INVENTORY CONTROL

What is inventory?

Inventory is defined as the quantity of goods or materials on hand.

Inventory control

Inventory control is defined as a tool of management which is used to maintain an economic minimum investment in materials and products for the purpose of obtaining a maximum financial return.

Goal

To support the attainment of the organization primary objective i.e. Patient care with the optimum investment in inventories. Optimum investment may or may not be a minimum investment. It depends on various factors.

· The number of patients

· Patient mix

· Type of services provided

Aim

· To ensure that there is adequate stock of items when required and there is a continuous supply but at the same time not to have too much.

· To ensure that the resources available are most effectively and efficiently used.

Objectives

v To reduce financial investment in the inventories

v To facilitate organization operations

v To avoid losses from inventory obsolescence

v To improve patient care services

Main principle of inventory control

o The item for which annual consumption is high, orders is placed quite frequently so that the inventory level is as low as possible. The items whose annual consumption is not high, sufficient stocks are maintained and the orders are placed less frequently.

o Control is exercised by fixing a minimum and maximum for each item. An item is recorded in such a way that the stocks level, at any given time, never goes beyond the minimum level fixed for it.

o The quantity to be reordered is so adjusted that the stocks does not exceed its maximum level.

Criteria for inventory control

Ø TIME AND EXTENT OF PROBABLE USE

Ø OBSOLESCENCE

Ø STORAGE COSTS

Ø SHRINKAGE

Ø TRANSPORTATION COST

Ø INVESTMENT COST

Ø COST TO PURCHASE

Ø QUANTITY PRICE DIFFERENTIAL

Ø MARKET CONDITIONS AND PRICE TRENDS

Ø TIME REQUIRED FOR DELIVERY

Ø AVAILABILITY OF A SUBSTITUTE

Ø CASH FLOW

Ø ALTERNATE INVESTMENT POTENTIAL

Ø AVAILABLE SPACE

Ø WHETHER IT IS MORE ECONOMICAL TO MAINTAIN AN ITEM THAN TO PURCHASE IT ON DEMAND

Reasons for INVENTORY INBALANCE

I. Failure to review and revise, as necessary, inventory policies on a regular basis

II. Failure to participate in a program of long range planning and policy determination

III. Failure of the system to react to rapid changes in usage or to accurately forecast future needs and requirements.

IV. Failure to develop adequate services of supply break downs in transportation etc.

V. Failure to give the cooperation and assistance to using departments and to properly determine their needs and direction of operation.

VI. Lack of standardization

VII. Failure to base buying on actual needs or scientific facts.

VIII. Failure to obtain and train appropriate personnel

IX. Inability to comprehend and to utilize the mathematical and scientific tools of inventory control such as reorder points, economic order quantity (EOQ), ABC, VED. FSN, SDE, HML ANALYSIS

Inventory analysis

1) Over all analysis

2) Category analysis

3) Individual item analysis

Over all analysis

· Bird eye view of total inventory over a period of time to find out the trends if any

· Important for keeping the track of inventory behavior

· Monthly holding of inventory in monetary terms calculate and compared to that of average monthly consumption. This is inventory carried index. This should be 3 in health organizations i.e. three months requirement should be available in hospital stores.

Category analysis

§ Stocks - category (group of similar items) wise analyzed

§ Targets fixed for each category according to various conditions like lead time, nature of items and source of supply etc.

§ Category with low stocks may need a revision and those with higher stocks may require examination for reduction in inventory.

Individual item analysis

Individual item can be classified

According to their

· USE

· CONSUMPTION PATTERN

· VALUE

· SOURCE OF SUPPLY

· LEAD TIME

Classification

1. ABC ANALYSIS

2. VED ANALYSIS

3. SDE ANALYSIS

4. HML ANALYSIS

5. FSN ANALYSIS

ABC ANALYSIS

Always better control

Analysis of stores on cost criteria

Cost of each item is multiplied by the number in a given period of time tabulate the numerical value in descending order

ü 10% of items account for the 70% of the budget

ü 20% of items account for the 20% of the budget

ü 70% of items account for the 10% of the budget

ABC ANALYSIS

ABC ANALYSIS

A large number of items consume only a small percentage of resources and vice versa.

Category A items

· Ordered more frequently

· Procured on a planned basis

· Estimate the expected future consumption in advance

· Annual contracts with scheduled deliveries

· Revise frequently the quantities, reorder points and safety stocks for items not covered by long term contracts

· Purchasing department should make maximum effort to expedite the delivery of these items as these are to be stocked as minimum

· To be looked by top executive in purchase department

Category B items

· The policies for b items are generally intermediate between a and c items

· Order quantities, reorder points and safety stocks should be fixed for b items barring exceptions and revision only once in a year

· Annual or six monthly contracts with scheduled deliveries can be used to an advantage for b items

· Should be ordered less frequently than a items

Category C items

· Liberal quantities can be kept in stock.

· Less orders to reduce paper work.

· Take advantage of quantity discount for bulk purchases.

· Authority could be delegated to junior executives.

· Stocks and issue records can be minimized to the extent the rules allow.

VED analysis

Analysis based on their criticality

Classified into

Ø Vital

Ø Essential

Ø Desirable

Use of ABC AND VED analysis

Findings of ABC AND VED analysis can be coupled to evolve the priority system.

Grouping will depends on

Strategy of management

Environment of functioning

FSN ANALYSIS

Items can be classified on the basis of consumption of each item

· Fast moving

· Slow moving

· Non moving

An understanding of movement of items helps to keep the proper level of inventories by deciding a rational policy of reordering.

FSN ANALYSIS (NON MOVING ITEMS)

· When ever there is huge stock of non moving items in store the following action can be taken

· Circulate the store information bulletin to all dispensaries and other similar organizations for their probable use or for sale or for exchange.

· Supplier can also be contacted for exchange.

· Study the reasons for accumulations of items and the remedial measures

SDE ANALYSIS

Based on the availability position of an item

§ S items scarce in the market

§ D items difficult to get

§ E items easily available

HML ANALYSIS

Cost per item of per unit is the criteria

o High cost items

o Medium cost items

o Low cost items

Keep control at dispensary level and for deciding the frequency of physical verification

LEAD TIME, BUFFER STOCK, REORDER LEVEL

Lead time

Lead time is the average duration of time in days between placing of an order and the receipt of materials

Orders can placed at a time when the existing stocks are sufficient for the needs of the organization during the lead time.

Internal lead time

External lead time

Reorder level

· It is the stock at which fresh order has to be placed.

· It is equal to the average consumption per day multiplied by lead time plus the buffer stock.

· It ensures that chances of stock out are practically nil.

Inventory cost

· Basic problems

· What quantity of item should be ordered

· When should an order be placed

· Three cost factors are important for deciding the above problems

· Cost of materials

· Inventory carrying cost: for keeping the items in stock is around 20 % of total cost

· Ordering cost: cost on staff salaries, depreciation, traveling etc.

Buffer stock

· It is the quantity of stores kept apart as a safeguard against the variations in demand and procurement period.

· It can be used only at time of emergency for unforeseen demands.

· It is the difference between the maximum and average consumption rate per day multiplied with the lead time for the item.

ECONOMIC ORDER QUANTITY SYSTEM (EOQ)

Material are purchased in predetermined economic quantity taking into consideration the different cost factors

At particular quantity of item to be ordered, the inventory carrying cost and ordering cost will be equal and the total of the two will also be the lowest

The formula is eoq = √2ua/ic

u: expected annual usage of the item

a: ordering costs per order of material

i: inventory carrying cost as percentage of average value of the material

c: unit cost of the item

ECONOMIC ORDER QUANTITY SYSTEM (EOQ)

· In this system reorder levels for each item have to be worked out

· Advantage is that inventories can be kept at optimum levels

· Disadvantage is detailed calculations for working out order quantities and reorder levels are required

· This system can be put into operation for items which show reasonably stable usage rate and lead time

DR MARWAH

PROBLEMS RELATED TO STORE

If answer to the following questions is yes than there are problems inyour store

 

l       DID YOU CHANGE YOUR PATIENT CARE SCHEDULE DUE TO NON AVAILABILITY OF MATERIAL?

l       ARE THE INVENTORIES IN YOUR ORGANISATION INCREASING AT A RATE HIGHER THAN THE RATE OF INCREASE OF PATIENT CARE SERVICES?

l       IS THE QUANTUM OF PURCHASES CONSIDERABLY MORE OR LESS THAN THE CONSUMPTION?

l       ARE THERE ANY FREQUENT COMPLAINTS AGAINST SHORTAGE OF DRUGS AND OTHER SUPPLIES?

l      IS THE QUANTUM OF LOCAL PURCHASES INCREASING?

l      IS THE SPACE REQUIREMENT FOR THE STORE INCREASING AT A REGULAR RATE?

l      IS THE NUMBER OF PURCHASE ORDERS INCREASING?

l      ARE SOME OF THE HOSPITAL FACILITIES LYING IDLE BECAUSE OF NON AVAILABILITY OF MATERIALS?

 

PROBLEMS RELATED TO STORE

l       REASONS FOR THE SHORTAGE / NON AVAILABILITY OF ITEMS

l       RESOURCES CONSTRAINTS

l       ORDERS NOT PLACED TIMELY

l       INAPPROPRIATE REORDER LEVEL OF ITEMS

l       PROCESSING TIME FOR APPROVAL IS LONG

l       AVERAGE TIME REQUIRED BY THE SUPPLIER IS ALSO LONG

l       PART EXECUTION OF ORDER BY THE SUPPLIER

 

REASONS FOR THE SHORT EXPIRY ITEMS

l        PLACING LARGE ORDER OF SHORT EXPIRY ITEMS

l       ACCEPTING NEAR EXPIRY ITEMS

l       NOT FOLLOWING F I F O

l       CHANGE IN USAGE PATTERN

PROBLEMS RELATED TO STORE

l   

REASONS FOR THE INVENTORY SHORTAGE / EXCESS VIS-À-VIS STOCK REGISTER

l      PILFERAGE

l      INEFFICIENCY

l      IMPROPER CHECKS

l      ISSUE WITHOUT INDENTS

l      ERROR IN POSTING OF ENTRIES

--
Dr Marwah

FENCING OF SITES OF CGHS DISPENSARIES
The Government has started fencing of sites allotted to the Central Government Health Scheme (CGHS) dispensaries in the National Capital Territory of Delhi. The fencing is constructed by the Central Public Works Department (CPWD).

Fencing on some of the plots allotted to CGHS dispensaries has been completed. About Rs.7.50 lakhs has been spent for DIZ area, Basant Vihar and R.K. Puram.

Fencing of sites allotted to the CGHS dispensaries in Pushp Vihar has been started. Fencing at two sites of Dilshad Gardan could not be started for want of funds from CGHS dispensaries. The plot in sector-IV DIZ area has been encroached by jhuggi and jhoparies. In sector-IV, Motia Khan, the possession of plot of dispensary has not been handed over to CPWD. In Vikaspuri, the possession of plot of dispensary has not been handed over to CPWD.

Encroachments on plots allotted to CGHS dispensaries have been removed in all areas except in the case of sector-II DIZ area where a narrow strip of 2.5 metres has been left to serve as approach road.


I came across the above news. So I thought to post it on this blog.

Dr Marwah

Sulbutiamine (Arcalion)_ It is available for over-the-counter sale as a nutritional supplement

Sulbutiamine

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Sulbutiamine (brand name: Arcalion®) is a precursor to thiamine (i.e., vitamin B₁). It is indicated for the treatment of asthenia.^[1] Furthermore, the ability of sulbutiamine to reduce fatigue is considered desirable by athletes, and it is available for over-the-counter sale as a nutritional supplement. Additionally, the demonstrated ability of sulbutiamine to improve memory in rats^[2] and patients of schizophrenia^[2] suggests that it is a nootropic.

Effects

Sulbutiamine reduces fatigue, memory difficulties, intellectual tiredness and may speed convalescence.^[3]

Dosage

Sulbutiamine is sometimes supplied in 200 mg tablets. The proper therapeutic dosage has been reported to be 12.5 mg/kg,^[2] which corresponds to 850 mg for a 68 kg (150 lb) person. However, it should be noted that dosage recommendations vary; the manufacturer of Arcalion, for example, recommends no more than 600 mg per day.

Sulbutiamine
Systematic ( IUPAC) name
[4-[(4-amino-2-methyl-pyrimidin-5-yl)methyl-formyl- amino]-3-[2-[(4-amino-2-methyl-pyrimidin-5-yl)methyl- formyl-amino]-5-(2-methylpropanoyloxy)pent-2-en-3- yl]disulfanyl-pent-3-enyl] 2-methylpropanoate
Identifiers
CAS number	3286-46-2
ATC code	A11 DA02
PubChem	71124
Chemical data
Formula	C32 H46N8 O6S2
Mol. mass	702.89 g/mol
SMILES	search in eMolecules, PubChem
Synonyms	Arcalion, bisibuthiamine, youvitan
Pharmacokinetic data
Bioavailability	?
Metabolism	?
Half life	5 hours
Excretion	Renal
Therapeutic considerations
Pregnancy cat.	?
Legal status
Routes	Oral

--
Dr Marwah

arcalion / salbutiamine Discussion of Avant Labs Supplements ONLY

Full Version: arcalion / salbutiamine?

Avant Labs > Avant Labs Supplements > Discussion of Avant Labs Supplements ONLY

triguy

Jan 30 2004, 02:41 PM

anyone got any info or experience wit this? copyed it from a website

Sulbutamine Details


"For more than 5 years, I have labored to bring this ingredient to the US supplement market place. Finally, after a torturous path I managed to find a manufacturing partner with the necessary technical skills and entrepreneurial mindset to help me make this product a reality. The end result is that we are currently introducing this powerful nutraceutical ingredient to a select group of companies and Avastar is at the top of the list!



I first used sulbutiamine as an athlete more than a decade ago. As a professional cyclist, sulbutiamine, or Arcalion as it is sold in Europe, was something of a secret weapon for many pros. Because it is a derivative of the B Vitamin, thiamin, it is legal for all drug-tested competition including the Olympics, and after seven hours on the bike it was something that could help bring you back from the dead before the finish line.

When I retired from cycling, I'd all but forgotten about the stuff, until I hooked up with Charles Poliquin who was working with me on putting some real muscle on my puny frame. One day in passing he mentioned that used to love this stuff called Arcalion and it got me thinking.

A quick trip to the research library gave me all the information I needed to send me on the long path to bringing sulbutiamine to the US. It turns out that sulbutiamine is considered a vitamin co-factor which means it squeaks by the FDA.

While I won't bore you with the details of how I finally got the stuff made, I will tell you why I think sulbutiamine is amazing for both strength and power athletes (from bodybuilders to professional baseball players) and endurance athletes (like cyclists).

Sulbutiamine's Effects
Sulbutiamine has been shown to have a number of profound effects upon physical and intellectual performance, it can help alleviate depression and the fatigue commonly associated with depression, will help normalize sleep wake cycles, improve motor performance, increase maximal strength and even help improve your visual acuity.

All in all, this is a pretty impressive list. Especially since these aren't marketing claims but clinically documented effects. Remember, like vinpocetine, sulbutiamine has been used as a pharmaceutical agent in Europe for over twenty years.

From a scientific standpoint the way that sulbutiamine works has been fairly well defined. The compound, which is a linkage of two modified thiamin nuclei, is highly lipid-soluble, facilitating rapid gut absorption and crossing of the blood-brain barrier.

By injecting animals with radio active dye it has been determined that sulbutiamine levels are highest in the reticular activating system, the limbic system and the cerebellum. Interestingly, these regions of the brain are densely packed with cholinergic and serotonergic neurons. Incidentally, neurons are often grouped by virtue of their chief neurotransmitter. It is understood that by activation of these particular groups or neurons, sulbutiamine exerts its physical and psychological effects.

Sulbutiamine in the real world
Back when I was a professional cyclist my experience with sulbutiamine was that it helped bring me back around towards the end of long races. I noticed that my focus was sharper, that my legs didn't feel quite so dead and that my reaction time improved.

As a bodybuilder I noticed that it made me stronger in the gym and helped get me "up" for workouts when I felt a little tired on my way into the gym. Research confirms that both animals and humans given sulbutiamine perform better on a variety of both physical and mental tests, including memory, resistance to fatigue and absolute strength.

Unlike caffeine or ephedra, however, sulbutiamine is subtle. You will not feel "jacked-up" and you certainly won't get that shaky or jittery feeling that people sometimes experience when taking stimulants. If you expect that sort of sensation, you might think that sulbutiamine isn't working, but if you are an experienced athlete and have some method of tracking your performance such as knowing your weight for sets and reps of specific exercises you should see a reasonably dramatic improvement in your capabilities with a single dose!

That's right! Within 30 to 45 minutes you're performance (along with your memory and cognitive ability) will be measurably improved. The other really cool thing about sulbutiamine is that it also helps normalize sleep wake cycles which can get you back on track if you've been having trouble sleeping and/or do lots of traveling and thus get jet lagged from time to time.

Right now, sulbutiamine is only available in a very few products, most importantly, in two of Avastar's formulas; Ravive and Revyte. Both products are state-of-the art energy concentration and recovery products that can help sharpen you up, increase your concentration and energy levels, improve memory, mood and athletic performance, and in the case of Ravive, even help you feel more like yourself after a hard night on the town.

Final Thoughts
Sulbutiamine is one of those ingredients that you really have to try to believe. It can have a profound effect upon your training as well as other areas of your life. If you happen to be a student, an executive or anyone under stress you will quickly see just how valuable an addition sulbutiamine will be to your supplement regimen. I wouldn't have spent more than half a decade trying to get sulbutiamine made if it wasn't"

ergoman500

Jan 30 2004, 04:11 PM

Regular thiamine supplemented at 50-200mg/day acts as a acetylcholine/cholinomimetic in adult humans. Also mood-elevating/anti-depressant effects are commonly noted whether the subjects are "deficient" or not in thiamine. Slightly improved muscular endurance has also been reported in small trials using trained athletes.

IMO, many, if not all of the benefits of arcalion/salbutiamine can be experienced using straight thiamine/vitamin-mineral supplements.

I'm quite familar with Arcalion and have not tried it because I don't see the benefits overall being worth using - compared to thiamine's -- although I am sure some would likely experience slightly better improvements using Arcalion with or w/o Thiamine supplementation...

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--
Dr Marwah