Anglicky v odborných předmětech "Support of teaching technical subjects in English “

1. Anglicky v odborných předmětech"Support ofteachingtechnicalsubjects in English“ Tutorial: Business Academy Topic: Business supplying Prepared by: Ing. Marcela Zlatníková Projekt Anglicky v odborných předmětech, CZ.1.07/1.3.09/04.0002 je spolufinancován Evropským sociálním fondem a státním rozpočtem České republiky.

2. Supply • 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.

3. Supply provides the following tasks: • 1/ detection of material needs • 2/ negotiations with suppliers, studying offers • 3/ providing suppliers • 4/ concluding contracts of sale • 5/ making deliveries • 6/ receiving material at the warehouse, its control and registration • 7/ dispensation and transfer of material to the place of consumption

4. Supply planning • 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

5. Material balance • 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 units • EquationIS + P = C + FS IS......Initial supply P........planned purchase C.........total consumption FS.......final supplyor supply normative

6. Calculation of the amount of stock(standardisation of stock) • Is determination of average (optimal) supply of material, which ensures the company continuity of production at the lowest cost • Time Standard of Stock (TSS) – how many days the average stock lasts • Delivery Cycle (c)–number of days between two suppliers • Insurance Stock (i) – how many days the supply in stock should withstand when the delivery is delayed • Technical Stock (t)– number of days which are needed to modify the material before it is consumed

7. Important formula Time Standard of Stock: TSS = 1/2c + i + t Standard of stock in natural units: SS = TSS * c c…average daily consumption of material (c= C/360) Normative (N) – in monetary units shows which quantity id tied up in company stock N = SS * Kč

8. 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 rate Tells us how many days one turn lasts Turnover rate (TR) = average stock/ total consumption Shows how many times stock turns over within the monitored period

9. Tasks: • 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: TypeUnitStandard of consumptionPlanned consumption

10. Bibliography • Biňovec, K. Přehled učiva k maturitní zkoušce z ekonomiky. Fortuna, 2004. ISBN 80-7168-747-2. • Švarcová Jena, ing a kolektiv, Ekonomie, stručný přehled. Ing. Jena Švarcová, Ph.D., CEED nakladatelství a vydavatelství, 2006. ISBN 80-903433-3-3. • Klínský Petr, Munch Otto, Ekonomika pro obchodní akademie a ostatní střední školy 1-4.Fortuna, 2003, ISBN 80-7168-862-2.