This document discusses various inventory control techniques used in hospitals. It defines inventory as a record of all procured, received, stored and used goods and materials. Inventory control aims to manage inventory levels and order the optimal amount of goods to minimize costs while preventing stockouts. Common inventory analysis techniques described include ABC analysis which categorizes items based on their costs and usage, VED analysis which categorizes based on criticality, and HML analysis which also categorizes based on unit price. The document outlines different inventory classification systems and their objectives.

1. INVENTORYINVENTORY
CONTROLCONTROL
BY.A.SWAROOPA, ASST.PROFESSOR

2.
Inventory is a record of all goods
or materials procured, received,
stored and used in the hospital.
“nursing.com”
DEFINITION OF INVENTORY

3.
Inventory is a detailed list of all
materials their specifications
and standard number or quality.
DEFINITION OF INVENTORY

4. Inventory control
Inventory control is a Process
for managing and locating
objects or materials

5. Inventory control
is a scientific
system which
indicates
what to order,
when to order,
and how much to order, and how much
to stock so that purchasing costs and
storing costs are kept as low as
possible.

6.
It is the sum of value of raw
materials, fuels and
lubricants, spare parts,
maintenance consumables,
semi processed and finished
goods.
DEFINITION OF INVENTORY
MANAGEMENT

7.
Inventory management is the
planning and controlling of
inventories in order to meet
the competitive priorities of
the organization.
DEFINITION OF INVENTORY
MANAGEMENT

8. INVENTORY SYSTEM:
A set of policies & controls that
monitors levels of inventory and
determines what levels should be
maintained, when stock should be
replenished. (full/complete).

9. PURPOSES OF
INVENTORY:
To make an account of materials
held in the ward to check against the
recommended standards & take
remedial measures.
To dispose or obsolete (not needed
for longer time) material.
To determine the serviceability of
materials.

10. purposes of inventory:
TO REQUEST FOR REPAIR OR
REPLACEMENT.
TO MINIMIZE SHORTAGES.
TO IMPROVE QUALITY OF CARE.
FOR THE SMOOTH
FUNCTION OF AN
ORGANIZATION.
TO PROTECT AGAINST
STOCK OUTS.

11. INVENTORY MODELS:
INDEPENDENT DEMAND:
finished goods, items that are ready to be
sold
E.g. a computer
DEPENDENT DEMAND :
components of finished products
E.g. parts that make up the
computer

12. Inventory Counting
Systems
1)Periodic System
This is a physical count
of items in inventory
Is made at periodic
intervals (e.g. weekly,
monthly) in order to
decide how much to
order of each item.
Major users: Supermarkets, discounts
stores, and department stores.

13. 2) Perpetual Inventory
System
System that keeps track of
removals from inventory
continuously, thus monitoring
current levels of each item.

14. Inventory Counting Systems
(Cont’d)
3) Two-BinSystem:
Two containers of inventory;
reorder when the first is empty.

15. 4) Universal Bar Code :
Bar code printed on a label that
has information about the item to
which it is attached.
214800 232087768

16. TECHNIQUES IN
INVENTORYCONTROL
ABC Analysis
VED Analysis
HML Analysis
FSNO Analysis
SDE Analysis
SOS ANALYSIS
XYZ ANALYSIS

18. ANALYSIS
ITEMS REPRESENT HIGH COST MATERIALS
ITEMS OF INTERMEDIATE COST MATERIAL
ITEMS ARE OF LOW COST MATERIAL.
About 10 % of materials consume 70 % of
resources.
About 20 % of materials consume 20 % of
resources.
About 70 % of materials consume 10 % of
resources.

19. A- Items
1.Very tight controls
2.Accurate records.
3.Maximum follow up & expediting.
4.Strict and close watch
5.Safety stocks should be low
6.Management of items should be done at
top management level. (15% of total items).
ABC ANALYSIS
It is based on usage value and
cost.

20. B- Items (35%) of total
items)
1.Moderate control and good record.
2.Purchase based on rigid
requirements
3.Reasonably strict watch and
control
4.Safety stocks moderate
5.Management be done at middle level.
6.periodic follow up.

21. C- Items
1.Ordinary simplest control and
minimal records.
2.Purchase based on usage estimates
3.Controls exercises by store keeper.
4.Safety stocks high
5.Management be done at lower
levels.
6.Followup & expediting in
exceptional case.

24. VED ANALYSIS
The stores based on the criticality of
item.
1.VITAL: non- availability or shortage
canot be tolerated.
Ex: defribulator,
ventilator,
oxygen regulator

25. 2.ESSENTIAL:
items whose non availability or
shortage can be tolerated for 2-3
days, because similar or alternative
items are available.
Ex: X-ray machine
Electric cautery
Patient trolley

26. VED ANALYSIS:
3.DESIRABLE: items whose non availability
can be tolerated for a long period.
Ex: electronic BP machine.
On an average in any hospital vital items
are 10%, essential items are 40% and
desirable items make 50% of total items
available.

27. H-M-L Classification
• Based on the unit value/ price (in
rupees) of items.
• Similar to A-B-C analysis
Inventory
Management
06 July 2012 KLE College of Pharmacy, Nipani. 27
H-High
M-Medium
L-Low

28.
H DefibrillatorX-ray machine Air- curtains
M Ventilator Electric
cautery
Ultrasonic wash
machine
L Oxygen
regulator
Patient
trolley
Electronic BP
machine

29. SDE Analysis
Unit value is the basis of this analysis
and not the annual consumption value.
•H - Unit value > 1000 (Sanctioned by
higher officials)
•M - Unit value 100 to 1000
•L - Unit value < 100

30. S-D-E Classification
• Based on the lead-time/
procurement difficulties.
S – Scarce : longer lead time
D – Difficult : long lead time
E – Easy : reasonable lead
time

32. FSNO ANALYSIS
•It is based on issues from stores.
•The items can be classified into:
1.Fast moving
2.Slow moving
3.Non- moving
4.Obsolete

33. XYZ AnalysisXYZ Analysis: :
XYZ analysis is based on the
“inventorey investments” criteria of
Closing Inventory value of different
items.
X – Items whose Inventory value is
high.
Y – Items whose Inventory value is
neither too high nor too low.
Z – Items with Low investments in
them.

34. G-O-L-F Classification
• G-O-L-F stands for: depends on source of procurement
G – Government
O – Ordinary
L – Local
F – Foreign
Inventory
Management
06 July 2012