Stock card, reorder point and bid analysis

Correct balances: 1,200; 950; 770; 1,370; 1,050; 900; 625; 1,025; 715; 740; 450; 190; 690; 450; 245. Check: opening balance 1,200 + receipts 1,525 (600 + 400 + 25 + 500) - issues 2,480 = 245.

Errors: (1) on 10/02, 625 + 400 = 1,025, not 1,052 (transposed digits, +27); (2) on 21/02, the return of 25 kits was subtracted instead of added (-50). Net effect: -23, which explains the recorded balance of 222 instead of 245.

Real variance: 238 counted - 245 theoretical = -7 kits missing. With the wrong balance, one would have believed there was a surplus of 16 kits.

Weaknesses: issue of 290 kits without a waybill or signature, on a verbal request (WB-007 is missing from the sequence); no check of the calculations by a third party. Measures: correct the balances with a dated and signed entry (no crossing out), regularise the 28/02 issue with a WB signed by the project manager and the corresponding distribution list, investigate the 7 kits and write them off only after approval, forbid any issue without a WB, reconcile the stock card with the inventory every month.

AMC = (issues - returns) / 3 = (2,480 - 25) / 3 = 818.3 kits/month.

Reorder point = AMC × lead time + safety stock = 818.3 × 1.5 + 818.3 = 2,046 kits. The stock (238), even with the order in progress added (538), is far below it: an order must be placed immediately and the monitoring of the reorder point reviewed.

Stock-out: 238 / 818.3 × 30 ≈ 9 days, i.e. around 9 April, before PO-044 arrives (15/04). The 300 kits of PO-044 then cover about 11 days (until around 26/04).

Quantity to order = AMC × (period covered + lead time) + safety stock - available stock - orders in progress = 818.3 × (3 + 1.5) + 818.3 - 238 - 300 = 3,963 kits, rounded to 4,000 (80 cartons of 50). The request for quotation for 4,000 kits is consistent.

A is rejected for technical non-compliance (prices are not compared on different specifications); C is ineligible, as the document is required on pain of rejection: it cannot be requested after bid opening without breaching equal treatment. Recommendation: award to B for XAF 75,600,000, the only eligible and compliant bid, which also offers the shortest lead time, useful given the stock-out expected on 9 April. As the amount exceeds XAF 50,000,000, the minutes are signed by the three committee members and approved by the country director; each member signs a conflict of interest declaration.

Subject: Maroua hygiene kits, stock-out expected on 9 April, decisions required. "Hello, the 31/03 inventory gives 238 kits against a corrected theoretical balance of 245 (two calculation errors on the card, now corrected): 7 kits are missing and a check is under way. An issue of 290 kits on 28/02 without a waybill is being regularised. With consumption of 818 kits per month, the stock-out will occur around 9 April, before PO-044 arrives (300 kits, 15/04). I propose: 1) to award the order for 4,000 kits to supplier B (XAF 75,600,000, delivery in 3 weeks), committee minutes attached; 2) to request a stock loan from the Garoua base or a partner for the period from 9 to 15 April; 3) failing that, to postpone the Koza distribution by one week. Thank you for your decision before Thursday."