Inventory Management

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					Inventory Management
The Lab Quality System
       Organization    Personnel      Equipment



                          Process
       Purchasing         Control     Information
                       (QC & EQA) &
       & Inventory       Specimen
                                      Management
                        Management




       Documents      Occurrence
                                      Assessment
       & Records      Management



         Process       Customer        Facilities &
       Improvement      Service          Safety


                                                      2
Learning Objectives
At the end of this module, you will have a better
understanding of how to:
• Maintain proper inventory records
• Maintain proper level of inventory
• Use first-in-first-out concept when managing
  inventory
• Inspect delivery of supplies before
  acceptance
• Identify lot numbers and expiry dates
• Keep kits and supplies in proper storage

                                                    3
Content Overview
•   What is inventory management?
•   Inventory records
•   Re-order levels
•   Inventory storage
•   Inventory delivery




                                    4
Inventory Management Means…



     Properly maintaining
   adequate stocks to ensure
     uninterrupted service



                               5
Inventory In A Laboratory
Includes:
    Supplies
    Reagents
    Forms




  Inventory (or stock) = the supplies and
  materials you need for all lab
  performance
                                            6
 Inventory Management Leads to
 High Quality Testing
Inventory management:
    Ensures availability of materials and kits
     when needed
    Avoids the use of expired kits
    Minimizes wasting




                                                  7
How Do You Manage Inventory?
You own a small store. You
buy the merchandise from
suppliers and sell them for a
profit. To keep a profitable
business, you must always
have the right items
available for customer
purchase everyday.
What must you do to
maintain adequate stocks?


                                8
Inventory Management Involves
Knowing…
• What and how much stock you have
• When to order fresh supplies
• What and how much has been ordered,
  when it was ordered
• Where all supplies are stored
• When and how much fresh stock was
  received, and by whom

                                        9
Inventory Management Involves
Doing…
 •   Performing a “stock count”
 •   Maintaining proper inventory records
 •   Determining when to re-order
 •   Determining how much to re-order
 •   Placing orders properly
 •   Inspecting delivery of new orders
 •   Ensuring proper storage of inventory
                                            10
Perform a “Stock Count”
What is it?        Physically counting each item
                   in the inventory
When is it         In the beginning of each
done?              month recommended

Who does it?       A designated person


  All stock must be accounted for. Everything that
      comes in and goes out must be recorded.

                                                     11
Maintain Proper Inventory Records
Stock Card
• Simple, heavyweight cards
• Kept for each item in stock

Stock Book or Computer Record
• Contains listing of all items in the laboratory
• Update monthly after physical count
• Use information from stock cards


                                                    12
 Stock Card: An Example
• Item Name: __________ Unit: ___________
• Manufacturer: ________________________
• Minimum Stock (Re-Order Level): ___________
       Received   Issued   Quantity   Quantity
Date                                             *Balance   Lot #   Signature
        From         to    Received    Issued




                                                                           13
Stock Book: An Example
Item      Qty        Date      Qty      Date     Lot #   Expiry
Name    (units)    Requested Received Received            Date
       Requested




                                                             14
 Determine When to Re-order

Re-order when inventory reaches minimum stock level
 Terminology:
 • Minimum stock - Amount of stock required
   to support testing operations until additional
   supplies are received
 • Lead time – Time between placing an order
   and receiving it
 • Maximum usage – number of test devices
   used in a given time period
                                                    15
Calculating Minimum Stock Level

Minimum Stock   =   Maximum lead
                    time in weeks
                                    X   Maximum
                                         Usage
    Level

       Maximum lead time = 2 weeks
       Maximum usage/wk = 3 kits
       Minimum stock level = 2 x 3 = 6 kits

When only 6 kits are left, place an order

                                                  16
Exercise:
Calculating Minimum Stock Level

Minimum Stock   =   Maximum lead
                    time in weeks
                                    X   Maximum
                                         Usage
    Level

• On average, you use 2 BHCG kits a week.
• It normally takes 2 weeks to receive the order
  you placed.
• You should order more BHCG kits when you
  have ____ kits left in the inventory.

                                                   17
Determine How Much to Re-order
  Establish proper full stock level. Re-order
  to reach that level.

  • Never order more than your storage space
    can hold
  • Never order more supplies than you can
    use before they are expired
  • Consider maximum usage plus minimum
    stock level
  • Consider shipping costs when placing
    orders
                                                18
 Determine Proper Full Stock Level:
 An Example

      Maintain an inventory that covers a month’s
      maximum usage plus minimum stock level

Maximum lead time = 2 weeks        Usage/Month = 3 kits/wk x 4 wks
Maximum usage/wk = 3 kits          = 12 kits
Minimum stock level = 2 x 3 =      Minimum stock level = 6 kits
6 kits                             Proper inventory level = 12+6 =
                                   18
When only 6 kits are left, place   You must always have 18 kits in
an order.                          the inventory in the beginning of
                                   each month.

                                                                  19
Exercise: Minimum Stock Level and
Proper Full Stock Level
• On average, you use 1 box of gloves
  each week (or 4 boxes a month).
• It takes 3 weeks to receive the order
  you placed.
   Determine:
   • What is the minimum stock level?
   • How many boxes should be in the
     inventory in the beginning of each month?

                                                 20
Place Orders Properly
• An ordering system must be in place
• Follow ordering protocol
• Ensure relevant ordering (requisition)
  forms are on site




                                           21
Inspect Delivery of New Orders
Upon receipt:
• verify contents of order received with
  requisition
• Check integrity of received supplies
• Date each item
• Note expiration date
• Store new shipment behind existing shipment
• Create or update records


                                                22
Examine Lot Number & Expiry Date




                               23
Ensure Proper Storage of Inventory
• Keep in a clean, organized, and locked
  storeroom
• Store according to manufacturer’s instructions
• Place in well ventilated room
• Store away from direct sunlight
• Place items on shelves
• New shipments placed
  behind existing items
                               First in, first out


                                                     24
Summary
•   What does inventory management mean?
•   What information is recorded in inventory
    record-keeping?
•   How do you determine minimum stock
    level?
•   How do you determine proper full inventory
    level?
•   What does “First In First Out” mean?
•   What procedure should you follow when
    receiving new kits and supplies?
•   How should kits and supplies be stored?
                                                 25
Key Messages
•   Maintain an adequate inventory at all time
    to ensure uninterrupted service.
•   Don’t let any item run out before re-order.
•   Never order more than your storage space
    can hold. Never order more supplies than
    you can use before they are expired.
•   All items in the inventory must be
    accounted for and recorded.
•   Always inspect new shipment before
    accepting.
                                                  26

				
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