Inventory Management

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Inventory Management
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The Lab Quality System
Information Management
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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

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Inventory Management Means
Properly maintaining adequate stocks to ensure
uninterrupted service
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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 Leads to High Quality
Testing

• Inventory management
• Ensures availability of materials and kits when
  needed
• Avoids the use of expired kits
• Minimizes wasting

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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?

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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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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) ___________

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Stock Book An Example
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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

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Calculating Minimum Stock 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

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ExerciseCalculating Minimum Stock 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.

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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
• When only 6 kits are left, place an order.

Usage/Month 3 kits/wk x 4 wks 12 kits Minimum
stock level 6 kits Proper inventory level
126 18 You must always have 18 kits in the
inventory in the beginning of each month.
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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

First in, first out

• Place items on shelves
• New shipments placed 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.