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19 Cards in this Set
- Front
- Back
what activities are included in material management
7 |
purchasing
warehousing materials planning and control traffic receiving quality control salvage and scrap disposal |
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abc analysis
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not all inventory are created equal
rank inventory |
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mrp
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materials planning and control process
1 year to plan |
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warehousing and stores
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open air facilities
warehouse stores (stock room) |
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open air facilities
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basic raw materials
sand coal |
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warehouse
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components and semi-finished
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stores (stock room)
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frequently used items
light bulbs office supplies |
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materials planning and control process
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customer demand (finish goods)
minus finished goods inventory production of finished goods raw material needed minus raw material inventory raw materials purchased |
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purchasing
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determine materials needs
locate source of supply select suppliers establish acceptable price and set terms of sale follow up of purchase until delivery |
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criteria for purchasing
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design specifications (tolerances)
chemical and physical properties dependability ease of maintenance ease of use dimensions brand, market grade, industry standard |
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when to order more than necessary
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must be ordered at a minimum
volume price breaks low value parts order jointly with other parts used in a broad range transportation encourage quantity high degree of uncertainty in delivery or continuity |
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what factors are used in selecting a vendor
in order of importance |
quality
reliability capability financial considerations |
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methods of vendor evaluation
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categorical
weighted cost-ratio |
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categorical method
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each vendor is given a plus, minus, or neutral rating
overall grade ratings given by every department develop census |
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weighted score method
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numerical and weighted scores to indicate importance of factors
acceptable and unacceptable ranges set |
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cost-ratio method
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identifies all identifiable purchasing costs and compares them to the value of shipments received from individual suppliers
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best price
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looks to future
price quotations and price lists |
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f.o.b. origin
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buyer takes care of transportation
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f.o.b. destination
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seller takes care of transportation
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