INVENTIRY MANAGEMENT

Content Overview
Meaning of Inventory Management Inventory Management Leads to

High Quality Testing

How Do You Manage Inventory? Inventory Management Involves Doing Maintain Proper Inventory Records Determine When to Re-order Inspect Delivery of New Orders Ensure Proper Storage of Inventory
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Inventory Management Means

Properly maintaining adequate stocks to ensure uninterrupted service

Inventory Management Leads to High Quality Testing

Ensures availability of materials

and kits when needed

Avoids the use of expired kits Minimizes wasting

How Do You Manage Inventory?

You own a small store. them for a profit. right items You buy the merchandise from suppliers and sell To keep a profitable for customer business, you must always have the available purchase everyday.

Inventory Management Involves Doing

Performing a stock count Maintaining proper inventory

records Determining when to re-order Determining how much to reorder Placing orders properly Inspecting delivery of new orders
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Perform a Stock Count

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

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

Maintain Proper Inventory Records

Stock Card Simple, heavyweight cards Kept for each item in stock Computer Record Update monthly after physical count Use information from stock cards

Stock Card: An Example

Item Name: __________ Unit: ___________ Manufacturer: ________________________ Minimum Stock (Re-Order Level):
Date

___________ Received Issued

From to

Quantity Received

Quantity Issued

*Balance

Lot #

Signature

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

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

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Inspect Delivery of New Orders

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 New shipments placed behind existing items

First in, first out First in, first out

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THANK YOU

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