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TopImportance Of Inventory Management In Healthcare
Unlike other industries, in healthcare management, each item is viewed as critical, and there is a perceived necessity to provide exceptionally high levels of service (Beier & Hoboken, 1995). Moreover, hospitals and other healthcare industry organizations need to prioritize precision over the competition, as errors in this sector can have life-altering consequences. The stakes are high, and the cost of a mistake could potentially be someone's life (Turhan, 2009). Successful inventory management provides healthcare organizations a balance between maintaining adequate stock to meet patient demand and avoiding excess inventory that can lead to waste or expiration. While managing demand and supply uncertainties can reduce inventory costs and risks to some extent, focusing on internal controls can offer a significant opportunity to minimize inventory costs and environmental impacts (Rubigha, 2020) Inventory management in healthcare is important for securing medical supplies, optimizing operational efficiency, and ultimately enhancing patient care (Lomnitz, 2023).
Components and Challenges Within the Healthcare Inventory Management System
A healthcare inventory management system is marked by stages that contribute to the effectiveness and efficiency of the system. The first stage is the procurement of medical supplies. Next is the storage stage, where inventory integrity and shelf life are maintained. Next, in the usage tracking stage, consumption patterns are monitored. Last are the ordering/reordering, technology integration, and risk management stages (Lomnitz, 2023). Current models assume demand as a random variable, but factors like changing patient conditions and treatment responses impact medication demand. Limited shelf life, high costs, and the need to minimize waste complicate inventory management (Priyan & Uthayakumar, 2014). Healthcare institutions depend on multiple vendors, making maintaining connections and ensuring timely deliveries challenging, especially with limited storage space. Errors in inventory can have life-threatening consequences, emphasizing the need for accurate tracking. Decision-making challenges persist within healthcare systems, hindering resource optimization and introducing errors in the item master. Handling epidemiological challenges, supplier inconsistencies, SKU management complexities, and addressing environmental concerns in healthcare inventory management further add to the complexity. Strategies involve investing in early detection, developing flexible healthcare systems, prioritizing research, implementing dynamic supply chains, and fostering an agile healthcare system. Overcoming these challenges requires a multidisciplinary approach and collaborative efforts to standardize metrics and incentivize sustainable practices (Balkhi et al., 2022).
Research Aims And Objectives
This research paper addresses six key objectives outlined as follows:
Objective 1: Explain traditional healthcare inventory management and associated challenges/limitations.
Objective 2: Identify technology management models in healthcare inventory management and their associated limitations.
Objective 3: Perform a comparison of three-echelon distribution networks and determine the impact of their efficiencies.
Objective 4: Outline the role of decision-making in healthcare inventory management.
Objective 5: Demonstrate case studies of innovative inventory management in healthcare.
Objective 6: Determine the aspects of lean and efficient inventory management in healthcare.
The aim of this research paper is to determine: