Inventory, also known as stock on hand, is a valuable managerial asset as well as a significant financial investment. The Medical Logistics Department is in charge of the official inventory.
Inventory control procedures are referred to by a variety of terms in this section. All of the terminologies used in inventory control are defined in NAVSUP P-485.
Why does the Navy need an accurate physical inventory?
A precise physical inventory is required for effective inventory management. A physical inventory’s main goal is to verify that the on-hand inventory balance matches the computerized stock records. The Inventory Management or Stock Control department initiates inventories.
What are the goals of inventory management?
The aim is to have the appropriate goods in adequate quantity, at the best price, and at the right time for the client. The Prime Vendor program has been the most effective effort for streamlining medical/dental logistics. This quick reaction time enables customers to order just the amounts they need, saving money, human resources, and storage space by reducing the amount of money, people resources, and storage space required to maintain greater quantities of material.
How does the Navy perform inventory procedures?
A thorough and accurate item count is required by proper inventory processes. The significance of a full, accurate, and legible inventory is essential to a successful and efficient supply chain. Inventories are performed to bring stock and stock records into agreement (also known as reconciliation).
- Compare the inventory count sheet stock number to the stock number on the material.
- Make sure the unit of concern is correct.
- Count the item and record the overall count on the inventory count sheet by unit of issuance. Make careful you count the material in all of the places where it is mentioned.
- Check all of the mentioned locations for the stock number.
- When you’re finished with each count sheet, turn it in.
- A second count is needed if there is a difference between the quantity reported in the automated inventory system and the actual count. The object should not be counted a second time by the same individual. A third count will be performed if the second count does not match the quantity in the inventory system or the first count. Counting will go on until two counts are equal! If any of the counts don’t add up, double-check the unit of problem and the locations. The supervisor should go through the counts to see why they are different.
What are the different types of inventory?
A variety of inventories serve different purposes. Controlled substances, bulkhead-to-bulkhead, particular commodities, special materials, spot, velocity, random sample, departmental, and war all fall under this category of inventory management. Specific commodities and special materials are listed separately.
The Controlled Substances Inventory Board conducts an unannounced monthly inventory.
A yearly physical inventory of all the inventory in given storage is performed. The audit is carried out when a random sample of the storeroom fails to achieve a 90 percent accuracy rate in the inventory or when the custodian is changed.
Specific Commodity Inventory
All products with the same symbol or federal supply class (such as 6515/6505), or that serve the same operational purpose (e.g. bandages, IV fluids, needles, etc.) are counted physically.
Special Material Inventory
The physical count of all objects that are expressly designated for independent identification and inventory control due to their physical features, costs, or other reasons. Items labeled as classified or dangerous may be included in special material inventories, but this is not the only option. This material must be physically inventoried on a regular basis in accordance with NAVSUP P-485.
What is spot inventory in the Navy?
Scheduled method for validating the existence of a certain item in physical inventory. When a request shows that an item is out of stock, but the stock records show that it is, this test is run. It is necessary to perform a spot inventory when ordered to do so by superiors or when a single item is discovered to be flawed.
What are Location Surveys?
The correctness of the location should also be checked during spot checks during inventory. If needed, location surveys can be carried out independently of one another. By the end of the project, 98 percent of the real stock locations will have matched the inventory management system’s records.
What is a Velocity Inventory?
Required for products with a high rate of turnover. Faster things have more space for mistakes, therefore this theory is predicated on that.
What is Random Sampling Inventory?
This is a planned yearly inventory. It is used to check the correctness of a stock record for a certain type of material that is currently in stock.
What is a Department Inventory?
Medical Logistics inventory records do not include inventories kept in departments or clinics, although these items represent a significant financial outlay and are an important asset to the command. There should be adequate inventory on hand to fulfill both normal and peak demand while keeping the financial commitment low.
What are War Reserves?
Material requirements will be identified to support operations that have an enlarged mandate during conflict and are referred to as War Reserve Materiel Requirements or Mobilization Requirements. In order to rotate inventory, war reserve material is included in the inventory, but it cannot be used for normal operations.
Operational requirements control the release of war reserve material assets, which are governed by the OPNAVINST 4080.1 series.