Supply Chain Management main glossary
This is a glossary of key terms used throughout the site.
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Marketing authorization (registration/product license) is granted once the safety, efficacy and quality of a medicine has been established by the National Regulatory Authority (NRA).
Maximum reorder level
The maximum reorder level is the level above which inventory levels should not exceed. This level is determined by the product shelf-life, amount of capital available, space, possibility of loss, cost of maintenance (stores), and fluctuation in prices and seasonality.
The precise calculation or formula that provides the value of an indicator.
Minimum reorder level
The minimum reorder level (MRL) is the minimum stock quantity that should be available at all times and indicates when a request for additional stock must be placed. It is also known as re-order point and triggers an action by the store personnel to submit a requisition to replenish the stock. The MRL is usually determined based on consumption pattern and lead time.
MRL = (Average monthly consumption * lead time in months) + buffer stock
If you use lead time in weeks, then your average consumption should also be in weeks.
Monitoring is the routine process of data collection and measurement of progress toward program objectives. It involves tracking what is being done and routinely looking at the types and levels of resources used; the activities conducted; the products and services generated by these activities, including the quality of services; and the outcomes of these services and products.