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In Pharmaceuticals we are buying Packing Box for Tablets or Syrup on weight basis and paying on no. basis, why?

a) We are not able to count the Packing Box

b) The quantity is same by weight or in numbers

c) Your practical method please

d) Best Advice for this

 

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Question added by Malik Khalid Mahmood , Regional Finance Manager , Leosons International FZ LLC
Date Posted: 2015/03/02
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

As different packets are of standard size, it is easy to know by weight how much stock of the packets are available in numbers.  Same way if the number of packets are exact requirements for the available stock of pharmacy products, you have control over the stock also.

Similarly you may aware of the material cost of packaging required for each product and also can have economy over purchase of packaging materials, because only negligible wastage occurred per order as it comprises of different sizes of packets.

 

It wont make any difference, if the payments are made on the basis of Weight or numbers, if quantity ordered are based on reducing material wastage in a specific job order.

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

correct answer is B 

THANKS 

taha amer
by taha amer , Finance Manager , Arabia ‎Holding

The correct answer is

b) The quantity is same by weight or in numbers

Sara Naeem
by Sara Naeem , Trainee Finance officer , Wah Brass Mill

Thank you Sir for your invitation and extremely Sorry for late reply I totally agree with Sir Krishna.

Md Abdul Rahim Khan
by Md Abdul Rahim Khan , AGM Finance , Joy Group

Ans. Always maintain Medicine box''s quantity weight and numbers same.

 

Ramesh Potharla
by Ramesh Potharla , CHIEF ACCOUNTANT , AL MUQADIMAH TRADING LLC

Answer B would be correct, because calculations would be made that can be figured out the cost of material can be equal in way of number of units or weight.

 

 

Nouman Mustafa
by Nouman Mustafa , Finance Manager (Financial Planning & Reporting) , Saudi Arabian Airlines

Weight in gm (grams) is actually the dose that  a patient has to intake and as such cannot be used for price setting as per the customary practice in different parts of the world. Therefore the only way to setup the price is in terms of no.

IMRAN ALI MOHAMMED
by IMRAN ALI MOHAMMED , Accounts Officer , M/s. Euro Glazing Ltd

 

I will try to explain it in a simple way :- 

Its a general practice in many manufacturing industries to buy the packing materials on weight basis, after which they require atleast some sort of  modifications at their end to meet their particular requirements especially in FMCG sector, which in turn will lead to rejection of some packing material. Some times it may be due to inferior quality or blur printing or description missing. Those rejected ones are sent back to the supplier and the payment is made on quantity basis. Here the supplier doesn't mind taking back the inferior ones as it can be recycled again and also being a regular supplier on a long term doesn't effects him.

 

Its a win-win situation for both the supplier and the manufacturer. 

Mohammed Salim Allana
by Mohammed Salim Allana , Compliance and Assurance Manager , United Arab Bank

I fully agree with Mr. Venkitaraman.

Tamer Elbeshbishy
by Tamer Elbeshbishy , Financial and Administration Manager , Muscat Towers Holding Group

In Pharmaceutical Industries, we found a stable relationship between the Weight and the Numbers of each types of the drugtos products. Using the Numbers is mandatory as to be released to final consumer. However using numbers is  for the business, and  payment process

MALIIK SOHAIL ABBAS
by MALIIK SOHAIL ABBAS , ACCOUNTS MANAGER , AL RAWDAH GREEN SWEET WATER

malik sb i am very thank ful to you in my opiion the answer B is the correct answer

 

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