Supply Chain Management

2838 WordsSep 2, 200612 Pages
Introduction Supply chain management is an integral component of operation management and has a direct effect on how successfully organizations function. The purpose of supply chain management is to remove communication barriers and eliminate redundancies by coordinating, monitoring, and controlling processes within an organization. Identifying the components of the supply chain, facilitating better decision-making, creating improved communication, and identifying weak links in the chain causing bottlenecks in an organization are crucial to supply chain integration. There are three principle elements of supply chain integration: management of information and financial flows, inventory management, and management of relationships of…show more content…
A par level is a target quantity of a supply, based on historical use over a certain time period, established to maintain sufficient levels of inventory. Inventory levels should always be replenished to established par levels to ensure sufficient available supplies without overstocking. The receiving policy must be documented and actively managed to ensure receiving is timely and discrepancies (short shipments, over shipments, rejects, etc.) are consistently processed. Dialysis clinics historically use par levels for re-order and have limited storage areas. With storage a concern par levels are usually set lower than sometimes needed and clinics find themselves running out of needed supplies. Because of the financial constraints the industry faces with minimal payment for treatment received and sometimes gratis care, inventory expenses are closely controlled and the staff members needed to manage the process are usually cross-trained within the clinic. Inventory technicians are usually technicians crossed trained from the patient care staff. If staffing is limited and the inventory technician is needed for patient care a domino effect is created by this decision as follows: • inventory is low or items have run out; • deliveries arrive at the clinic and are placed in bundles in the stockroom; • clinic staff needs items delivered for adequate patient care; • staff removes some inventory from stock before technician can intake and
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