Webcast: How Much is Enough -- Managing Safety Stock for Hospital Supplies

Dr. Lars Maaseidvaag, Vice President - Product Development, MoreSteam

Managing supply levels oftentimes falls victim to the Goldilocks syndrome - too much or too little in search of that "just right" level.

Hospitals face an increased challenge. Stock-outs can cause delays in providing medical treatment as team members search nearby carts, cabinets, and supply closets for needed supplies. On the other hand, overstocking adds more costs to already escalating healthcare costs.

The answer? Many hospitals are implementing a Lean system for managing those supplies. Whether in a hospital, office, or shop floor environment, materials are typically managed across many points-of-use served by a centralized supply distribution center.

In this session, the following key points will be covered:

• How to balance the cost of supplies vs. the cost of transactions in designing a Lean replenishment pull system and two-bin system of inventory
• How to determine optimal safety stock levels based on factors including: variation in demand, availability of replenishment, multiple points-of-use, and satisfactory substitutes
• How to "stress test" our concepts using a discrete event simulation to model the movement and consumption of supplies