Healthcare Supply Management: Optimizing Procurement & Inventory

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Introduction

Hospitals and medical consultations are firms offering services and charging for them. Private schools pay for the service, while in the public sector, the state is responsible. It is crucial to adhere to the budget. Efficient supply management ensures the availability of products for the operation of a center at the least expense, while maintaining good medical care.

Major health centers have a delivery service that manages procurement, acquisition, storage of equipment, and instruments. Smaller centers have less complex supply management, often handled by a single person.

Supply management involves several stages:

  • Acquisition of equipment
  • Storage of products

Service suitability is determined by favorable spending. Large centers manage purchases in different ways:

Management of Purchases

Centralized

Used for certain items purchased by an entity. All health facilities need to apply for materials from this entity. Larger orders get better prices. Products bought through this procedure are called approved material and are published annually in a catalog of selected items, ensuring cost-effective and affordable options for hardware, vehicles, etc.

Decentralized

Each center runs its own shopping, usually through competition, to choose suppliers.

Mixed

Utilizes both centralized and decentralized forms.

Stock Management

In any store, the following stock levels should be established:

Minimum Stock

The minimum amount of a certain article that must always be in a warehouse to ensure proper supply to various services. It is determined by delivery date and the pace of demand.

Maximum Stock

The maximum amount of a given item that should be stored, considering storage costs and volume discounts.

Safety Stock

A minimum quantity of each item that should always be kept in store to meet unexpected demands or excessive delays in provision, preventing stockouts.

Stockout

When the hospital cannot cover patient needs due to lack of supplies.

Horizon

Time lag between purchasing.

Reorder Point

The smallest unit of an article in a warehouse that triggers the need for new supplies to be ordered.

Economic Order Quantity

The quantity of an article that should be ordered to minimize procurement and storage costs.

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