Chapter 13 part 1 Flashcards Preview

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Flashcards in Chapter 13 part 1 Deck (11)
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1
Q

Materials requirements planning (MRP)

A

seeks to reduce required inventory levels by improving the accuracy of forecasting techniques to better schedule purchases to satisfy production needs

2
Q

Economic order quantity (EOQ)

A

calculates the optimal order size to minimize the sum or ordering, carrying, and stockout costs

3
Q

Kickbacks

A

are gifts from suppliers to purchasing agents for the purpose of influencing their choose of suppliers, are another threat

4
Q

Procurement card

A

a corporate credit card that employees can use only at designated suppliers to purchase specific kinds of items

5
Q

Voucher package

A

When a supplier’s invoice is received, the accounts payable department is responsible for matching it with a corresponding purchase order and receiving report

6
Q

Two ways to process supplier invoices

A

nonvoucher or voucher system

7
Q

Nonvoucher system

A

each approved invoice (along with supporting documentation) is posted to individual supplier records in the account payable file and is then stored in an open-invoice file

8
Q

Voucher system

A

an additional document called a disbursement voucher is also created when a supplier invoice is approved for payment

9
Q

Disbursement voucher

A

identifies the supplier, lists the outstanding invoices, and indicates the net amount to be paid after deducting any applicable discounts and allowances

10
Q

Vendor-managemnt inventory

A

Suppliers are given acces to sales and inventory data and are authorized to automatically replenish inventory when stocks fall to predetermined reorder points

11
Q

Evaluated receipts settlement (ERP)

A

replaces the traditional three-way matching process (vendor invoice, receiving report, and purchase order) with a two-way match of the purchase order and receiving report