Healthcare organizations have many different reason to manage their inventory. The key aspect of any management is to be effective. Having an effective inventory management system can create quite a few benefits for businesses. Let us explore this theory.
Why should businesses use an inventory management system you may ask?
One advantage to having an inventory management system is that it is an effective way to control inventory. The costs of using this system also outweigh the costs of implementing it. The size of the organization typically determines which inventory system is best. Some inventory systems can range from a single spreadsheet and others will use a third party application.
A proper inventory system allows the organization
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It should be able to keep up with the ever changing usages that happen throughout the healthcare facility.
The key aspect before jumping into any system or decision is to also understand the risks involved.
When it comes to choosing the right inventory management system there a many options. Many health service organizations are now using the just in time system. It is also gaining popularity in all industries. Healthcare facilities are facing tighter profit margins. This is tied to the costs of care and cuts in reimbursement rates. More organizations are turning to Just in Time inventory managements system to keep supplies lean and costs low.
The first step is to choose a method that is right for the data you need to record. There are many software options at reasonable costs. If you already have a system in place, take the time to evaluate it’s effectiveness to ensure it is the right method for you.
Next you want to perform a full physical count of your existing inventory. An important component in any system is to ensure the data entered in the beginning is accurate. For example, if you have 10 bottles of ibuprofen in the stock room then the inventory count entered should equal the same amount. If your inventory counts are wrong, the inventory system will not function efficiently to provide the best
The American Red Cross, a non-profit organization is implementing a new industry standard system called BioArch to track and process its blood products. The new infrastructure will improve the quality of its blood products since employees will be able utilize products based on inventory and age. The system also improves the product tracking process currently in place and it promises to improve customer relations since most competitors are already using the BioArch system. Currently, systems regionally are different and therefore inventory is kept separate. This creates challenges in meeting customer demands and it increases manufacturing manual processes.
Once they develop and implement this inventory control system, inventory records are going to be upheld truthfully and that they will get the accurate standing of the inventory up-to-date. In order to maintain the steady continuous supply for production need... ... middle of paper ... ... ory holding costs, ordering costs, and shortage costs, and have a classification system for inventory items. In conclusion, while reading the case study, I saw much disorganization throughout the company’s entire system.
Clear Lake Hospital is a not-for-profit hospital in Iowa. It operates 230 beds and provides acute care. The area, which the hospital is located, is a summer destination with vacation homes and fishing activity. The hospital carries more than 10,000 different items of inventory. These items have different price, order lead times and stockout costs. The new hired Chief Financial Officer, Julio Ruiz, believes that the system used for maintaining the inventories results carrying excess inventories. He bases his assumption on the fact that when the hospital faced occupancy rates near to 100 percent, incidents or even possibility of stockout did not occur.
Risk is something that generally entails the potential of loss, and also the potential of gain. A risk is undertaken when the end result is considered to be greater than the potential damage that could be done in the event that the end result is not reached. The decision depends upon the level of fear of the individual and how likely they feel the opposing development inherent within the risk to occur. Individuals in today’s society go against their self-control and voluntary perform risk to see how far they can push their limits (Lupton, 1999).
Launched by Jeff Bezos, the Amazon.com website started in 1995 and is today considered as one of the most prominent retail website on the internet with a record turnover of US$ 14.87 billion in 2007. Jeff Bezos’s intention was to create an internet based company with the most dedicated product portfolio on the internet where customers could find anything they might want. Amazon’s success is based on technology, services and products (Jens et al., 2003).
The high flow rate of the Emergency Room causes the hospital staff to make clerical error in charting in CHS, costing the hospital lost revenue from uncharted captures of Class VIII and medications during procedures. Point-of-use cabinets are a solution that helps hospitals and its staff to increase charge captures and reduce nursing administrative time on CHS. The point-of-use cabinets require the user to input the patient’s name and identity to acquire mediation or Class VIII. According to Omnicell (N.D.) This point-of-use system can result in “45% increase in charge capture” of lost revenue from possible oversight when the charting is done after the patient being
All the risks must be explained so that the individual is in a situation to make a judgment as to whether or not they wish to go ahead. You need to make sure that the person has full information about:
The just-in-time (JIT) inventory system was developed in Japan after World War II, in an effort to control costs during fiscally challenging economic times (Waguespack and Cantor, 1996). The challenge that faced many Japanese companies in the post-War era was to find a way to meet the needs of customers and businesses while utilizing as few resources and as little capital as possible. The Japanese developed these set of techniques in order to control production, limit unnecessary products and reinvest the valuable capital left from the savings back into the business structure (Waguespack and Cantor, 1996). Much of the success of many Japanese corporations over the past four or five decades has been was linked to the principles of JIT (Chhikara and Weiss, 1995).
A risk can be involved with so many things whether it’s good or bad. It sometimes results in an expected outcome or just an event that is horrible and unpredicted. It is important in life to take chances
Inventory management is a method through which a business handles tangible resources and materials to ensure availability of resources for use. It is a collection of interdisciplinary processes including a full circle of the demand forecasting, supply chain management, inventory control and reverse logistics. Inventory management is the optimization of inventories of manufactured goods, work in progress, and raw materials. According to Doucette (2001) inventory management can be challenging at times; however, the need for effective inventory management is largely seen more as a necessity than a mere trend when customer satisfaction and service have become a prime reason for a business to stand apart from its competition. For example, Wal-Mart’s inventory management is one of the biggest contributors to the success of the company; effective and efficient inventory management is of critical importance.
In addition, at the time, the economy was doing great, therefore, using the push system to stock pile inventory was acceptable. However, during the dot-com bust of the 2000’s, its sales and the demand for its products greatly decreased. Unfortunately, during this time, Cisco discovered that it possessed an abundance of inventory, and, wrote off more than $1 billion in inventory. Consequently, the company learned that acquiring inventory in anticipation of market demand, and not factoring in the human element of its business increased its risks of failure. Obviously, Cisco wanted to meet its customer’s demands, however, the problem was that it held more inventory than what the customers were demanding. Nevertheless, afterwards, it knew that it needed to adopt a new, more efficient approach to inventory. Therefore, Cisco had to reevaluate its supply chain system and seek input from IT, customers, suppliers, and finance. Further, by including input from these sources, Cisco adopted the more efficient pull system. The pull system, is dependent upon producing smaller repeating orders. Rather than the push system, which relies on larger less repeating orders. Effective inventory management, when administered correctly, can reduce and keep the inventory to a more desired level. In addition, Cisco discovered that inventory management can reduce inventory levels, enhance cash flow and reduce overall
According to Srinidhi and Tayi (2004), companies that are flexible enough and are able to change from a JIT system to a traditional inventory system will have a competitive advantage over other firms who do not switch. In such uncontrollable environments, the major benefit of JIT becomes a handicap with the increase in delivery times and the added data handling and coordination required in such times. This leads to a decrease in quick response time, which ultimately leads to increase in costs to the firm.
A lot of people debate, argue and even fight about whether or not one should take risks in life. As for me, I think there can’t be only one answer or solution to this question, for there are different types of risks and consequences that person might pay for. Health, money, job, opportunity and a lot more including even someone’s life, might all be associated with risks. My friend goes to Thunder Valley Casino and spends up to two thousand dollars every month. One’s success in life can depend on how well a person interprets reality and understand whether or not it’s worth to take a certain risk.
Inventory management can enhance the efficiency in operation of the supermarket. Supermarket must ensure that the correct levels of inventory are being maintained throughout the store, and that merchandise is purchased at the best price point as possible. Holding too much inventory on hand generate costs like carrying costs. Whereas having too little inventory on hand makes customers dissatisfied and it leads to declining
Inventory management is defined because a science mostly established art of guaranteeing that just enough inventory share is command with a company to fulfill demand (Coleman, 2000; Jay & Barry, 2006). it's mostly regarding specifying the size and keeping of stacked product. Inventory management is usually needed at completely distinct spots within a service or within multiple spots of a supply network to guard the standard and planned course of production up against the random disruption of running low upon materials or product. The scope of inventory administration also concerns the good lines between replenishment period interval, carrying costs of inventory, asset management, investment forecasting, inventory valuation, selection visibility,