Material Management

• What is the primary focus of laboratory management?

  Overseeing acquisition and utilization of supplies
• What are the aims of laboratory management?

  Right material, quantities, time, price, sources
• Who handles material management at the hospital level?

  Centralized material management department
• What are the two sections of the material management department?

  Purchasing and stockroom/warehouse
• What does the purchasing section do?

  Oversees ordering of supplies and invoices
• What is an invoice?

  Itemized document recording delivered products
• What information does an invoice contain?

  Total amount due and payment method
• How can invoices be sent to customers?

  Through paper or electronic means
• When is an invoice issued?

  Prior to customer sending payment
• What is the difference between an invoice and a receipt?

  Invoice is before payment; receipt is after
• Why do clinical laboratories require raw materials?

  For successful operation and patient care
• What happens when equipment is idled due to lack of supplies?

  It results in economic loss for business
• What are the goals of material management?

  Timely supplies, reduced spoilage, avoided delays
• What is the process flow for product management in laboratories?

  • Product specification
  • Orders
  • Receive
  • Record
  • Inventory
• Why is product research important before purchasing?

  To determine the best products for laboratory use
• What considerations are important before purchasing major equipment?

  Written specifications and on-site visits
• How are supplies classified for budgeting purposes?

  As supplies or capital items
• What are the two classifications of supplies?

  Consumed within 1 year or longer shelf life
• Who should place orders for supplies?

  Authorized staff familiar with quality and reliability
• What are the two types of purchase orders?

  Release order and standing order
• What is a purchase order?

  Document authorizing purchase from a vendor
• What should be done upon receiving goods?

  Unpack and inspect as soon as possible
• What must agree before a bill is paid?

  Purchase request, invoice, and packing slip
• What documentation is needed in Material Management Systems (MMS)?

  • Enquiries: Information from vendors
  • Quotations: Price, delivery, payment terms
  • Orders: Contract between buyer and seller
  • Invoices/Bills: Products, quantities, agreed prices
• What is inventory management?

  Continual process of checking stock levels
• What are the three methods to track inventory levels?

  Perpetual, periodic, and random checks
• What is the purpose of stock rotation?

  To arrange supplies from oldest to newest
• What are the low and high points in inventory systems?

  Low point is sufficient supply; high point is excess
• What factors determine inventory limits?

  Delivery time, storage space, shelf life, usage rate
• What does FIFO stand for?

  First In, First Out
• What does LIFO stand for?

  Last In, First Out
• What does FEFO stand for?

  First Expired, First Out
• What are the stock replenishment techniques?

  • Minimum-Maximum: Set point for inventory
  • Just in time: Order only as needed
• What is EOQ?

  Economic Order Quantity for minimizing inventory loss
• What is EOP?

  End of Period Inventory for reordering
• What does ROT allow you to do?

  Retain ownership of goods until payment
• What factors are considered to determine EOQ, EOP, and ROT?

  Annual usage, average daily usage, cost of ordering
• How is average daily usage calculated?

  Annual supplies ordered divided by 365 days
• What does annual holding cost involve?

  Decisions based on bulk orders and space utilization
• How does lead time affect inventory?

  Influences minimum inventory and order quantity