1.

Enumerate and discuss the process of Purchasing for Materials Management

System.

 Purchase request- from the word itself, it is about notifying the purchasing
department on what is the status of the items on hand and what items should be
filled up again as well as the quantities needed for each of them.
 Purchase quotation- is a document for requesting information from the seller
about the delivery dates and prices of each items before the said purchase date
 Purchase order- this records the transaction of orders between the buyer and
seller which includes not only the delivery details and prices but also the date of
order and order number
 Goods receipt PO- this is important when receiving an order because the buyer
must first check if the delivery corresponds to the requirements of the order
 A/P invoice- refers to the bill that the buyer owes to the seller for the items
purchased
 Outgoing payment- in business terms, it is the process of payment to the
vendor after going through the items or services that were charged to the buyer.

2. Differentiate the following:(a) Enquiries; (b) Quotations; (c) Orders; (d) Invoices;

(e) Documents

 Enquiries- are way of asking someone for information, and in materials

management system, it is the act of building a relationship with the right vendor
by getting information about the products in getting a quotation, placing the
order, and receiving requirements
 Quotations- this only involves the quantity and unit price of each items, delivery
details, payment details, taxation and many more.
 Orders- this may be associated with a request for something or an intention to
sell a product. It can be spoken or written by the buyer or seller and is also a
form of contract between the two involved.
 Invoices- this is only provided by the seller and it is only about sales transaction
in which it includes the quantities and agreed prices of the products given by the
seller to the buyer.
 Documents- this refers to the compiled papers in quotation, orders, and invoices
in order to have an audit for checking purchases and also to have an honest
transaction between the buyer and seller.

3. Differentiate the 3 Issuing Methods employed in Materials Management System.

 First in, first out- FIFO is when the inventory items are sold based on what is
the order of purchase, from first to last.
 Last in, first out- in LIFO, items are sold by starting first from the last item to
enter the system.
 First expired, first out- while in FEFO, items are sold based on the expiry date
and disregarding the time and date of purchase.