Assignment $6$ Managing Inventories in Supply Chains

Part $1$: Case Study $-$ Margate Hospital

Cost Containment activities have become particularly important to hospital managers, stimulated by

various revisions in health care reimbursement policies and significant growth in marketing activities by

private sector health care organizations. Recognizing that poor inventory control policies reflect

ineffective use of Organizational assets, many hospital managers have sought to institute more

systematic approaches to the control of supply inventories.

At Margate hospital, analysts collected data of $20$ disposable SKU$$s in a pulmonary therapy unit. These

data are shown in Exhibit below. Three of the SKU$$s are designated as critical to patient care. The

hospital administrator wants to develop better inventory management policies for these items.

Case questions $$

$1.$ Using the case data, propose a breakdown for an ABC analysis, and clearly outline how each

category of items might be managed by the hospital.

$2.$ How do you recommend managing these ABC and critical inventory categories?

$3.$ Can you think of any other inventory management systems besides healthcare where some

SKU$$s might be defined as $$Critical$?$