Tiêu đề 2b & c.docx ✅

4) Inventory control 5) Issue and distribution 6) Disposal and condemnation 7) Minimizing losses and pilferage MANAGEMENT OF FINANCE IN HOSPITAL PHARMACY INVENTORY CONTROL Inventory control may be defined as a scientific method of finding out how much stock should be maintained in order to meet the production demands and be able to provide right type of material at right time in right quantities and at competitive prices. Various methods of Inventory control ABC, VED, EOQ, Lead time, Safety stock ABC ANALYSIS: *ABC plan is based upon segregation of materials for selection control. *It measures the money value, i.e.. cost significance of each material item in relation to total cost and material value. A items B items Citems It covers 10% of total inventory It covers 20% of total inventory It covers 70% of total inventory t consumes about 70% of total budget It consumes about 20% of total budget It consumes about 10% of total budget Very strict control Very moderate control Very loose control It requires either no safety stocks or low safety stocks It requires low safety stocks It requires high safety stocks It must be handled by senior officer It can be handled by middle management It can be handled by any office management. ADVANTAGES DISADVANTAGES This technique helps for control of material on selective base ABC analysis should be changed periodically upto dates but it is difficult task to change frequently This technique reduces clerical costs Standardization and codification become difficult It is proper and powerful method for cost reduction.
VED ANALYSIS: *VED analysis is based on the criticality of an item. *V- It is for vital items without which a hospital can not funciton *E- It is for essential items without which a hospital can function but may affect the quality of the services. *D- It is for desriable items, unavailability of which with not interfere with function. *In hospital inventory management, VED analysis has been commonly used together with ABC analysis. *By combining ABC and VED analysis, the medicines can be coupled into the following group: *Class I: AV+ BV+CV+AE+ AD *Class II: BE +CE+BD *Class III: CD *Class I is the highest priority group, needing greatest attention. The management of class I medicines by top management would help in keeping a check on the annual budget and their availability, EOQ ANALYSIS: *EOQ is essentially an accounting formula that determines at which the combination of order, costs and inventory carrying cost are the least. In purchasing this is known as order quantity, in manufacturing it is known as the production lot size. Assumption of the EOQ Models: *Demand is known and is deterministic, Le. constant. *The lead time, ie the time between placement of the order and the receipt of the order is known and constant. *The receipt of inventory is instantaneous. In other words the inventory from an order arrives in one batch at one point in time. * Quantity discount are not possible, in other words it dose not make any difference how much we order, the price of the product will still be the same; and *That only costs pertinent to inventory model are the cost of placing an order and cost of holding or storing inventory over time. EOQ models can be classified into Q Model and P Model. Q MODEL *In Q model, a fixed quantity of material is ordered when ever the stock on hand reaches the recorder point the fixed quantity of material ordered each time is nothing but the economic order quantity. When the new consignment arrives the total stock shall be within the maximum and the minimum limits. *Formula EOQ-√2AP/S *Q denotes onder quantity *A denotes demand per time period (eg-annual demand) *S denotes carrying/ holding cost of one unit of stock for one period and *P denotes onder cost.
MERITS DEMERITS Each material can be in the most economical quantity The orders are raised ut irregular intervals which may not be convenient to the suppliers. Purchasing an inventory control personnel automatically devote attention to the items that are needed only when required In case the lead time is very high supply of inventory muy interpret Positive control can be easily exerted to maintain total inventory investment at the desired level, simply by manipulating the plant maximum and minimum values EOQ may give you an order quantity which is much below the supplier minimum and there is always a chance that the ordering level for an item has been reached but not noticed in which case a stock out may occur and the items cannot be group and ordered at a time since the recorder points occur irregularly. P MODEL *In this model the stock position of each item of material is regularly reviewed. Under this model inventory is ordered based on fixed period. PharmD MERITS DEMERITS The ordering and inventory cost and low It compels a periodic review of all item; this in itself make the system somewhat inefficient because of difference in uses rate supply may not have to be order until succeeding review The supplier will also offer attractive discount Equally important the system demand the on sales are granted Equally important the system demand establishment of rather inflexibility order quantities.. The system works well for material which exhibit an irregular or seasonal use and whose purchase must be planned in advance on the basis of sales estimated The periodic review system tends to peak the purchasing work around the review dates