Warehouse Functions and Inventory Management in Healthcare

Key Warehouse Functions

Departure

• Monitor the consumption of items by various departments.
• Suitably distribute articles.

Entry

• Reject material that does not meet the requirements of the order.
• Monitor and handle the exchange of expired material.

Storage

• Protect and oversee all the products stored.
• Register and control the movements of stock.
• Avoid losses in the stored materials.
• Ensure items are consumed before the expiry date.
• Design documents necessary for good control of the warehouse.
• Request resupply when stocks are minimal.

When to Start Product Replacement

Replacement of a product should start before falling below the minimum stock.

High Maximum Stock: Advantages and Disadvantages

Maximum stock refers to the maximum amount of a particular item above which should not be stored.

Characteristics of Revolving Inventory

• Revise a given number of items each time to complete the inventory.
• It is not necessary to close the store.
• Often uses ABC rating (Pareto 80/20).

Characteristics of Annual Inventory

• Count all the existing articles on a particular date (typically the end of the year).
• It is necessary to close the store temporarily.

ABC Classification

ABC analysis is based on the Pareto Law (80/20), which states that 20% of articles represent 80% of total storage value, and conversely, 80% of the remaining stock represents 20% of the value.

• Group A products are the most expensive stock. Example: prosthetic machinery.
• Group B products are intermediate in value and quantity. Example: flanges.
• Group C products are the least expensive. Example: pink sheet wax or screws.

Most Used Method in Medical Supplies Stock Valuation

The Weighted Average Price (WAP) calculates a mean price for each article, considering that successive orders for this item may have entered the store at different prices.

Stock Valuation by FIFO

FIFO stands for First In, First Out. It is used in businesses where prices tend to decline and is useful in healthcare facilities for material distribution.

Stock Valuation by LIFO

LIFO stands for Last In, First Out. Each batch preserves its entry price. It is used in businesses where prices tend to rise.

Utility of Information in Storage

The application of computers to inventory control has greatly simplified this task, allowing the maintenance of complete records and files of all operations carried out in the store. You may obtain accounting and inventory data updated at all times.

The store service can know not only the number of stored items but also the movements of each item and its economic value. It can also determine which items contribute the most and have increased consumption, both in terms of quantity and cost.