Chapter 17: Inventory Management–Central Service Tech Manual

Inventory
Reusable equipment and consumable items that are used to provide healthcare services for patients.
Stock outs (inventory)
The condition that occurs when reusable or consumable inventory items required to provide healthcare services to patients are not available.
Asset
Something of value that is owned by and organization or person.
Inventory (consumable)
Assets such as wrapping supplies, processing chemicals, and other items which are consumed (used up) as healthcare services are provided for patients.
Inventory (reusable)
Assets that are relatively inexpensive such as medical devices and sterilization containers that can be reused as healthcare services are provided to patients.
Equipment (capital)
Assets that are relatively expensive such as sterilizers or washers that require significant advance planning for their purchase.
Equipment (official)
Consumable products found in Central Service and other storerooms, warehouses, and sterile storage areas. Their value is usually included on the facility’s balance sheet.
Inventory (unofficial)
Consumable products found in user areas such as surgical locations and labs. These items have usually been expensed to the user departments and are stored in unofficial locations.
Balance sheet
A financial summary of what a healthcare facility owns (assets), owes (liabilities), and is worth (equity) at a specific point in time. (Ex: last day of every month).
Asset (current)
An asset that is expected to be used within one year.
Periodic automatic replenishment (PAR)
An inventory replenishment system in which the desired amount of products which should be on hand is established, and inventory replenishment returns the quality of products to this level; often abbreviated to “par system.”
PAR
periodic automatic replenishment
Automated supply replenishment system
Replenishment system in which items removed from inventory are automatically identified and tracked. When a reorder point is reached, item information is generated on a supply pick list in the central storeroom. Items are then issued, and transferred to the appropriate user area.
Exchange cart system
An inventory system which desired inventory items are placed on a cart which is assigned a specific location and quantity. A second, duplicate cart is maintained in another location and exchanged once daily to ensure that sufficient supplies are available at all times.
Requisition system
A method of inventory distribution in which item needs are requested (requisitioned) by user department personnel, and removed from a central storage location for transport to the user department.
Case cart system
An inventory control system for products and equipment typically used in the operating room which involves use of a cart that is generally prepared for one special surgical case, and not used for general supply replenishment.
STAT order
Abbreviation for the Latin word, “Statim,” which means immediately or at once.
Bar code
Numerous machines- readable rectangular bars and spaces arranged in a specific way to represent letters, numbers, and other symbols.
Radio frequency identification
A term used to describe a system in which the identity (serial number) of an item is wirelessly transmitted with radio waves.
RFID
Radio frequency identification
Distribution
The movement of supplies throughout the facility, primarily consumable supplies from the storeroom to clinical units and reprocessed supplies from Central Service to operating room.
Perpetual inventory system
A system which keeps track of all incoming and issued supplies so that one knows, on an on-going basis, the quantity of supplies that is in storage.
Issue
The act of withdrawing supplies from storage for transfer to areas where they will be used.
Variance
The difference between the amount of a supply that should available (from records) and the amount that is available (from physical count) when a perpetual inventory system is used.
ABC analysis
The inventory management strategy that indicates storeroom controls should first address the relatively few items with the greatest value (A items), and should lastly consider the many items with the lowest value (C items).
Total acquisition coat
All costs incurred by the facility to purchase a specific supply or equipment item from the point of authorization through disposal.
Inventory turnover rate
The number of times per year that inventory is purchased, consumed, and replaced.
Inventory service level
The percentage of
Items filled (available) when an order is placed.
Inventory stock out rate
The percentage of items that cannot be filled (are not available) when an order is placed.