A regional hospital uses a reorder-point system for standard consumables. After opening a new outpatient unit, shortages increased for some high-use items. Stores staff argue that the reorder-point system is failing. However, the investigation shows that physical stock agrees with the system records, items are stored in the correct locations, and replenishment requests are being generated when the recorded balance reaches the set reorder level. The problem is that the set reorder levels were based on old usage patterns and supplier lead times. Management wants to keep automated replenishment, but prevent the same shortage pattern from continuing. Which action should procurement and stores management take first?

Question

Answer

Introduce stock checks for the affected items, because the shortages indicate that physical quantities and system balances are no longer aligned.

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Recalculate the reorder points and order quantities for the affected items using current usage and lead-time information, while keeping the reorder-point system in place.

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Use customer-order and forecast triggers instead of reorder points, because the new outpatient unit has changed the demand profile for consumables.

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Replace the reorder-point system with travelling requisitions, because ward staff are closer to the point of use and can trigger replenishment more accurately.

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A regional hospital uses a reorder-point system for standard consumables. After ...

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