Inventory Management

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Purchasing
& Inventory
Assessment
Occurrence
Management
Information
Management
Process
Improvement
Customer
Service
Facilities &
Safety
The Lab Quality System
Organization Personnel
Equipment
Process
Control
(QC & EQA) &
Specimen
Management
Documents
& Records
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Learning Objectives
At the end of this module, you will have a better
understanding of how to:
Maintain proper inventory records
Maintain proper level of inventory
Use first-in-first-out concept when managing
inventory
Inspect delivery of supplies before
acceptance
Identify lot numbers and expiry dates
Keep kits and supplies in proper storage
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Content Overview
What is inventory management?
Inventory records
Re-order levels
Inventory storage
Inventory delivery

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Inventory Management Means

Properly maintaining
adequate stocks to ensure
uninterrupted service

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Inventory In A Laboratory
Includes:
Supplies
Reagents
Forms
Inventory (or stock) = the supplies and
materials you need for all lab
performance
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Inventory Management Leads to
High Quality Testing
Inventory management:
Ensures availability of materials and kits
when needed
Avoids the use of expired kits
Minimizes wasting
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How Do You Manage Inventory?
You own a small store. You
buy the merchandise from
suppliers and sell them for a
profit. To keep a profitable
business, you must always
have the right items
available for customer
purchase everyday.
What must you do to
maintain adequate stocks?
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Inventory Management Involves
Knowing
What and how much stock you have
When to order fresh supplies
What and how much has been ordered,
when it was ordered
Where all supplies are stored
When and how much fresh stock was
received, and by whom
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Inventory Management Involves
Doing
Performing a stock count
Maintaining proper inventory records
Determining when to re-order
Determining how much to re-order
Placing orders properly
Inspecting delivery of new orders
Ensuring proper storage of inventory

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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.
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Maintain Proper Inventory Records
Stock Card
Simple, heavyweight cards
Kept for each item in stock

Stock Book or Computer Record
Contains listing of all items in the laboratory
Update monthly after physical count
Use information from stock cards


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Stock Card: An Example
Item Name: __________ Unit: ___________
Manufacturer: ________________________
Minimum Stock (Re-Order Level): ___________
Date
Received
From
Issued
to
Quantity
Received
Quantity
Issued
*Balance Lot # Signature
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Stock Book: An Example
Item
Name
Qty
(units)
Requested
Date
Requested
Qty
Received
Date
Received
Lot # Expiry
Date
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Determine When to Re-order
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
Re-order when inventory reaches minimum stock level
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Calculating Minimum Stock Level

Maximum lead time = 2 weeks
Maximum usage/wk = 3 kits
Minimum stock level = 2 x 3 = 6 kits

When only 6 kits are left, place an order
=
Maximum lead
time in weeks
X
Maximum
Usage
Minimum Stock
Level
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Exercise:
Calculating Minimum Stock Level

On average, you use 2 BHCG kits a week.
It normally takes 2 weeks to receive the order
you placed.
You should order more BHCG kits when you
have ____ kits left in the inventory.
=
Maximum lead
time in weeks
X
Maximum
Usage
Minimum Stock
Level
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Determine How Much to Re-order
Never order more than your storage space
can hold
Never order more supplies than you can
use before they are expired
Consider maximum usage plus minimum
stock level
Consider shipping costs when placing
orders
Establish proper full stock level. Re-order
to reach that level.
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Determine Proper Full Stock Level:
An Example
Maintain an inventory that covers a months
maximum usage plus minimum stock level
Maximum lead time = 2 weeks
Maximum usage/wk = 3 kits
Minimum stock level = 2 x 3 =
6 kits

When only 6 kits are left, place
an order.
Usage/Month = 3 kits/wk x 4 wks
= 12 kits
Minimum stock level = 6 kits
Proper inventory level = 12+6 =
18
You must always have 18 kits in
the inventory in the beginning of
each month.
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Exercise: Minimum Stock Level and
Proper Full Stock Level
On average, you use 1 box of gloves
each week (or 4 boxes a month).
It takes 3 weeks to receive the order
you placed.
Determine:
What is the minimum stock level?
How many boxes should be in the
inventory in the beginning of each month?
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Place Orders Properly
An ordering system must be in place
Follow ordering protocol
Ensure relevant ordering (requisition)
forms are on site
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Inspect Delivery of New Orders
Upon receipt:
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

Place items on shelves
New shipments placed
behind existing items
First in, first out
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Summary
What does inventory management mean?
What information is recorded in inventory
record-keeping?
How do you determine minimum stock
level?
How do you determine proper full inventory
level?
What does First In First Out mean?
What procedure should you follow when
receiving new kits and supplies?
How should kits and supplies be stored?
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Key Messages
Maintain an adequate inventory at all time
to ensure uninterrupted service.
Dont let any item run out before re-order.
Never order more than your storage space
can hold. Never order more supplies than
you can use before they are expired.
All items in the inventory must be
accounted for and recorded.
Always inspect new shipment before
accepting.