Inventory Control

Swaroopa

1. INVENTORY INVENTORY
CONTROLCONTROL
BY.A.SWAROOPA, ASST.PROFESSOR

2.  
Inventory is a record of all goods
or materials procured, received,
stored and used in the hospital.
“nursing.com”
DEFINITION OF INVENTORY

3.  
Inventory is a detailed list of all
materials their specifications
and standard number or quality.
DEFINITION OF INVENTORY

4. Inventory control
Inventory control is a Process
for managing and locating
objects or materials

5. Inventory control
is a scientific
system which
indicates
what to order,
when to order,
and how much to order, and how much
to stock so that purchasing costs and
storing costs are kept as low as
possible.

6.  
It is the sum of value of raw
materials, fuels and
lubricants, spare parts,
maintenance consumables,
semi processed and finished
goods.
DEFINITION OF INVENTORY
MANAGEMENT

7.  
Inventory management is the
planning and controlling of
inventories in order to meet
the competitive priorities of
the organization.
DEFINITION OF INVENTORY
MANAGEMENT

8. INVENTORY SYSTEM:
A set of policies & controls that
monitors levels of inventory and
determines what levels should be
maintained, when stock should be
replenished. (full/complete).

9. PURPOSES OF
INVENTORY:
To make an account of materials
held in the ward to check against the
recommended standards & take
remedial measures.
To dispose or obsolete (not needed
for longer time) material.
To determine the serviceability of
materials.

10. purposes of inventory:
TO REQUEST FOR REPAIR OR
REPLACEMENT.
TO MINIMIZE SHORTAGES.
TO IMPROVE QUALITY OF CARE.
FOR THE SMOOTH
FUNCTION OF AN
ORGANIZATION.
TO PROTECT AGAINST
STOCK OUTS.

11. INVENTORY MODELS:
INDEPENDENT DEMAND:
finished goods, items that are ready to be
sold
E.g. a computer
DEPENDENT DEMAND :
components of finished products
E.g. parts that make up the
computer

12. Inventory Counting
Systems
1)Periodic System
This is a physical count
of items in inventory
Is made at periodic
intervals (e.g. weekly,
monthly) in order to
decide how much to
order of each item.
Major users: Supermarkets, discounts
stores, and department stores.

13. 2) Perpetual Inventory
System
System that keeps track of
removals from inventory
continuously, thus monitoring
current levels of each item.

14. Inventory Counting Systems
(Cont’d)
3) Two-BinSystem:
Two containers of inventory;
reorder when the first is empty.

15. 4) Universal Bar Code :
Bar code printed on a label that
has information about the item to
which it is attached.
214800 232087768

16. TECHNIQUES IN
INVENTORYCONTROL
ABC Analysis
VED Analysis
HML Analysis
FSNO Analysis
SDE Analysis
SOS ANALYSIS
XYZ ANALYSIS

18. ANALYSIS
ITEMS REPRESENT HIGH COST MATERIALS
ITEMS OF INTERMEDIATE COST MATERIAL
ITEMS ARE OF LOW COST MATERIAL.
About 10 % of materials consume 70 % of
resources.
About 20 % of materials consume 20 % of
resources.
About 70 % of materials consume 10 % of
resources.

19. A-    Items
1.Very tight controls
2.Accurate records.
3.Maximum follow up & expediting.
4.Strict and close watch
5.Safety stocks should be low
6.Management of items should be done at 
top management level. (15% of total items).
ABC ANALYSIS
It is based on usage value and
cost.

20. B-    Items (35%) of total 
items)
1.Moderate control and good record.
2.Purchase based on rigid 
requirements
3.Reasonably strict watch and 
control
4.Safety stocks moderate
5.Management be done at middle level.
6.periodic follow up.

21. C-    Items
1.Ordinary simplest control  and 
minimal records.
2.Purchase based on usage estimates
3.Controls exercises by store keeper.
4.Safety stocks high
5.Management be done at lower 
levels.
6.Followup & expediting in 
exceptional case.

24. VED ANALYSIS
The stores based on  the criticality of 
item.
1.VITAL: non- availability or shortage 
canot be tolerated.
Ex: defribulator, 
ventilator, 
oxygen regulator 

25. 2.ESSENTIAL:
 items  whose  non  availability  or 
shortage  can  be  tolerated  for  2-3 
days, because similar or alternative 
items are available.
Ex: X-ray machine
Electric cautery
Patient trolley

26. VED ANALYSIS:
3.DESIRABLE: items whose non availability 
can be tolerated for a long period. 
Ex: electronic BP machine.
On an average in any hospital vital items 
are  10%,  essential  items  are  40%  and 
desirable  items  make  50%  of  total  items 
available.

27. H-M-L Classification
•Based on the unit value/ price (in
rupees) of items.
•Similar to A-B-C analysis

Inventory
Management
06 July 2012 KLE College of Pharmacy, Nipani. 27
H-High
M-Medium
L-Low

28.  
H DefibrillatorX-ray machineAir- curtains
M Ventilator Electric 
cautery
Ultrasonic  wash 
machine
L Oxygen 
regulator
Patient 
trolley
Electronic  BP 
machine

29. SDE Analysis
Unit value is the basis of this analysis
and not the annual consumption value.
•H - Unit value > 1000 (Sanctioned by
higher officials)
•M - Unit value 100 to 1000
•L - Unit value < 100

30. S-D-E Classification
•Based  on  the  lead-time/ 
procurement difficulties .
S – Scarce: longer lead time
D – Difficult  : long lead time
        E – Easy  : reasonable lead   
                  
                time

32. FSNO ANALYSIS
•It is based on issues from stores.
•The items can be classified into:
1.Fast moving
2.Slow moving
3.Non- moving
4.Obsolete

33. XYZ AnalysisXYZ Analysis : : 
XYZ  analysis  is  based  on  the   
“inventorey  investments”  criteria  of 
Closing Inventory value  of different 
items.
X  –  Items  whose  Inventory  value  is 
high.
Y  –  Items  whose  Inventory  value  is 
neither too high nor too low.
Z  –  Items  with  Low  investments  in 
them.

34. G-O-L-F Classification
•G-O-L-F stands for: depends on source of procurement
G – Government
O – Ordinary
L – Local
F – Foreign
Inventory
Management
06 July 2012