Support EOQ, Hospital Gloves
This paper takes the reference from Hospital Glove Simulation that describes the various methods and options of inventory management in a hospital. The simulation explains that how the lot sizes, cycle service levels, and safety stock impacts inventory costs. It also explains how demand forecasts help in making the right inventory decisions.
Inventory management is a skillful task of balancing trade-offs between costs and service. It alerts the managers to check the additional cost because of excessive inventory and safety stocks.
Primary objectives of Hospital
There is a rising concern of latex protein-related allergies especially during the surgery operations. As per the stringent directions issued by Infection Prevention Committee, the hospital is directed to use non-latex powder free gloves for surgical purposes and low latex protein powder free gloves for examination purposes. There is dual objective of EVSC, one is to avoid any risk of allergy and the second is to optimize inventory costs to ensure that there are no stock outs.
Decisions about the inventory
It is critical to maintain the safety stock of the inventory of both types of gloves to ensure uninterrupted operation of the hospital. At the same time, the lot sizes is also to be carefully decided to cover up any risks of delay in the supply or over-consumption in some months.
The inventory model used is fixed –Order Quantity Model that is also called as Economic Order Quantity (EOQ). But the simulation model also ensures the availability of the safety stock. It is a multi-period inventory system that is designed to ensure that an item will be available on an ongoing basis throughout the year. Usually the item will be ordered multiple times throughout the year where the logic in the system dictates the actual quantity ordered and the timing of the order. The fixed order quantity models are event-triggered that initiates an order...