Strategic inventory management: an example of a public hospital

Abstract

Businesses have to develop and implement effective stock policies to maximize profits by minimizing costs in today's market conditions. Since the stocks enterprises between 20% to 60% within total assets of manufacturings,  effective implementation of stock control and management policies, has great importance for the future of business.

Businesses’ execution of it’s stock policies at the lowest cost depends on the forecasting amount of stock based on demand at least error, and minimum stock level determination and the appropriate time and amount of orders given to it. Thus, time and cost savings will be achieved by ensuring balance of continuity and speed in production of goods and services in the production process.

By the rapid changes in consumer preferences, the variety of products, technologies and competitors are rapidly changing and increasing in rate. By increases in product variety, stock control and management is becoming even more difficult and complex.

In recent years, effective and efficient resource use and management began to be kept in the foreground in public institutions as well as private sector. Public hospitals have been diverged from other business such as restaurant and hotel since it  is an inpatient treatment business.

It’s obligation of keeping right supplies in right amount, in the right place at the right time and cost is more strict comparing other institutions.