Surgical Supply Chain

Opportunities

Harvesting savings out of current inventory

How are the inventory number

determined?
Spend history for each item suggest the
optimal reorder point, reorder quantity,
and maximum quantities should be kept
on-site.
Item
SUTURE 4-0 VICRYL PC-5 J823H
SUTURE 2-0 SILK TIES 18" A185H
SUCTION TIP YANKAUER NEURO
SUTURE 3-0 VICRYL CT-1 J258H
SUTURE 0 PDS II CT-2 Z334H
SUTURE 0 VICRYL CT-1 J946H
SUTURE 2-0 VICRYL CT-1 J945H
SUTURE 3-0 SILK SH POPOFF C013D

Jan
252
180
200
144
144
144
144
132

Feb
252
180
100
180
144
144
180
108

Mar
288
216
100
180
216
144
108
120

Apr May
252 216
252 252
200 200
216 180
144 180
180 72
216 252
156 168

Jun
216
144
200
144
144
108
108
120

Jul Aug Sep Aug

216 288 288 252
144 252 180 216
200 150 200
72 144 144 180
108 180 180 144
108 216 108 216
36 144 144 144
132 144 132 144

Nov
180
216
100
108
108
108
108
120

Dec
252
180
350
180
144
216
180
168

How are the inventory number

determined?
Monthly purchase numbers are
converted to average daily use
(counting only workdays and excluding
holidays)
252 used in January / 23 working days = 11
Item
SUTURE 4-0 VICRYL PC-5 J823H
SUTURE 2-0 SILK TIES 18" A185H
SUCTION TIP YANKAUER NEURO
SUTURE 3-0 VICRYL CT-1 J258H
SUTURE 0 PDS II CT-2 Z334H
SUTURE 0 VICRYL CT-1 J946H
SUTURE 2-0 VICRYL CT-1 J945H
SUTURE 3-0 SILK SH POPOFF C013D

Jan Feb Mar Apr May Jun Jul Aug Sep Aug Nov Dec
11.0 12.0 13.1 11.0 10.8 9.4 9.8 13.7 13.7 13.3 8.6 11.5
7.8 8.6 9.8 11.0 12.6 6.3 6.5 12.0 8.6 11.4 10.3 8.2
8.7 4.8 4.5 8.7 10.0 8.7 0.0 9.5 7.1 10.5 4.8 15.9
6.3 8.6 8.2 9.4 9.0 6.3 3.3 6.9 6.9 9.5 5.1 8.2
6.3 6.9 9.8 6.3 9.0 6.3 4.9 8.6 8.6 7.6 5.1 6.5
6.3 6.9 6.5 7.8 3.6 4.7 4.9 10.3 5.1 11.4 5.1 9.8
6.3 8.6 4.9 9.4 12.6 4.7 1.6 6.9 6.9 7.6 5.1 8.2
5.7 5.1 5.5 6.8 8.4 5.2 6.0 6.9 6.3 7.6 5.7 7.6

How is this number determined?

Math wizardry calculates the overall
average daily use and standard
deviation of order history*
Item

Jan Feb Mar Apr May Jun Jul Aug Sep Aug Nov Dec
11.0 12.0 13.1 11.0 10.8 9.4 9.8 13.7 13.7 13.3 8.6 11.5
SUTURE 4-0 VICRYL PC-5 J823H
7.8 8.6 9.8 11.0 12.6 6.3 6.5 12.0 8.6 11.4 10.3 8.2
SUTURE 2-0 SILK TIES 18" A185H
8.7 4.8 4.5 8.7 10.0 8.7 0.0 9.5 7.1 10.5 4.8 15.9
SUCTION TIP YANKAUER NEURO
6.3 8.6 8.2 9.4 9.0 6.3 3.3 6.9 6.9 9.5 5.1 8.2
SUTURE 3-0 VICRYL CT-1 J258H
6.3 6.9 9.8 6.3 9.0 6.3 4.9 8.6 8.6 7.6 5.1 6.5
SUTURE 0 PDS II CT-2 Z334H
6.3 6.9 6.5 7.8 3.6 4.7 4.9 10.3 5.1 11.4 5.1 9.8
SUTURE 0 VICRYL CT-1 J946H
6.3 8.6 4.9 9.4 12.6 4.7 1.6 6.9 6.9 7.6 5.1 8.2
SUTURE 2-0 VICRYL CT-1 J945H
SUTURE 3-0 SILK SH POPOFF C013D 5.7 5.1 5.5 6.8 8.4 5.2 6.0 6.9 6.3 7.6 5.7 7.6

Ave

SD

11.5
9.4
7.8
7.3
7.1
6.9
6.9
6.4

1.72
2.08
3.97
1.87
1.56
2.47
2.76
1.05

*used to calculate safety stock. The more variable the

order history, the more stock needed to buffer against
usage uncertainty

How are the inventory number

determined?
Assumptions are made to calculate lead time
demand, safety stock, and reorder point. For most
hospitals, we assume an average 3 day turnaround
of orders
11.5 used per day x 3 days lead time = 34
items used while waiting for the stock to
arrive after being ordered

Item
SUTURE 4-0 VICRYL PC-5 J823H
SUTURE 2-0 SILK TIES 18" A185H
SUCTION TIP YANKAUER NEURO
SUTURE 3-0 VICRYL CT-1 J258H
SUTURE 0 PDS II CT-2 Z334H
SUTURE 0 VICRYL CT-1 J946H
SUTURE 2-0 VICRYL CT-1 J945H
SUTURE 3-0 SILK SH POPOFF C013D

Ave
11.5
9.4
7.8
7.3
7.1
6.9
6.9
6.4

SD
1.72
2.08
3.97
1.87
1.56
2.47
2.76
1.05

Lead Time
Demand Safety Stock
34
5
28
6
23
11
22
5
21
4
21
7
21
8
19
3

High variability
leads to higher
safety stock
needed

How are the inventory number

determined?
Assuming that you want to keep 5 days worth of
stock on hand, reorder point (Minimum), reorder
quantity, and maximum stock is also calculated

Item
SUTURE 4-0 VICRYL PC-5 J823H
SUTURE 2-0 SILK TIES 18" A185H
SUCTION TIP YANKAUER NEURO
SUTURE 3-0 VICRYL CT-1 J258H
SUTURE 0 PDS II CT-2 Z334H
SUTURE 0 VICRYL CT-1 J946H
SUTURE 2-0 VICRYL CT-1 J945H
SUTURE 3-0 SILK SH POPOFF C013D

Ave
11.5
9.4
7.8
7.3
7.1
6.9
6.9
6.4

SD
1.72
2.08
3.97
1.87
1.56
2.47
2.76
1.05

Lead Time Safety

Demand Stock
34
5
28
6
23
11
22
5
21
4
21
7
21
8
19
3

Reorder
Reorder Point Quantity (Lead
(min)*
time + 5 Days
Usage)

40
35
35
28
26
28
29
23

35
29
24
22
22
21
21
20

Max**

41
36
36
28
27
28
29
24

* Lead time demand plus safety stock

** Total amount of stock that should remain once a new order
arrives. Typically it is the order amount plus safety stock

How are the inventory number

determined?
Max value will be compared against the most
recent inventory level. The difference is
multiplied by the item price. Savings and
(expenditures) add up to the total opportunity
Item

Ave

SD

SUTURE 4-0 VICRYL PC-5 J823H

SUTURE 2-0 SILK TIES 18" A185H
SUCTION TIP YANKAUER NEURO
SUTURE 3-0 VICRYL CT-1 J258H
SUTURE 0 PDS II CT-2 Z334H
SUTURE 0 VICRYL CT-1 J946H
SUTURE 2-0 VICRYL CT-1 J945H
SUTURE 3-0 SILK SH POPOFF C013D

11.5
9.4
7.8
7.3
7.1
6.9
6.9
6.4

1.72
2.08
3.97
1.87
1.56
2.47
2.76
1.05

Lead Time Safety

Demand Stock
34
28
23
22
21
21
21
19

5
6
11
5
4
7
8
3

Min
40
35
35
28
26
28
29
23

Reorder
Max
Quant

35
29
24
22
22
21
21
20

41
36
36
28
27
28
29
24

On Hand Difference

44
56
55
22
35
50
29
22

3
20
19
-6
8
22
0
-2

Cost

Savings
Potential

$3.95
$1.28
$0.47
$1.55
$2.21
$1.64
$1.66
$7.90
Total

$
$
$
$
$
$
$
$
$

14
26
9
(10)
19
35
(1)
(14)
78