Supply Chain Management main glossary

This is a glossary of key terms used throughout the site.

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M&E plan

A monitoring and evaluation plan is a comprehensive planning document for all monitoring and evaluation activities within a program. The plan documents the key M&E questions to be addressed: what indicators will be chosen, how often and where will the data be collected, what are the baseline values and what will be the target values, how will the data be analysed and interpreted, and to whom and how often will reports be developed and distributed.

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Marketing authorisation

Marketing authorisation for a medicine or medical product (also called product license or registration) is granted once the safety, efficacy and quality of a medicine has been established by a National Regulatory Authority (NRA). With this authorisation, the product can be imported, distributed and sold in the country.

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Maximum reorder level

The maximum reorder level is the level above which the total inventory of a product should not exceed. This level is determined by the product shelf-life, amount of capital available, storage space, possibility of loss, the cost of maintenance, and fluctuation in prices and seasonality.

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Minimum reorder level

The minimum reorder level (MRL) is the minimum stock quantity that should be available at all times. It 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 by the consumption pattern and the lead time, following the formula: MRL = (Average monthly consumption * lead time in months) + buffer stock.

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Monitoring is the routine process of data collection and measurement of progress of an activity or program. It involves tracking what is being done and routinely looking at the resources used (type and level), the activities conducted, the products and services generated, their quality, and their outcome.

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