Assignment: WORKING CAPITAL, MATERIALS MANAGEMENT, AND EVALUATING FINANCIAL HEALTH
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?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.