HOSPITAL INVENTORY MANAGEMENTDr A PrakashSr Professor, Health ManagementNatonal A!a"em# of In"an Ral$a#sVa"o"ara MANAGEMENTMenMa!hneMone#Mn%tes Material MATERIAL MANAGEMENT&a'tal Goo"s&ons%ma(les ) In*entor# Management+ Me"!al Items ,Dr%gs - &ons%ma(les.+ Ho%se kee'ng Items INVENTORYIn*entor# ) A 'h#s!al reso%r!e that a frm hol"s n sto!k $th the ntent of %sng or sellng t or transformng t nto a more *al%a(le state/In*entor# S#stem ) A set of 'ol!es an" !ontrols that montors le*els of n*entor# an" "etermnes $hat le*els sho%l" (e mantane", $hen sto!k sho%l" (e re'lenshe", an" ho$ large or"ers sho%l" (e/ 0HY INVENTORYTo a*o" sto!k o%tTo he"ge aganst f%t%re1n!ertantes of "eman"1n!ertantes of s%''l#1n!ertantes of !ostE!onomes of s!aleOr"erng !ostTrans'ortaton !ostP%r!hase !ostIn"e'en"en!e of 'lannng HO0 0E GET INVENTORYDr%gs - &ons%ma(lesAnn%al Me"!al In"ent2%lk P%r!hase at D*sonal Le*elLo!al P%r!hase ,Retal P%r!hase.&a'tal Goo"sM - P/D3+II - DR30orks Programs &OST O3 INVENTORYOr"erng &ostA!4%ston &ost&arr#ng &ostStorage &ostPlferege0astageE5'r#Shortage &ost 3INAN&IAL IMPLI&ATIONS678 + 698 of Hos'tal 2%"get1'to :;8 n S%'ers'e!alt# Hos'tals&arr#ng &ost ) 698 to ng the !ost of 'ro*"ng an a"e4%ate le*el of !%stomer ser*!e/ O2=E&TIVERght MateralRght ?%alt#Rght ?%antt#Rght Pr!eRght So%r!eRght TmeRght Pla!e ORDERING METHODSE!onom! Or"er ?%antt#2%lk Or"erng $th Tme+'hase" Del*er#35e" Or"er ?%antt#35e" Or"er Pero" S#stemPro(a(lt# (ase" Tra"e+off Matr5S'e!%lat*e &ons"eratons=%st ) n ) tme S#stem2as! E!onom! Or"er ?%antt# ,EO?.@Prn!'lesAss%m'tons of the (as! EO? mo"elOnl# one 'ro"%!t s n*ol*e"Ann%al "eman" re4%rements are kno$nDeman" s s'rea" e*enl# thro%gho%t the #ear ,!onstant "eman" rate.Lea" tme "oes not *ar#Ea!h or"er s re!e*e" n a sngle "el*er#There are no 4%antt# "s!o%nts6:EO?@ !#!le n*entor# le*els ,gra'h!al.Time TimeInventory Level Inventory LevelOrderOrder Quantity Quantity(large Q) (large Q)Time TimeInventory Level Inventory LevelOrderOrder Quantity Quantity(small Q) (small Q)Smaller Q more orders, but lower inventoryTotal,Ann%al. Or"erng &ostAnn%al N%m(er of&ost 'erOr"erngA Or"ersB Or"er&ostN%m(er ofA Ann%al Deman"Or"ers Lot S>eS 5 ?D O&=Ann%al Hol"ng ,&arr#ng. &ostHolding costA A*erage In*entor#5 Ann%al Hol"ng &ost 'er 1ntAverage CYCLE inventory A Lot S>e 7Holding cost per unit A 8 Hol"ng &ost B 1nt &ostH x2Q HC=C D SQDHQTC + + =22as! E!onom! Or"er ?%antt# @ Mo"elTotal Annual CostTC : Total annual costD : Total annual demandQ : Quantity orderedH : Unit holding costS : Order or set-up costC: Unit cost (priceAnn%al Hol"ng &ost Or"er of set+%' !ost Total a!4%ston !ostTOTAL COSTTOTAL COSTQA!T"TY #!"TS$Costs %EOQ EOQTOTAL A!!AL O&'E& COSTSTOTAL A!!AL HOL'"!( COSTS2as! E!onom! Or"er ?%antt# @ Prn!'lesE/O/?/ A Mnm%m Total &ostThe total !ost !%r*e rea!hes ts mnm%m $here the !arr#ng an" or"erng !osts are e4%al/&ost Hol"ng Ann%al&ost. Set%' or "er Deman".,Or 7,Ann%alAH7DSA EO? REORDER POINT0hen to 'la!e the or"erCIntro"%!ng Lea" Tmes)ro*ile o* "nventory Level Over TimeQuantityon +andQ&eceive order)laceorder&eceive order)laceorder&eceive orderLead time&eorderpoint'emandrateTime SA3ETY STO&D&hangng Lea" Tme&hangng Deman" MAGNIT1DE O3 INVENTORYA*erage Hos'tal ) E;;;+F;;; temsM%lts'e!alt# Hos'tal ma# ha*e %'to