Monday, February 6, 2017

MATERIAL MANAGEMENT

MATERIAL MANAGEMENT is the systematic process of overseeing and controlling the acquisition and utilization of supplies to ensure both availability and cost effectiveness.

INVENTORY MANAGEMENT
Inventory Level Checks
  • Perpetual systems – keep account of the inventory each time a product is used.
  • Periodic systems – once a week or at another specified time the stock level is counted and appropriate supplies are ordered.
  • Random checks  – are used to document the value of supplies at a specific time.
Inventory Management Methods
  • Annual usage
    • Historical ordering data based on:
      • Workload of the laboratory
      • Actual purchase and usage
      • Predictions of future volume
  • Average daily usage - can be obtained by dividing the amount of supplies ordered in a year by 365 days.
  • Cost of Ordering - this figure is obtained by dividing the expenses of the purchasing section by the number of the purchase ordered.
  • Annual holding cost
    • Cost of carrying
    • Accounts for the expense of maintaining a stockroom for storing material not needed immediately.
  • Cost per unit - this value is obtained by dividing the purchase price by the container size.
  • Lead Time - the amount of time or advance notice, needed between placing an order and its arrival.

0 comments:

Post a Comment