LESSON XII

MATERIAL MANAGEMENT SYSTEM

Essay

Name of Student Juntado, Lexa Natalie C.

Year and Section CMT – 1C

Name of Instructor Prof. Neil Allen El Quinto

Date Submitted November 28, 2019 Rating

B. Essay. Answer the following questions in 150 words or more.

1. Which issue method would you recommend to be used in the healthcare facility?
Why?

Aside from the most common technique, first in, first out. I would recommend the
alternative method of this which is the last method. First Expired, first out method
enables the organization of an institution to get a distribution process optimization
that able to minimize the waste product of some hospitals. Furthermore, the
distribution of product with inappropriate shelf-life cycle will cause negative impact
and sales on product demands. First Expired, first out will be helpful to the as an
alternative to the first in, first out method.

2. Why is periodic physical stock taking and adjustments with tracking important in
monitoring the inventory of the hospital?

This allows the institution to compare the two counts to the quantity recorded in
the system and identify potential inventory problems. A physical inventory
count allows the them to correctly determine inventory quantities, identify
necessary inventory adjustments and investigate variances. A detailed physical
inventory counts are a way of ensuring that an institution’s inventory management
system is accurate and as a check to make sure goods are not being lost or
stolen. A physical count of an institution’s entire inventory is generally taken prior
to the issuance of the balance sheet. Furthermore, Inventory is needed to
calculate cost of goods sold on the taxes form. Inventory costs reduce income and
taxes. This is the end-of-year inventory done by many retailers. It also provides
institutions with many benefits, including: Improved operational efficiency.
Improved customer service. More accurate inventory records