Material Management System

Question 1

This system can be used to manage functions like purchasing, accounting, inventory management, and patient supply charges.

Answer 1

Material Management Information System (MMIS)

Question 2

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

Answer 2

Purchase Request

Question 3

MCQ:

• It allows one to track the vendor quotations for items

A. Purchase Request
B. Purchase Quotation
C. Purchase Order

Answer 3

B. Purchase Quotation

Question 4

In order to create multiple quotations, what would be purchasing used?

Answer 4

Purchase Quotation Wizard (SAP Business One)

Question 5

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.

Answer 5

Inventory Control

Question 6

What are the FOUR strategies on how to improve inventory control within healthcare facilities by Johnston (2014)?

Answer 6

1. Making sure shippers are accurate
2. Alignment with sales projections
3. Compliance with regulations
4. Establishing buying cycles

Question 7

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

Answer 7

D. Establishing buying cycles

Question 8

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

Answer 8

A. Making sure shippers are accurate

Question 9

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

Answer 9

C. Compliance with regulations

Question 10

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

Answer 10

B. Alignment with sales projections

Question 11

True or False

In the Material Management System, the INVENTORY ITEM MAINTENANCE screen has many sections.

Answer 11

True

Question 12

It is used for the maintenance of the attributes of an inventory item such as product type, item class, item type, etc.

Answer 12

Item tab

Question 13

It is formed specifies inventory levels across all warehouses.

Answer 13

Item availability

Question 14

This applies to the distribution and retail industries where the goods for sale are fast-moving.

Answer 14

Item indents and issues

Question 15

It is the minimum quantity of an item that a company has in stock.

Answer 15

Re-order level

Question 16

It is a basic re-ordering method implemented in many ERPs and other inventory management software.

Answer 16

Min/Max inventory ordering method

Question 17

The value is representative of a stock level that follows the re-order.

Answer 17

Min

Question 18

The value is representative of a new target interpreted as the Economic Order Quantity (EOQ).

Answer 18

Max

Question 19

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.

Answer 19

Enquiries

Question 20

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.

Answer 20

Quotations

Question 21

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.

Answer 21

Order

Question 22

Fill in the blanks:

From a buyer’s point of view, it expresses the intention to buy and is called a ___

Answer 22

Purchase order

Question 23

Fill in the blanks:

From a seller’s point of view the buyer expresses the intention to sell and is referred as ___

Answer 23

Sales order

Question 24

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.

Answer 24

Invoice or bill

Question 25

For any purchase or sale to take place, this needs to be created in order to enable a quotation, order, invoice, tax forms, etc.

Answer 25

Documents

Question 26

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

Answer 26

Purchase quotation

Question 27

The several qualities of preferred vendors that a company looks for are;

Answer 27

- On-time performance - Reasonable cost - High quality products and services - Fully licensed, bonded, and insured - Good business practices

Question 28

It is a document that notifies the purchasing department certain items or services need to be replenished.

Answer 28

Purchase requests or Purchase requisitions

Question 29

It is a document that records a business transaction between the buyer and the seller.

Answer 29

Purchase order

Question 30

Fill in the blanks: The person who creates the document, either a purchase request or an order, is the?

Answer 30

Originator

Question 31

This document is temporarily saved as a draft.

Answer 31

Approval process

Question 32

It is immediately sent to the first approval stage when the approval process is launched.

Answer 32

Internal request

Question 33

Fill in the blanks: This request is received in ___ and the approver can access the document.

Answer 33

Message/Alerts Overview Window

Question 34

What are the FIVE documentation needed in the Material Management Process by Webrino (2018)?

Answer 34

1. Enquiries 2. Quotations 3. Orders 4. Invoice/Bill 5. Documents

Question 35

What are the SIX policies for the receipt and inspection of goods, by York College (2017)?

Answer 35

1. Signing for deliveries 2. Refusing delivery 3. Record Retention 4. Inspecting a shipment 5. Partial deliveries 6. Tracking of goods

Question 36

This is only for temporary movement.

Answer 36

Returnable Gate Pass

Question 37

This is only for permanent movement.

Answer 37

Non-returnable Gate Pass

Question 38

- 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

Answer 38

Expired Stock Inventory

Question 39

- About how to handle defective goods - To be sold as scrap, reworked, returned, or used - Warehouse can be used temporarily

Answer 39

Quarantine Stock Inventory

Question 40

Under Quarantine Stock Inventory, the inbound inspection upon receipt by?

Answer 40

- Manufactured end items - Purchase items - Sold items or sales return orders - Enterprise planning distribution

Question 41

Under Quarantine Stock Inventory, the outbound inspection upon receipt by?

Answer 41

Material to production

Question 42

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

Answer 42

C. First Expired, First Out (FEFO)

Question 43

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

Answer 43

A. First In, First Out (FIFO)

Question 44

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

Answer 44

B. Last In, First Out (LIFO)

Question 45

What are the THREE issue methods that are currently used in the healthcare industry?

Answer 45

1. First In, First Out (FIFO) 2. Last In, First Out (LIFO) 3. First Expired, First Out (FEFO)

Question 46

MMS usually allows tax rates to be defined internally via tax codes, or imported from an external source.

Answer 46

General Tax Formula Configuration

Question 47

The following taxes can usually be processed while posting documents;

Answer 47

- Tax on sales and purchase - Additional taxes like VAT - Sales and use tax, as in USA - Withholding tax, like income tax in India

Question 48

It is the process where a business physically counts its entire inventory.

Answer 48

Inventory count

Question 49

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

Answer 49

E. All of the above

Question 50

Which of the following is not associated with the word "purchase"? A. Buy B. Obtain C. Release D. Secure E. Procure

Answer 50

C. Release

Question 51

___ is a formal statement setting out the estimated cost for a particular job, product, or service. A. Enquiries B. Quotation C. Invoices D. Orders

Answer 51

C. Invoices

Question 52

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

Answer 52

D. Re-order level

Question 53

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

Answer 53

D. Orders

Question 54

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

Answer 54

A. Stocktaking