# Presentation: 129551

## Module 10: Inventory

- Managing Stocks at the HIV Rapid Testing Site

## The Lab Quality System

## Learning Objectives

- At the end of this module, you will be able to:
- Maintain proper records
- Maintain proper level of consumables
- Use first-expiry-first-out concept when managing stocks
- Inspect delivery of supplies before acceptance
- Identify lot numbers and expiry dates
- Keep kits and supplies in proper storage

## Content Overview

- What is stock management?
- Record keeping
- Re-order levels
- Receipt of consumables
- Storage of consumables

## Stock Management Means...

**Properly maintaining adequate supplies to ensure uninterrupted service**

## Stock at a Rapid Test Site Includes...

**Supplies at Workstation**

***Insert photo of stockroom***

## Stock Management Leads to High Quality Testing

- Ensures availability of materials and kits, when needed
- Avoids the use of expired kits
- Minimizes wastage

## How Do You Manage Stock?

- You own a sundry shop.  You buy the merchandise from suppliers and sell them for a profit.  To keep a profitable business, you must always have the right items available for customer purchase everyday.
- What must you do to maintain adequate stocks?

## Stock Management Involves Knowing...

- What and how much supplies/consumables you have
- When to order
- What and how much has been ordered, when it was ordered
- Where to store stock
- When and how much fresh stock was received, and by whom

## Stock Management Involves... 

- Performing a “stock count”
- Maintaining proper inventory records
- Determining when to re-order
- Determining how much to re-order
- Placing orders properly
- Inspecting delivery of new orders
- Ensuring proper storage of stock

## Perform a “Stock Count”

| What is it? | Physically counting each item in the stock |
| --- | --- |
| When is it done? | Recommended at the beginning of each month |
| Who does it? | A designated person |

**All items must be accounted for. Everything that **
**comes in and goes out must be recorded.**

## Maintain Proper Inventory Records

_**Stock Card**_
- Simple, heavy weight cards
- Kept for each item in stock

_**Stock Book **_
- Contains listing of all items in the store
- Update monthly after physical count
- Use information from stock cards
- Also called register

## Stock Card: An Example

- Item Name:  __________ Unit: ___________
- Manufacturer: ________________________
- Minimum Stock (Re-Order Level): ___________

| Date | Received
From | Issued
 to | Quantity
Received | Quantity
Issued | *Balance | Lot #  | Signature |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |

## Stock Book: An Example

| Item Name  | Qty (units) Requested  | Date 
Requested  | Qty 
Received  | Date
Received  | Lot #  | Expiry
 Date  |
| --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |

## Reconciling Stock with Records

**What should be done to minimize loss?**

**Ideal**

**Reality**

**# Tests Performed = Stock Depletion**

**# Test Performed ****+ loss**** = Stock Depletion**

## Determine When to Re-order

**Terminology:**
**Minimum stock** -  Amount of stock required to support testing operations until additional supplies are received
**Lead time** – Time between placing an order and receiving it
**Maximum usage** – number of test kits used in a given time period

- Re-order when stock reaches minimum level

## Calculating Minimum Stock Level

**Example:**
- 		Maximum lead time = 12 weeks
- 		Maximum usage/wk = 3 kits
- 		Minimum stock level =  12 x 3 = 36 kits** **
- When only 36 kits are left, place an order

## Exercise:Calculating Minimum Stock Level

- On average, you use 5 Uni-Gold kits a week.
- It normally takes 12 weeks to receive the order you placed.
- You should order more Uni-Gold kits when you have ____ kits left in the inventory.

## Determine How Much to Re-order

- Consider stock consumed, borrowed, expired, wasted, pilferage
- Never order more than your storage space can hold
- Never order more supplies than you can use before they are expired
- Consider maximum usage plus minimum stock level

- Establish proper full stock level.  Re-order to reach that level.

## Determine Full Stock Level

**Maintain stocks that cover **
**maximum usage plus minimum stock level**

**Maximum usage /wk = ****70**** tests**
**# tests / month = ****70 x 4 **
**280**** tests used per month**
**Assuming 20 tests per kit, how many kits are used per month?**
**280 / 20 = 14**

**Lead time = 12 weeks or 3 months**
**Minimum stock level = 14 kits x 3 months = 42 kits**
**Full stock level = 42+14 = 56**
**You must always have 56 kits in stock at the beginning of each re-order cycle. **

## Exercise: Determine Full Stock Level

- Determine:
- What is the minimum stock level?
- How many test kits should you have in the beginning of each re-order cycle?

**Maximum usage /wk = 80 tests**
**How many tests are used per month?**
**_________ tests/month **
**Assuming 15 tests per kit, how many kits are used per month?**
**_________  kits/month**

**Lead time = 12 weeks or 3 months**
**Minimum stock level = _____ kits**
**Full stock level = ______ kits**
**You must always have _____ kits in stock at the beginning of each re-order cycle (3 months). **

## Place Orders Properly 

- Describe ordering system that is in place
- Provide specific instructions for placing orders
- Instruct trainees on how to complete specific forms related to inventory/stock management.
- Describe contingency plan when stock is not available
- National contingency plan
- Site contingency plan
- Describe communications / feedback systems to central level
- How to cease standing deliveries
- Why should you cease orders
- What information should be fed back to central procurement or stores, e.g., updated consumption rates during scale up

## Inspect Delivery of New Orders 

- Upon receipt:
- Verify contents of order received with requisition
- Check integrity of received supplies
- Date each item received
- Note expiration date
- Store new shipment behind existing shipment
- Create or update records

## Examine Lot Number & Expiry Date

## Ensure Proper Storage of Inventory

- Keep in a clean, organized, and locked storeroom
- Store according to manufacturer’s instructions
- Place in well ventilated room
- Store away from direct sunlight

- Place items on shelves
- Organize existing and new shipments by expiration dates

**First expiry, first out**

## Summary

- What does inventory management mean?
- What information is recorded in inventory record-keeping?
- How do you determine minimum stock level?
- How do you determine proper full inventory level?
- What does “First Expiry First Out” mean?
- What procedure should you follow when receiving new kits and supplies?
- How should kits and supplies be stored?

## Key Messages

- Maintain an adequate inventory at all times to ensure uninterrupted service.
- Don’t let any item run out before re-order.
- Never order more than your storage space can hold. Never order more supplies than you can use before they are expired.
- All items in the inventory must be accounted for and recorded.
- Always inspect new shipment before accepting.