Purchasing and Stores Functions
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Questions and Answers

What is the primary responsibility of the purchasing department?

  • Ensuring timely supply of goods (correct)
  • Organizing discussions with suppliers
  • Selling obsolete materials
  • Collecting information about new materials
  • Which of the following is NOT a function of the storage department?

  • Issuing requisitions
  • Receiving materials from suppliers
  • Placing purchase orders (correct)
  • Maintaining necessary records
  • What must the purchasing department verify before approving invoices?

  • Actual goods received and their prices (correct)
  • Supplier ratings and reviews
  • Quality of goods after delivery
  • Delivery methods of goods
  • How does the storekeeper issue materials to different departments?

    <p>On requisitions signed by an authorized person (A)</p> Signup and view all the answers

    What function does follow-up perform in the purchasing department?

    <p>Reminding suppliers of orders to ensure timely delivery (A)</p> Signup and view all the answers

    Which action is part of the miscellaneous functions of the storage department?

    <p>Handling claims for damaged goods (C)</p> Signup and view all the answers

    What is the main purpose of verifying invoices in the purchasing department?

    <p>To confirm goods received are charged correctly (C)</p> Signup and view all the answers

    What role does maintaining good relations with suppliers play in the purchasing function?

    <p>It can facilitate better prices and terms (A)</p> Signup and view all the answers

    Flashcards

    Purchasing department function

    Procuring materials of right quality, quantity, and source at the best price, within the right time.

    Order placement

    The act of placing orders for materials, carefully considering the quantity and quality needed by the company, by the purchasing department.

    Follow up (purchasing)

    Ensuring timely delivery of ordered materials , maintaining contact with suppliers to manage delivery dates.

    Invoice verification

    Checking supplier invoices to ensure that correct goods are charged at the correct price, and handling transit damages.

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    Storage department function

    Handling the physical storage and distribution of raw materials, parts, and finished goods until their utilization or sale.

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    Issuing requisitions

    The process of requesting materials from the storage department to other departments based on their needs.

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    Receiving materials (storage)

    The process of accepting incoming materials from suppliers and factory finished goods, verifying quantity and condition before storage.

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    Issuing materials (storage)

    The process of releasing materials from storage to the requesting department, with an authorized signature.

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    Study Notes

    Purchasing & Stores

    • Purchasing is procuring the right quality materials at the right time, right quantity, and right price.

    Purchasing Department Functions

    • Source Selection: Locates and selects vendors offering materials at best terms.
    • Placing Orders: Aims for lowest cost, proper quantity, and quality.
    • Order Follow-up: Ensures timely delivery, reminding suppliers and verifying delivery dates.
    • Invoice Verification: Checks invoices for accuracy, handling adjustments for damaged goods.
    • Miscellaneous: Organizes supplier discussions, maintains vendor relationships, tracks records, monitors new materials, and notifies departments of potential delays.

    Storage Department Functions

    • Issuing Requisitions: Departments request materials, and the storekeeper checks inventory levels.
    • Receiving Materials: Storekeeper receives deliveries (raw materials, finished products).
    • Storing Materials: Goods are unpacked, checked, and placed in appropriate containers.
    • Issuing Materials: Storekeeper releases materials upon authorized requests.
    • Miscellaneous: Handling obsolete materials, damage claims, overseeing store operations, physical inventory counts, notifying inventory controls, and maintaining records.

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    Description

    This quiz covers the essential functions of the purchasing and storage departments. It includes topics like source selection, placing orders, order follow-up, and storing materials. Test your understanding of the processes involved in procuring and managing inventory effectively.

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