What are the financial problems which poor inventory management can cause in a HCO? What are the appropriate solutions to resolve or prevent such problems?
In your response, please reference the material from McLean, Robert A. (2003). Financial Management in Health Care Organizations (2nd ed.). Albany, NY: Delmar Publishers.
Poor inventory management simply means that you are either holding too much or too little stock. The financial problems of this are:
Too Much Stock:
- Waste – stock becomes obsolete or out of date and ultimately gets trashed. Hence money has been thrown away.
- Inefficient use of funds – stock sits on the shelf for weeks or months not getting used. The money used to buy it could have gained interest over the same period.
- Storage Costs – ...
This solution is comprised of about 250 words and has made reference to the attached material. The style is punchy bullet form so you can take these points and incorporate them in your own words when you produce your own written answer.