipped with a device permitting the extension of the forks beyond the front of the truck to pick up loads. There are two types: (1) standard and (2) double-deep.
REACH TRUCK
127
is the application or use of protective measures to include cleaning, drying, preservative application, protective wrapping and/or cushioning, placing the item into a container, and complete identification markings.
PRESERVATION
128
A ________ is used to keep items in a useful condition by providing a barrier to keep out moisture, oxygen, and other causes of corrosion.
preservative
129
a series of activities designed to improve workplace organization and standardization.
5S System
130
5S System
```
Sort (Seri)
Systemize/Set in Order (Seiton)
Shine (Seiso)
Standardize (Seiketsu)
Sustain (Shitsuke)
```
131
get rid of clutter; separate out what is needed for the operations, through all items and removed unneeded items.
Sort (Seiri)
132
remaining items, set limits, create temporary location indicators, organize the work area; make it easy to find what is needed.
Systemize/Set in Order (Seiton)
133
clean everything, the work area and use cleaning as inspection; make it shine.
Shine (Seiso)
134
the first 3’s by implementing visual displays or controls, establish schedules and methods of performing the cleaning and sorting.
Standardize (Seiketsu)
135
the gains thru implementation of mechanisms to sustain the gains through involvement of people, integration into the performance measurement system, discipline, and recognition.
Sustain (Shitsuke)
136
Internal measures or programs established to protect supplies from damage or destruction due to fire, unsafe practices and accidents.
SAFETY
137
- heavy items on bottom
- big loads under small loads
- even stacks
- nothing sticking out; clear aisles
SAFE STACKING
138
Protection of supplies against theft, sabotage, or other malicious acts .
SECURITY
139
Internal active and passive measures designed to prevent unauthorized access to personnel, equipment, installations, materiel and documents, and to safeguard them against espionage, sabotage, damage, and theft.
SECURITY
140
refers to Personnel/Units who are the recipients of supplies.
END USER
141
refers to all items issued to PAF personnel and Units .
PAF SUPPLIES
142
is a document used in requesting supplies and materials that are carried on stocks.
Requisition and Issue Slip (RIS)
143
is the document that shall be used every time there will be a transfer of property from an outgoing accountable officer to his/her successor or from one accountable officer to another of the same or another entity
Property Transfer Report (PTR)
144
refers to the subordinate unit supply Officer of an accountable activity. Responsible for the care, maintenance and safeguarding of government property in his custody.
Responsible Supply Officer (RSO)
145
refer to the accountable Officer of a designated accountable activity who is primarily responsible for the implementation of supply accounting
Supply Accountable Officer (SAO)
146
Requirements for Issuance of Supply
- Issuance Directive (ID)
| - Requisition and Issue Slip (RIS) or Property Transfer Report (PTR) (for equipment and vehicles)
147
“No _______, No Issuance” policy shall be strictly implemented.
RIS (Requisition and Issue Slip)
148
TRUE or FALSE
Validity of Issuance is effective only on the validity date indicated in the Issuance Directive.
TRUE
149
TRUE or FALSE
In the absence of SAO/RSO, authorized representative shall present authorization letter signed by Unit SAO/RSO and a valid military ID prior to issuance of supplies
TRUE
150
________ must be copy furnished to GOC, 422nd SOG and 421st SMG to facilitate issuance of Supply
Issuance Directive
151
The Squadron Commander at respective deployment
areas and the Group Operations Officer shall be the signatory of ________ for items being withdrawn at their respective AORs
RIS (Requisition and Issue Slip)
152
For the issuance of Equipment, ________ for Equipment shall accomplish PTR prior to Issuance by 422nd SOG to end-user.
PAFSAO
153
In the case of Unavailability of supplies, the 422nd SOG shall inform the ________ thru ODO for information and proper disposition of Issuance Directives
Higher Headquarters (OA-4/ALC)
154
In the case that the Issuance Directive has expired, the ________ shall coordinate the Higher Headquarters (OA-4/ALC) for the revalidation of ID.
End User
155
In the case that RIS is unavailable, supply personnel or the representative of the Unit may Withdraw the Items provided he/she will sign a ________ stating that he/she is accountable/ liable for the submission of required documents within the prescribed period as stated in the ________ form.
waiver
156
TRUE or FALSE
Defective items shall be returned to 4211th TOSS thru 422nd SOG for replacement and appropriate action.
TRUE
157
Accomplish necessary report and forward copies of RIS/PTR to ________ for appropriate reporting to Higher Headquarters.
PAFSAO
158
Prepares Issuance Directives & simultaneously furnish 420th SW & Customer Units
A-4/ALC
159
________ will prepare the Items for issuance.
Item Manager
160
________ will prepare RIS based on the available items and sizes
Unit SAO
161
________ will receive the Items and AAR to OA4.
Customer Units
162
Shall be responsible for the collection of data tariff sizes from the incoming trainees (PAFOCS, BMS) and reservist during the recruitment process
PAFHRMC/AFRC
163
Process of maintaining inventory data on the quantity, location, and condition of supplies & equipment Due in, on hand, and Due out,
STOCK CONTROL
164
To determine quantities of material & equipment available or required for issue and to facilitate distribution and management of material
STOCK CONTROL
165
also known as Inventory control
STOCK CONTROL
166
physical count of all materiel items for which responsibility has been fixed
INVENTORY
167
actual counting of item at its storage or sites
PHYSICAL COUNT
168
Honest, effective and efficient procurement, use, safeguarding and disposition of government materials and equipment with determination of time, qualities and quantities to procure.
SUPPLY MANAGEMENT
169
Personal obligation and responsibility from proper care, economical use, security and proper disposition of supply and equipment in accordance with prescribe rule procedures and practices
SUPPLY DISCIPLINE
170
A general supply term used to plan and control supply operations. The ________ operations is the quantity of materiel authorized or directed to be held in anticipation of future demands. The level may be expressed per one day of supply or in quantity per item.
LEVEL OF SUPPLY
171
The maximum quantity of materiel authorized to be on hand and in order to sustain certain operations. The ________ consists of the sum of the stocks at the operating level and the order and shipping time (or procurement lead-time).
REQUISITIONING OBJECTIVE
172
The quantity of materiel required to sustain operation in the interval between requisitions or between the arrivals of successive shipment.
OPERATING LEVEL
173
The quantity of materiel in addition to the operating level required to be on hand to permit continuous operations where there is minor interruption in the demand.
SAFETY LEVEL
174
The elapsed time between the planning of an order for stock and a receipt of stock.
ORDER AND SHIPPING TIME
175
The maximum quantity of material authorized to be on hand to sustain the current operations and to meet unforeseen requirements. The ________ consists of the sum of the stocks represented by the operating level and the safety level.
STOCKAGE OBJECTIVE
176
The point in time when a stock replenishment requisition should be submitted to maintain the stockage objective. The sum of the safety level of supply plus the level for order and shipping time equals the ________.
REORDER POINT
177
The unit of quantity of supplies adopted as a standard measurement used to estimate the average daily expenditure of supplies under stated conditions. A ________ is estimated when feasible, by dividing supplies consumed over the previous 12 months by 360.
DAY OF SUPPLY
178
The portion of stock requisitioned which is not immediately available for supply and which is not referred to as secondary source of supply action, but is recorded as a commitment for future issue.
DUE-IN
179
Supplies accumulated in excess of the requisitioning objective and authorized to be retained for specific purpose; i.e.. contingencies and mobilization stocks.
RESERVES
180
Efficient ________ allows you to have the right amount of stock in the right place at the right time.
stock control
181
It ensures that capital is not tied up unnecessarily, and protects production if problems arise with the supply chain
STOCK CONTROL
182
It promotes resource accountability and transparency…visible and optimal utilization.
STOCK CONTROL
183
capacity to support soldiers in the field with what is needed, when, where in a condition & quantity required at minimum expense.
INVENTORY EFFICIENCY
184
TRUE or FALSE
Maintaining stocks improve customer/user service compensating for time needed to produce, handle and ship supplies.
TRUE
185
3 BASIC REASONS FOR KEEPING AN INVENTORY
1. Time - “lead-time”
2. Uncertainties in demand
3. Economies of scale - bulk inventory
186
5 TYPES OF STOCKS
1. Raw materials (inputs brought from suppliers waiting to be used)
2. Work in progress WIP (incomplete products still in the process of being made)
3. Finished products
4. Properties for Disposal/Re-use
5. Equipment, plant and machinery spares
187
Standard stock calculation based on the requirements of the unit:
For a three (3) = 90 days month supplies, it is determined by computing the average monthly consumption for the last six (6) months plus ________ allowance for contingencies multiplied by three (3). As time goes on, the level of supplies must be maintained by using the Reorder Point Technique.
10%
188
When the stock reaches the ________, an order is initiated for additional stock
Reorder Point
189
TRUE or FALSE (tip from instructor)
No single techniqe is considered the “best” — it all depends on situation analysis.
TRUE
190
TRUE or FALSE (tip from instructor)
For a three (3) = 90 days month supplies, it is determined by computing the average monthly consumption for the last six (6) months plus 10% allowance for contingencies multiplied by three (3).
TRUE
191
2 Reasons for Maintaining Stocks
1. To improve customer/user service compensating for time needed to produce, handle and ship supplies
2. Inventory efficiency - capacity to support soldiers in the field with what is needed, when, where in a condition & quantity required at minimum expense
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Reorder Point Formula
ROP = Ld + Safety Stock
Where:
L – as the lead time which is stated in weeks
d – generated demand in units for weeks
