Max Sdn Bhd is a medium size company dealing with distribution of medical supplies to the...

 

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Max Sdn Bhd is a medium size company dealing with distribution of medical supplies to the pharmacies around southern area of Malaysia. The followings are the description of the purchasing process of the company. The company maintain an inventory system that tracks the inventory level of all the products. The store clerk prepares a purchase requisition when the inventory level reaches the re- order point and sends the requisition form to the supervisor for verification. The supervisor checks the inventory system to verify purchase requisition. He signs the purchase requisition form and forwards it to purchasing department. Purchase clerk picks randomly the suppliers from the pharmaceutical supplier's directory website. Then he prepares the purchase order based on the purchase requisition form and mails the order to the vendor. A copy of the purchase order is filed in the purchase order file according to the date sequence. Upon receipt of goods from the vendor, the store clerk prepares two copies of receiving reports. He signs the receiving report and send a copy to accounts payable department. He files a copy in numerical order. The vendor's invoice is sent directly to the accounts payable department. The account payable clerk retrieves the purchase order and matches the details with the receiving report and invoice and then verifies the calculation in the invoice. The documents are filed in open invoice file. Then he posts the entries to the account payable ledger. For goods return, the store clerk prepares a goods return report, send a copy to vendor and files another copy in goods return file. The credit notes for the return will be sent directly by the vendor to accounts payable department. Accounts payable clerk will update the accounts payable ledger and file them. At the end of each month the accounts payable clerk will retrieve the invoices and related documents from the open invoices file, and process them for payment. The cheque together with the invoice are sent to the manager for review. After checking the documents, the manager will sign them and return them to the accounts payable clerk to distribute the cheques to the vendors. The invoices are marked as paid and filed in the paid invoices file. Account payables clerk will prepare a monthly summary of cheques issued to vendor and used them to update the accounts payable ledger. Required: a. b. Discuss FIVE (5) weaknesses in managing the purchasing process of Max Sdn Bhd; and Suggest FIVE (5) corrective actions that can be used to address the weaknesses identified in (a). Your answer should be written in the following format: a. Weaknesses b. Corrective Actions Max Sdn Bhd is a medium size company dealing with distribution of medical supplies to the pharmacies around southern area of Malaysia. The followings are the description of the purchasing process of the company. The company maintain an inventory system that tracks the inventory level of all the products. The store clerk prepares a purchase requisition when the inventory level reaches the re- order point and sends the requisition form to the supervisor for verification. The supervisor checks the inventory system to verify purchase requisition. He signs the purchase requisition form and forwards it to purchasing department. Purchase clerk picks randomly the suppliers from the pharmaceutical supplier's directory website. Then he prepares the purchase order based on the purchase requisition form and mails the order to the vendor. A copy of the purchase order is filed in the purchase order file according to the date sequence. Upon receipt of goods from the vendor, the store clerk prepares two copies of receiving reports. He signs the receiving report and send a copy to accounts payable department. He files a copy in numerical order. The vendor's invoice is sent directly to the accounts payable department. The account payable clerk retrieves the purchase order and matches the details with the receiving report and invoice and then verifies the calculation in the invoice. The documents are filed in open invoice file. Then he posts the entries to the account payable ledger. For goods return, the store clerk prepares a goods return report, send a copy to vendor and files another copy in goods return file. The credit notes for the return will be sent directly by the vendor to accounts payable department. Accounts payable clerk will update the accounts payable ledger and file them. At the end of each month the accounts payable clerk will retrieve the invoices and related documents from the open invoices file, and process them for payment. The cheque together with the invoice are sent to the manager for review. After checking the documents, the manager will sign them and return them to the accounts payable clerk to distribute the cheques to the vendors. The invoices are marked as paid and filed in the paid invoices file. Account payables clerk will prepare a monthly summary of cheques issued to vendor and used them to update the accounts payable ledger. Required: a. b. Discuss FIVE (5) weaknesses in managing the purchasing process of Max Sdn Bhd; and Suggest FIVE (5) corrective actions that can be used to address the weaknesses identified in (a). Your answer should be written in the following format: a. Weaknesses b. Corrective Actions Max Sdn Bhd is a medium size company dealing with distribution of medical supplies to the pharmacies around southern area of Malaysia. The followings are the description of the purchasing process of the company. The company maintain an inventory system that tracks the inventory level of all the products. The store clerk prepares a purchase requisition when the inventory level reaches the re- order point and sends the requisition form to the supervisor for verification. The supervisor checks the inventory system to verify purchase requisition. He signs the purchase requisition form and forwards it to purchasing department. Purchase clerk picks randomly the suppliers from the pharmaceutical supplier's directory website. Then he prepares the purchase order based on the purchase requisition form and mails the order to the vendor. A copy of the purchase order is filed in the purchase order file according to the date sequence. Upon receipt of goods from the vendor, the store clerk prepares two copies of receiving reports. He signs the receiving report and send a copy to accounts payable department. He files a copy in numerical order. The vendor's invoice is sent directly to the accounts payable department. The account payable clerk retrieves the purchase order and matches the details with the receiving report and invoice and then verifies the calculation in the invoice. The documents are filed in open invoice file. Then he posts the entries to the account payable ledger. For goods return, the store clerk prepares a goods return report, send a copy to vendor and files another copy in goods return file. The credit notes for the return will be sent directly by the vendor to accounts payable department. Accounts payable clerk will update the accounts payable ledger and file them. At the end of each month the accounts payable clerk will retrieve the invoices and related documents from the open invoices file, and process them for payment. The cheque together with the invoice are sent to the manager for review. After checking the documents, the manager will sign them and return them to the accounts payable clerk to distribute the cheques to the vendors. The invoices are marked as paid and filed in the paid invoices file. Account payables clerk will prepare a monthly summary of cheques issued to vendor and used them to update the accounts payable ledger. Required: a. b. Discuss FIVE (5) weaknesses in managing the purchasing process of Max Sdn Bhd; and Suggest FIVE (5) corrective actions that can be used to address the weaknesses identified in (a). Your answer should be written in the following format: a. Weaknesses b. Corrective Actions Max Sdn Bhd is a medium size company dealing with distribution of medical supplies to the pharmacies around southern area of Malaysia. The followings are the description of the purchasing process of the company. The company maintain an inventory system that tracks the inventory level of all the products. The store clerk prepares a purchase requisition when the inventory level reaches the re- order point and sends the requisition form to the supervisor for verification. The supervisor checks the inventory system to verify purchase requisition. He signs the purchase requisition form and forwards it to purchasing department. Purchase clerk picks randomly the suppliers from the pharmaceutical supplier's directory website. Then he prepares the purchase order based on the purchase requisition form and mails the order to the vendor. A copy of the purchase order is filed in the purchase order file according to the date sequence. Upon receipt of goods from the vendor, the store clerk prepares two copies of receiving reports. He signs the receiving report and send a copy to accounts payable department. He files a copy in numerical order. The vendor's invoice is sent directly to the accounts payable department. The account payable clerk retrieves the purchase order and matches the details with the receiving report and invoice and then verifies the calculation in the invoice. The documents are filed in open invoice file. Then he posts the entries to the account payable ledger. For goods return, the store clerk prepares a goods return report, send a copy to vendor and files another copy in goods return file. The credit notes for the return will be sent directly by the vendor to accounts payable department. Accounts payable clerk will update the accounts payable ledger and file them. At the end of each month the accounts payable clerk will retrieve the invoices and related documents from the open invoices file, and process them for payment. The cheque together with the invoice are sent to the manager for review. After checking the documents, the manager will sign them and return them to the accounts payable clerk to distribute the cheques to the vendors. The invoices are marked as paid and filed in the paid invoices file. Account payables clerk will prepare a monthly summary of cheques issued to vendor and used them to update the accounts payable ledger. Required: a. b. Discuss FIVE (5) weaknesses in managing the purchasing process of Max Sdn Bhd; and Suggest FIVE (5) corrective actions that can be used to address the weaknesses identified in (a). Your answer should be written in the following format: a. Weaknesses b. Corrective Actions Max Sdn Bhd is a medium size company dealing with distribution of medical supplies to the pharmacies around southern area of Malaysia. The followings are the description of the purchasing process of the company. The company maintain an inventory system that tracks the inventory level of all the products. The store clerk prepares a purchase requisition when the inventory level reaches the re- order point and sends the requisition form to the supervisor for verification. The supervisor checks the inventory system to verify purchase requisition. He signs the purchase requisition form and forwards it to purchasing department. Purchase clerk picks randomly the suppliers from the pharmaceutical supplier's directory website. Then he prepares the purchase order based on the purchase requisition form and mails the order to the vendor. A copy of the purchase order is filed in the purchase order file according to the date sequence. Upon receipt of goods from the vendor, the store clerk prepares two copies of receiving reports. He signs the receiving report and send a copy to accounts payable department. He files a copy in numerical order. The vendor's invoice is sent directly to the accounts payable department. The account payable clerk retrieves the purchase order and matches the details with the receiving report and invoice and then verifies the calculation in the invoice. The documents are filed in open invoice file. Then he posts the entries to the account payable ledger. For goods return, the store clerk prepares a goods return report, send a copy to vendor and files another copy in goods return file. The credit notes for the return will be sent directly by the vendor to accounts payable department. Accounts payable clerk will update the accounts payable ledger and file them. At the end of each month the accounts payable clerk will retrieve the invoices and related documents from the open invoices file, and process them for payment. The cheque together with the invoice are sent to the manager for review. After checking the documents, the manager will sign them and return them to the accounts payable clerk to distribute the cheques to the vendors. The invoices are marked as paid and filed in the paid invoices file. Account payables clerk will prepare a monthly summary of cheques issued to vendor and used them to update the accounts payable ledger. Required: a. b. Discuss FIVE (5) weaknesses in managing the purchasing process of Max Sdn Bhd; and Suggest FIVE (5) corrective actions that can be used to address the weaknesses identified in (a). Your answer should be written in the following format: a. Weaknesses b. Corrective Actions Max Sdn Bhd is a medium size company dealing with distribution of medical supplies to the pharmacies around southern area of Malaysia. The followings are the description of the purchasing process of the company. The company maintain an inventory system that tracks the inventory level of all the products. The store clerk prepares a purchase requisition when the inventory level reaches the re- order point and sends the requisition form to the supervisor for verification. The supervisor checks the inventory system to verify purchase requisition. He signs the purchase requisition form and forwards it to purchasing department. Purchase clerk picks randomly the suppliers from the pharmaceutical supplier's directory website. Then he prepares the purchase order based on the purchase requisition form and mails the order to the vendor. A copy of the purchase order is filed in the purchase order file according to the date sequence. Upon receipt of goods from the vendor, the store clerk prepares two copies of receiving reports. He signs the receiving report and send a copy to accounts payable department. He files a copy in numerical order. The vendor's invoice is sent directly to the accounts payable department. The account payable clerk retrieves the purchase order and matches the details with the receiving report and invoice and then verifies the calculation in the invoice. The documents are filed in open invoice file. Then he posts the entries to the account payable ledger. For goods return, the store clerk prepares a goods return report, send a copy to vendor and files another copy in goods return file. The credit notes for the return will be sent directly by the vendor to accounts payable department. Accounts payable clerk will update the accounts payable ledger and file them. At the end of each month the accounts payable clerk will retrieve the invoices and related documents from the open invoices file, and process them for payment. The cheque together with the invoice are sent to the manager for review. After checking the documents, the manager will sign them and return them to the accounts payable clerk to distribute the cheques to the vendors. The invoices are marked as paid and filed in the paid invoices file. Account payables clerk will prepare a monthly summary of cheques issued to vendor and used them to update the accounts payable ledger. Required: a. b. Discuss FIVE (5) weaknesses in managing the purchasing process of Max Sdn Bhd; and Suggest FIVE (5) corrective actions that can be used to address the weaknesses identified in (a). Your answer should be written in the following format: a. Weaknesses b. Corrective Actions

Answer rating: 100% (QA)

There are several weaknesses in the purchasing process of Max Sdn Bhd 1 There is no formalized process for supplier selection Purchase clerk picks ran... View the full answer