As a result of successfully completing this chapter, students will be able
to:
Review the importance of effective inventory management, and
explain basic inventory management concepts
Explain common inventory replenishment systems:
Par-level systems
Automated supply replenishment systems
Exchange cart systems
Requisition systems
Case cart systems
STAT orders
3. OBJECTIVES
As a result of successfully completing this chapter, students will be able
to:
Review the importance of effective inventory management, and
explain basic inventory management concepts
Explain common inventory replenishment systems:
Par-level systems
Automated supply replenishment systems
Exchange cart systems
Requisition systems
Case cart systems
STAT orders
CSSD PRESENTATION PAGE 01
4. Review the use of bar codes and radio frequency identification to
track inventories
Describe procedures for effectively distributing supplies to clinical
units and the operating room
Review important inventory management concepts
Perpetual inventory systems
Alternative inventory control methods
Total acquisition costs
Inventory turn rates and service levels
Inventory information systems
Space utilization
CSSD PRESENTATION PAGE 02
5. TERMINOLOGY
Inventory- Reusable equipment and consumable items
that are used to provide healthcare services for
patients
Consumable Inventory- Items which are purchased,
used and discarded
Reusable Inventory- Assets that are relatively
inexpensive that such as medical devices and
sterilization containers that can be reused as
healthcare services are provided to patients
Stock out- A condition that occurs when inventory
items that are needed to provide healthcare services to
patients are unavailable
Capitol Equipment- Assets that are relatively
expensive such as sterilizers or washers that require
significant advance planning for purchase
Asset- Something of value that is owned by an
organization or person
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8. INVENTORY
Must be managed to prevent Stock Outs
Must be managed to provide equality patient care
Must be managed to control operating costs
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10. Consumable products found in Central Service and other
storerooms, warehouses, and satellite storage areas
Can be counted as an asset on the facility’s balance sheet (financial
statement)
Consumable products found in user areas such
as surgical locations and labs. These items have
usually been expensed (charged) to the user
departments are stored in unofficial location
INVENTORY
MANAGEMENT
CONCERNS
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OFFICIAL INVENTORY
UNOFFICIAL INVENTORY
12. Too much cash invested in excessive stock levels
May need to borrow $ to pay suppliers
More storage space needed
Greater Risk of Damage, Loss, Obsolescence or pilferage/theft
Requires more time to Manage
TOO MUCH
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Too Much/Little Inventory
TOO LITTLE
Supply Shortages
Emergency Purchases
Negative Effect on Patient Care
Leads to Hoarding in User Departments
Frequent Handling to Move Inventory to Point-of-use
13. Facility inventories of consumable
supplies represent an average of 50
days’ usage requirements
Facilities typically have a greater
value of unofficial inventory than
official inventory
Facilities spend approximately 30%
of their operating budget on
consumable supplies
CSSD PRESENTATION PAGE 11
Inventory Facts: