Snmek 1

Anglicky v odbornch pedmtech"Support of teaching technical subjects in EnglishTutorial:Business Academy

Topic: Business supplying

Prepared by:Ing. Marcela Zlatnkov

Projekt Anglicky v odbornch pedmtech, CZ.1.07/1.3.09/04.0002je spolufinancovn Evropskm socilnm fondem a sttnm rozpotem esk republiky.

Is an extensive business activity by means of which the firm provides the necessary material for its main activity.The aim is to provide material in the required quantity, at a certain quality, at a bargain price and within a specified period.It includes two groups of activities: purchasing material and its storage.

Supply

1/ detection of material needs2/ negotiations with suppliers, studying offers3/ providing suppliers4/ concluding contracts of sale5/ making deliveries6/ receiving material at the warehouse, its control and registration7/ dispensation and transfer of material to the place of consumption Supply provides the following tasks:

The stock monitors what the consumption of material is, its quantity in stock, what should be bought.To calculate the future consumption of material, 3 methods are used: a/ method by technical documentation b/ index method c/ method by yield Using the methods depends on the production programme of the company, its size, quality and skills of workers

Supply planning

Plan of supplying has a form of balance in which we compare sources of supply and their use.It is in the form of natural units (for suppliers) and in monetary unitsEquation IS + P = C + FS IS......Initial supply P........planned purchase C.........total consumption FS.......final supply or supply normative

Material balance

Is determination of average (optimal) supply of material, which ensures the company continuity of production at the lowest costTime Standard of Stock (TSS) how many days the average stock lasts Delivery Cycle (c) number of days between two suppliersInsurance Stock (i) how many days the supply in stock should withstand when the delivery is delayedTechnical Stock (t) number of days which are needed to modify the material before it is consumedCalculation of the amount of stock(standardisation of stock)

Time Standard of Stock: TSS = 1/2c + i + tStandard of stock in natural units: SS = TSS * ccaverage daily consumption of material (c= C/360)Normative (N) in monetary units shows which quantity id tied up in company stockN = SS * KImportant formula

Important role in the circulating assets cycle plays its turnover time, i.e. period of money convert back into cash and number of cycles (turnover rate), i.e. how many times per period (e.g. year) it happens.

Turnover time (TT) = 360/turnover rateTells us how many days one turn lasts

Turnover rate (TR) = average stock/ total consumptionShows how many times stock turns over within the monitored period

1/ Why do we add the initial stock and subtract the final one when calculating a purchase of material?

2/ To make one skirt we need 0.65m of textile, a zipper, 0.02kg of buttons, and 5m of thread. Transfer the data into a table (which you draw into your exercise book) and calculate the planned use of the material for the estimated monthly production of 2.000 skirts. Example of the table: Type Unit Standard of consumption Planned consumption

Tasks:

Biovec, K. Pehled uiva k maturitn zkouce z ekonomiky. Fortuna, 2004. ISBN 80-7168-747-2. varcov Jena, ing a kolektiv, Ekonomie, strun pehled. Ing. Jena varcov, Ph.D., CEED nakladatelstv a vydavatelstv, 2006. ISBN 80-903433-3-3.Klnsk Petr, Munch Otto, Ekonomika pro obchodn akademie a ostatn stedn koly 1-4. Fortuna, 2003, ISBN 80-7168-862-2.

Bibliography