SLP 3 Assignment: WORKING CAPITAL, MATERIALS MANAGEMENT,

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SLP 3 Assignment: WORKING CAPITAL, MATERIALS MANAGEMENT, AND EVALUATING FINANCIAL HEALTH

Homework Assignment:

In the majority of healthcare organizations, materials (including pharmaceuticals and expendable supplies) comprise the largest portion of the non-labor costs in the operating budget – thereby making it deserving of our focus and study. Correct management and control of your inventory has a direct and significant effect on your financial operating costs, and therefore, the total net income of your organization.

The process of materials management (the control of an organization’s inventory, services, and equipment from acquisition to disposition) allows for cost control and also allows the organization to operate correctly – having enough of each needed supply (medical, administrative, housekeeping, and/or clerical) on hand at the precise time it is needed. Once you’ve read the assigned background readings, as well as completed some peer-reviewed research of your own, please answer the following:

  1. What are the best practices in inventory management that healthcare managers should implement and be consistent in using?
  2. How are each of the four methods of valuing inventory used by healthcare organizations?
  3. Choose one expendable item used in the healthcare setting, and show the value calculation for 500 of that particular item, using one of the methods of inventory valuation. Investigate a current-day cost of the expendable item to make your calculations as accurate as possible.
  4. How do we best prepare for uncertainties in our inventory, and what would a correct re-order point be for expendable medical supplies?

SLP Assignment Expectations

  1. Conduct additional research to gather sufficient information to support your analysis.
  2. Provide a response of 3-5 pages, not including title page and references
  3. As we have multiple required items to be addressed herein, please use subheadings to show where you’re responding to each required item and to ensure that none are omitted.
  4. Support your paper with peer-reviewed articles and reliable sources. Use at least two peer-reviewed sources. For additional information on how to recognize peer-reviewed journals, see http://www.angelo.edu/services/library/handouts/peerrev.php and for evaluating internet sources:
    https://www.library.georgetown.edu/tutorials/research-guides/evaluating-internet-content
  5. You may use the following source to assist in your formatting your assignment: https://owl.english.purdue.edu/owl/resource/560/01/. Paraphrase all source information into your own words carefully, and use in-text citations.

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