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manual on management of drugs

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ANNEXURE – III<br />

Lead Time:<br />

Normal lead time <strong>of</strong> procurement by SPC<br />

Approximate lead time required by SPC for normal imports under MSD<br />

orders are;<br />

a) Department Tender Board - 11 m<strong>on</strong>ths<br />

b) Ministry Tender Board - 11 - 12 m<strong>on</strong>ths<br />

c) Cabinet Appointed Tender Board (CATB) -14 - 15 m<strong>on</strong>ths<br />

However orders coming under the purview <strong>of</strong> the Ministry Tender Board and<br />

CATB some times require a much l<strong>on</strong>ger lead time than above.<br />

Compositi<strong>on</strong> <strong>of</strong> lead time <strong>of</strong> imports by SPC<br />

Durati<strong>on</strong> in weeks<br />

1. Preparing specificati<strong>on</strong>s and obtaining<br />

D/MSD approval 04<br />

2. preparing tender document 02<br />

3. Time for suppliers to quote 06<br />

4. Scheduling <strong>of</strong> <strong>of</strong>fers 02<br />

5. Evaluati<strong>on</strong> <strong>of</strong> <strong>of</strong>fers 05<br />

6. Tender Board decisi<strong>on</strong> 02<br />

7. Opening letters <strong>of</strong> credit 02<br />

8. Obtaining raw material 08<br />

9. Manufacturing time with DHS markings 10<br />

10. Quantity c<strong>on</strong>trol 02<br />

11. Packing and obtaining shipping space 03<br />

12. Shipment time 01<br />

13. Clearance time 01<br />

Total Number <strong>of</strong> Weeks<br />

48 (11 m<strong>on</strong>ths)<br />

Re-Order Level (ROL):<br />

Usage in the lead time <strong>of</strong> supply<br />

Ec<strong>on</strong>omic Order Quantity (EOQ):<br />

Specially for bulk items<br />

EOQ = √ 2AB /CI<br />

A- Annual requirement for usage<br />

B- Marginal cost <strong>of</strong> ordering an item<br />

C- Purchase unit price<br />

62

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