Supply Chain Management

Good supply chain strategies aim to maximize return on investment, minimize supply and inventory costs, and improve service levels (Langabeer, p. 218).For this Discussion, you will focus on a specific type of medical supply and explain strategies and barriers in managing its supply chain.

Begin by selecting a medical supply to research and examine in terms of its supply chain management. This supply may be a type of drug or pharmaceutical, a medical-surgical supply (such as injection syringes), or a medical device (such as a pacemaker). For ideas on supplies to choose, see Ozcan, page 265. Identify also the health care setting and end user for which this supply is intended, such as a patient in a nursing home or outpatient clinic.

Refer to the diagram on page 264 in the Ozcan text (GOOGLE), and think through the steps of the supply chain of this item, from the manufacturer to the end user.

• Briefly describe the supply chain path of this item from its source to the end user. Indicate who is, or might be, involved in an efficient, cost-effective supply chain management of this item.
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• Describe other financial or clinical factors that should be considered in the management of this supply, such as just-in-time inventory, or the use of GPOs.
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• Briefly discuss operational challenges that are posed by physician preferences for this supply, if appropriate, or for other medical supplies. Propose one management strategy that could help address cost issues without jeopardizing quality or safety.

MUST BE 250-350 WORDS IN LEMGTH, BEFORE RESOURCES

ADDITIONAL RESOURCES:

• Readings
• Course Text: Health Care Operations Management

• Chapter 10, "Supply Chain Management Strategy"
  
  This reading describes components in health care supply chains and strategies for increasing their efficiency.
• Chapter 11, " Purchasing and Materials Management"
  
  This chapter explains management strategies for purchasing and discusses optimal layout and design of health care facilities.
• Course Text: Quantitative Methods in Health Care Management

• "Chapter 11, "Supply Chain and Inventory Management"
  
  Although it overlaps to some extent with the Langabeer chapters, this chapter goes into greater detail on just-in-time vs. other methods of inventory management and on the application of the economic order quantity (EOQ) model.
• Article: Anonymous. (2008). Slaying the budget-killers: New strategies emerge for physician preference products. Hospital Materials Management, 33(11), 1–3. Retrieved from http://proquest.umi.com/pqdweb?did=1592142291&Fmt=3&clientId=70192&RQT=309&VName=PQD
• Article: Barlow, R. D. (2010). Kept in the dark. Healthcare Purchasing News, 34(2), 48–49. Retrieved from http://ezp.waldenulibrary.org/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=47884515&site=ehost-live&scope=site
• Week 6 Team Application:
  Balanced Scorecard for West Central Hospital

Websites

The principles of effective scorecard metrics are discussed at these websites. Consider these as you begin the Team Application on balanced scorecards this week.

• J.L. Reinertsen (2007, June 11) "Boards, Dashboards and Data" [Powerpoints slides].
  Used by permission of the Institute for Healthcare Improvement, www.ihi.org .
  Review the PowerPoint® presentation, "Boards, Dashboards, and Data," which you read in Week 1.
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• Balanced Scorecard Institute: What Is the Balanced Scorecard?
  http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx

Optional Resources

• Course Text: Health Care Operations Management

• Chapter 12, "Inventory Management and Acccounting"
• Website: AHRMM: Association for Healthcare Resource & Materials Management
  http://www.ahrmm.org/
• Website: Joint Commission: Standards
  http://www.jointcommission.org/standards_information/standards.aspx
  
  Although the complete Joint Commission accreditation standards must be purchased in book or electronic format, this website provides background information about the standards for various health care settings.