Inventory Management Flashcards
Why are effective inventory controls important?
They are important to overall profits.
What must a business have to sell?
Product to sell.
What must be avoided in inventory management?
Outdated product.
What are two key determinations needed in inventory management?
How much product to reorder and when to reorder product.
What should all manufacturer and distributor phone numbers and account numbers be organized into?
One location.
How often should orders be placed to decrease freight charges?
Monthly.
What is a best practice regarding distributors?
Order from as few distributors as possible.
What services can manufacturer and distributor representatives provide?
- Sales information
- Scientific data to team
- Continuing education (CE) for all team members
Name two examples of manufacturers.
- BI
- Zoetis
Name two examples of distributors.
- Patterson Veterinary
- Covetrus
What are some losses associated with poor inventory management?
- Business billed for product never received
- Double billed
- Billed for damaged goods
- Back orders
- Expired items
- Wrong item shipped
- High costs of overnight shipping for products needed ASAP
- Account not credited for returned goods
- Billed for items different than what was received
What is one key to a successful inventory management system?
Buy in volume from one or two distributors.
What should the goal of inventory turnover be?
8 to 12 turns per year.
What should inventory costs be maintained between?
18% and 20% of yearly budget.
What is one advantage of a computer-based inventory system?
Price updates occur automatically when new invoices are entered.
What is a disadvantage of a computer-based inventory system?
Difficult to track exam gloves, gauze, and bandage material.
What is a reorder point?
Point a stock level reaches when it is time to order.
What is the shelf life of a product?
Time from when a product is received until it is sold; should not exceed 3 months.
What factors affect reorder quantities?
- Average daily use
- Turnover goals
- Product expiration
What factors affect reorder points?
- Seasonal products
- Packaging of products
- Lead time
- Average daily use
What is the equation for determining reorder points?
Lead time x Average daily use = Reorder point.
What does keeping as little inventory as possible help with?
Decreased holding costs.
What is a want list used for?
Helps team members recognize when a product is low.
What does just-in-time ordering involve?
Ordering product as needed but before running out.
What should be done with expired medication?
Dispose of expired drug by dissolving in water and pouring over cat litter.
What are Safety Data Sheets (SDS) required for?
All chemicals stored on premises.
Who regulates Safety Data Sheets?
OSHA.
