Inventory Management

InventoryManagement

InventoryManagement

Strategyfor balancing between stock in hand and the carrying cost

Theorganization needs to adopt an effective inventory or stockmanagement system that will help it strike the balancing between thecarrying cost and the cost of stock-out. For example, the single binstock management system can help the management of the health carefacility order for more stock only when the remaining stock can lastfor the lead time (Kaplan Financial Limited, 2012). The effectivenessof the single bin stock management system can be achieved if theadministrator determines the economic order quantity, reorder level,and the lead time. The economic order quantity ensures that theorganization makes an optimum order that minimize the holding cost tothe lowest level and while ensuring that the firm does not run out ofstock. The single bin stock management system should be computerizedin order to ensure that the administrator is reminded to make theorder at the right time.

Staffingoptimization

Staffingoptimization is achieved through proper scheduling of the availablemembers of staff and the design of optimum shift plans. For example,the hospital can adopt a flexible system and a ten hour shift planfor all health care providers. This means that each of the healthcare provider have to work for four days a week and a total of fortyhours per week (Sabet, 2015). This plan ensures that each of thehealth care providers remain within the hospital for ten hours withinthe four days that they are allocated. Studies have shown that theten hour shift plan is flexible, enhances the continuity of care, andensures that the hospital has adequate care providers during the peakand low seasons (Shiftwork Solutions LLC, 2015). Therefore, thehospital should adopt a ten-hour shift pattern and a flexible staffscheduling.

References

KaplanFinancial Limited (2012). Stock or inventory management. KaplanFinancial Limited.Retrieved July 21, 2015, fromhttp://kfknowledgebank.kaplan.co.uk/KFKB/Wiki%20Pages/Working%20capital%20inventory.aspx

Sabet,L. (2015). Adoptingonline nurse scheduling and staffing system.Oakland: California Health Care Foundation.

ShiftworkSolutions LLC (2015). Ten-hour shift and ten-hour shift schedules.ShiftworkSolutions LLC.Retrieved July 21, 2015, from http://10hourshifts.com/