Best Practices in Inventory Management in Healthcare
In the majority of healthcare organizations, materials (including pharmaceuticals and expendable supplies) comprise the largest portion of the non-labor costs in the operating budget – thereby making it deserving of our focus and study. Correct management and control of your inventory has a direct and significant effect on your financial operating costs, and therefore, the total net income of your organization.
The process of materials management (the control of an organization’s inventory, services, and equipment from acquisition to disposition) allows for cost control and also allows the organization to operate correctly – having enough of each needed supply (medical, administrative, housekeeping, and/or clerical) on hand at the precise time it is needed. Once you’ve read the assigned background readings, as well as completed some peer-reviewed research of your own, please answer the following:
What are the best practices in inventory management that healthcare managers should implement and be consistent in using?
How are each of the four methods of valuing inventory used by healthcare organizations?
Choose one expendable item used in the healthcare setting, and show the value calculation for 500 of that particular item, using one of the methods of inventory valuation. Investigate a current-day cost of the expendable item to make your calculations as accurate as possible.
How do we best prepare for uncertainties in our inventory, and what would a correct re-order point be for expendable medical supplies?
SLP Assignment Expectations
Conduct additional research to gather sufficient information to support your analysis.
Provide a response of 3-5 pages, not including title page and references
As we have multiple required items to be addressed herein, please use subheadings to show where you’re responding to each required item and to ensure that none are omitted.
Support your responses with peer-reviewed articles, with 2 to 3 references. Use the following sources for additional information on how to recognize peer-reviewed journals:
How to Recognize Peer-Reviewed (Refereed) Journals
Evaluating Internet Resources
You may use Purdue Owl to assist in formatting your assignment
BHA427 SLP3
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Introduction
Materials (e.g., pharmaceuticals and expendable supplies) constitute the most significant share of non-labor costs within the operating budget in many healthcare organizations. On this premise, inventory management becomes a crucial focus of study in healthcare. Correct inventory control and management directly and substantially impact the organization's financial operating costs and, ultimately, the total net income of the facility. The materials management process (control of an entity's inventory, services, and equipment from acquisition to disposition) bolsters cost control and operational efficiency. Having the required supplies at the right time and place is crucial to prevent operational issues. This will include the best inventory management practices for healthcare organizations, inventory valuation methods used in healthcare organizations, and a calculation of inventory valuation based on the FIFO approach. The paper will also include the best practices for preparing for inventory management inevitabilities and establishing the appropriate reordering point for expandable healthcare supplies.
Best Practices in Inventory Management
In the dynamic and fast-paced world of healthcare, inventory management plays a significant role in guaranteeing seamless supply chain operations, cost efficiency, and the best patient care quality. Inventory management is critical for healthcare organizations, particularly in bolstering operational efficiency (Balkhi et al., 2022). Based on this background, it is essential to implement best practices to optimize inventory management for healthcare organizations. Automated inventory management is a crucial best practice. Automatic medical inventory tracking and management in modern healthcare is the gold standard. Hospital inventory management automation improves healthcare supply