Sign In
Not register? Register Now!
Essay Available:
Pages:
2 pages/β‰ˆ550 words
Sources:
Check Instructions
Style:
APA
Subject:
Health, Medicine, Nursing
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 8.64
Topic:

427 TD 3. What is the best way to evaluate your inventory management performance?

Essay Instructions:

In the majority of healthcare environments, so many types of expendable medical supplies are needed. You’ll have a limited amount of space to store them, and limited budgetary funds to purchase each type of them. There will be an uncertainty of who’s coming in your facility’s doors, and for what conditions they need care. You’ll make your best prediction of how many will come to your facility this year vs. last year and the year before, but those numbers won’t be exact – as demographic and economic trends can easily influence them. Given all the uncertainty in the healthcare environment (that’s not going to go away) - what is the best way to evaluate your inventory management performance? How are budgetary item shortages best safeguarded against? Explain your answers in a concise 200-word response, using peer-reviewed sources to support your points.

Essay Sample Content Preview:

INVENTORY MANAGEMENT
Name of Student
Name of Institution
Inventory Management
What is the best way to evaluate your inventory management performance?
Many people think that they have repressed everything in inventory control. However, there may be loopholes where money get lost to unknowingly. But to curb this, a person or an organization needs to focus on the key performance indicators (KPI). This will help to make better decisions as well as make the required changes. The following are some of the ways that can help gauge inventory performance.
The first one is calculating your gross margin. This is done by subtracting the cost of goods sold from the sales income then divided by the total sales income. It is a basic and easy method to use because the percentage will always tell the company the amount of returns it gets after the sale of goods (Singh & Verma, 2018). That is, the higher the percentage, the more the company’s revenues whereas the lower the percentage the lesser the company’s revenue. A lower percentage, poor gross margin, will therefore show the need for inventory control.
Secondly, a person or company should learn their turnover ratio. Inventory management is all about achieving and sustaining your turnover ratio. Turnover ratio tells a company if the inventory level meets the market demands. Generally, every company aims at having a high turnover ratio which consequently results to large sales (Balcik et al, 2016). If the turnover is lower, like less than one, then the company is on the verge of losses as well as poor inventory management schemes.
Thirdly, for a company to evaluate its inventory management, it should invest in the best KPI software. This software will enable the business to trace and enhance the company’s inventory management performance as well as carry on with inventory management demands. The software is flexible (Singh & Verma, 2018). Therefore, a company can optimize its operations in the absence of an expert in order to make profits.
How are budgetary item shortages best safeguarded against?
Accumulating safety stock is one of the most commonly used ...
Updated on
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:
Order

πŸ‘€ Other Visitors are Viewing These APA Essay Samples: