Inventory Management

The Lab Quality System

Organizat ion Personnel

Equipme nt

Purchasin g& Inventory

Process Control (QC & EQA) & Specimen Managemen t

Informatio n Managem ent

Assessme nt

Documen ts & Records Process Improveme nt

Occurren ce Managem ent Customer Service

Facilities & Safety

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

Inventory Management Means

Properly maintaining adequate stocks to ensure uninterrupted service

Inventory In A Laboratory Includes:

Supplies Reagents Forms

Inventory (or stock) = the supplies and materials you need for all lab performance
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Inventory management: Ensures availability of materials and kits when needed Avoids the use of expired kits Minimizes wasting

Inventory Management Leads to High Quality Testing

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?

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
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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
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What is it?

Physically counting each item in the inventory When is it done? In the beginning of each month recommended Who does it? A designated person

Perform a Stock Count

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

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Stock Card: An Example

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

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Stock Book: An Example

Item Name Qty (units)
Requested

Date
Requested

Qty Received

Date Received

Lot #

Expiry Date

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Determine When to Reorder

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
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Calculating Minimum Stock Level

Minimum Stock Level

Maximum lead time in weeks

Maximum Usage

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
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Exercise: Calculating Minimum Stock Level

Minimum Stock Level

Maximum lead time in weeks

Maximum Usage

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.
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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

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Determine Proper Full Stock Level: An Example

Maintain an inventory that covers a months maximum usage plus minimum stock level
Maximum lead time = 2 weeks Maximum usage/wk = 3 kits Minimum stock level = 2 x 3 = 6 kits Usage/Month = 3 kits/wk x 4 wks = 12 kits Minimum stock level = 6 kits Proper inventory level = 12+6 = 18 You must always have 18 kits in When only 6 kits are left, place the inventory in the beginning of each month. an order.
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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?
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Place Orders Properly

An ordering system must be in place Follow ordering protocol Ensure relevant ordering (requisition) forms are on site

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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

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Examine Lot Number & Expiry Date

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Ensure Proper Storage of Inventory

Keep in a clean, organized, and locked storeroom Store according to manufacturers instructions Place in well ventilated room Store away from direct sunlight Place items on shelves New shipments placed First in, first out First in, first out behind existing items

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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?
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Key Messages
Maintain an adequate inventory at all time to ensure uninterrupted service. Dont 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.
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