Page 21 - Inventory Manager

10002.1 – Controlling Inventory Guidelines

Inventory is best kept at a level where running out is always imminent, but rarely happens. This will
afford the hospital the best return on the inventory carried.

Stock Levels – this is the best level of inventory to keep. Typically you will want to keep anywhere from
a 2 to 4 weeks (.5 to 1 month) on hand. The lower the better. To determine how much you sell of a
particular item, you would.

1. Run a report in AVImark to find out how much you sold
during a certain period.
a. If you will be using this info off-hand, it is best to go
with 10 months. Then all you have to do is move
the decimal.
b. If it will be input into a spreadsheet, then choose
the most recent 12 months
2. Divide the amount sold by the time period: Sold / time =
use
3. Once you have the use per month, you can then decide on
how much you need to keep.
a. Max - should be set at 1 month supply
b. Min – should be set at 2 weeks or 1 unit depending
on the need or pack size
4. Use these numbers to set stock levels and reorder points
5. When you reorder, you should not push your stock level
above a 1 month supply (if possible)

Reorder Point: The stock level which triggers an order. (Usually, 1 unit or a 1 – 2 week supply)

Reorder Amount: The amount that, when added to the supply on hand leads to the desired stock level
(2-4 weeks)

Inventory levels and use can vary seasonally, but also can vary based on new introductions to the
market or a new associate joining the practice.

Overstock and overlapping drugs

Overstock should be returned as soon as possible

Look for drugs that may be used in the same circumstances and work with the doctors to remove one of
the drugs from the list of what you carry.

- NSAIDs and FOOD are great examples

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