Why is it important to manage the inventory levels? Can you list some pros and cons for holding a big inventory for the companies? Given lean manufacturing is popular nowadays, many hospitals also go with the lean approach. Can you lean hospital in your area? Will it be pleasant if the hospital run out of supply when patients need them?
Managers must be able to balance between having too much inventory and too little inventory. Inventory management is important because it affects customer satisfaction.
Hospitals, like any other business, want to improve their efficiency and reduce waste. Hospitals are very much dependent on insurance reimbursements for their finances. As a result, a change in insurance policies can have a huge impact on the hospital's ability to continue operations without laying staff off. By managing inventory to reduce costs, hospitals can better retain skilled staff to provide a high quality of patient care.
Pros of having a big inventory:
- The company will have enough products when customers want them, which increases customer satisfaction.
- Having too little inventory leads to high-priced emergency shipments or production. The company can avoid these costs by ...
Pro's and con's for large inventory quantities are discussed in 516 words.