Main Goal 2: Effective and Efficient Inventory System
Goal 2.1 Maintain an efficient and effective stock control
The system controlling the quantity and quality of the stock at reception from suppliers has been improved; the next goal to be covered is controlling the hospital’s stock on hand and trying to avoid stock shortage problem.
Threat: inaccurate inventory record
Inaccurate inventory record can cause a shortage in inventory. The level of drugs could be either understated or overstated.
Control
We are proposing to establish a perpetual inventory control system and conduct periodic physical counts on inventory. To be more specific, amount of inventory should be physically checked against the amount recorded. This should be done
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Threat: Theft of inventory
Having the inventory being stolen can cause a shortage of supplies, especially those highly desirable drugs, such as painkillers, which might also have negative impacts on the patient’s recovery. As mentioned in the background, painkillers are often at high risk of theft.
Control
Firstly, medicines should be locked in the storage room. Keys need to be carefully kept. When doctors write prescriptions, they have to note the exact quantity of drugs and sign their names on that prescription. The pharmacist can only release the medicine based on doctors’ prescription. Quantity and variety of medicine taken out should be recorded and signed by the pharmacist. Moreover, a supervisor should be assigned to check the quantity on the prescription everyday, if anything goes wrong, they can trace back to individuals by signatures, which assists in more efficiently managing the hospital (Felsted,2010).
Goal 2.4 Labor Control
A lot of our designed controls involve human resources. To ensure the controls run appropriately, it is essential to distribute corresponding training to the
Consolidate and standardize inventories- The variety of items ordered and stocked in the surgery departments results in an overabundance of different products with inconsistencies in sizes and packaging. In the case of this hospital having multiple surgery departments supplies are scattered, and even the same supplies stocked in the departments. This causes inventories to require extra time for assembling materials disbursed throughout the surgery department. Damaged or outdated stock on shelves could be caused by overstocking and hoarding of supplies and instruments. "Cost containment pressures and quality improvement initiatives have prompted healthcare organizations to consolidate these inventories, standardize on certain supplies,
Regarding Ross Stores Inc.’s first issue, this organization needs to develop an electronic system to store their entire inventory. The inventory should be sorted by how much of a certain product each store has and which store has what item and by the category of each product. By having an electronic system for inventory in place, this will then reduce time for employees when giving information to customers on whether or not they have a certain product because they will not have to go physically to view the product. Not only will this create better customer satisfaction but it will also increase
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.
Everyday, I first walking through the door of pharmacy, I saw a front counter on the right where pharmacist and pharmacy technician communicated with patients and MCH health care employees through the window. This is where pharmacist and pharmacy technicians also gave medications to patients and MCH healthcare employees. Then, there is a section for inhalers and eyes medications on the left and it’s
Because I did not expect the demand to be stable at 4, my inadequate order quantity lead to backlogs to fulfill the retailer’s request. When I started to backlog the demand, I decided to increase my order quantity to eliminate backorders and still have an inventory policy that minimizes the total cost. However, there was an unexpected delay in the fulfilling of my order from the distributor. The amount of beer that I requested couldn’t be delivered and I received shortages in my deliveries in the second and the third quarters. Because the demand was stable and not decreased when my inventory level was under zero, my effective inventory got even more negative. When I started to receive my initial requests from the distributor which were in high quantities to effectively minimize the backlog cost, my effective inventory started to approach zero
The age old dependency on stockpiling medications and Class VIII supplies with a 68J placing orders needs to be revised. Most hospitals are limited in space and wish they could double the size of the storage room to increase the inventory of just in case emergencies. The problem that can occur is
Medication errors are one of the most common types of medical errors that occur in the health care industry. A medication error is any preventable event that may cause or lead to inappropriate medication use or patient harm while the medication is in control of the health care professional, patient or consumer (NCCMERP, 2008). Medication errors result in high financial costs for health care institutions and adversely affect the patient’s quality of life (Choo, 2010). It is the responsibility of the nurse and all members of the health care team to provide thorough medication safety handling to ensure the chances of a medication error are lowered.
Various factors play a part in why drug shortages occur, some instances are inevitable. For instance, when a natural disaster hits, protecting drugs, are equally important as protecting lives, which in many cases are impossible. In this event, thousands of drugs can be damaged and ruined. In addition, other shortages occur from the production from an offset of supply and demand, which accounts for an approximated 13% of
Inventory management is designed to allow a smooth flow of the materials and prevents any major stock outs. Inventory management ensures that the availability of the materials has the sufficient amount needed and minimize the total investment in inventory.Each item in inventory represents money thaty a company has spent and treated as an expese until the material becomes a purchased product. Since many organizations have money tied up in their inventory; it is pertanient that the inventory is managed in a very efficient and effective manner in an effort to avoid unnecessary investments. In the event that an organization has poor inventory management; excessive stock or not enough stock can greatly affect the organizations profit and reputation. For example, having excessive stock can cause loss revenue due to products not selling quick enough and a shortage of stack can cause an organization to lose business. As the example shows; proper inventory management is a must. In order for an organization to be successful in its management of inventory the balancing of inventoy costs with the benefits that is associated with the inventory so that the organization can turn over their volve and obtain the maximum amount of profit. While visiting some local businesses; the managers expplained what they did to control their inventory. These businesses spoke of direct costs associacted with inurance, storage space, taxes and the money that had to be tied up in inventory and how they had to be properly managed and controlled. Others discussed strategies that have made them successful such as increase thieir inventory turnover, maintaining the minimum amount of inventory that keeps them from not sacrificing their performance or delivery of goods, and purchasing the inventory in larger volumes to obtain overall lower purchasing costs. The constant changes in the financial market along with the type of stock vary with the
It is important to determine usage rates for all inventories, to keep track of the usage and improve the ordering
Many retailers use point of sale terminals that keep track of every item sold its original cost, and its final selling price. The rest of the retailers face a problem of not knowing the cost value of their inventory at one time. These retailers with either computerized or manual systems can use retail inventory method.
It is undeniable that Inventory Management is an important key to success at Walmart this paper will discuss the two main methods of Inventory Management used by Wal-Mart: Material Requirements Planning and Just-in Time. Next we write about the technical means of keeping track of inventories like RFID tags. We conclude with discussing how
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 can be explained as any assets that are held for future use or sale. Inventories are held for a variety of reasons, such as customer demand for end items, smoothing production, a hedge against stock outs and price increases, and economical purchasing. It is very costly and wasteful to keep large inventory on hand. The new technology and application quantitative tools and techniques for inventory management have permitted decrease in inventory. Top management needs to understand the role that inventories have on a company’s financial performance, operational efficiency, and customer satisfaction and strike the proper balance in meeting strategic objectives. They are responsible in keeping sufficient inventories to meet demand of the customers by sustaining the lower cost as possible. Inventories are required for a business to operate efficiently and effectively. Inventory management is a very significant part of basic operations activities. Most businesses and general organizations obtain most of their revenue through the sale of inventory.
There are various reasons for incorrect records. (Among the reasons of inaccurate inventory recordkeeping are products coding mistakes, counting mistakes, taking a wrong product from stocks, not keeping record of defective inventories, communication lags leading to late update, etc.).The more capital is invested towards information systems, the lesser will be the potential...