Inventory Control Flashcards

Which inventory management method prioritizes dispensing the oldest stock first to minimize product expiration?

Answer: FIFO (First In, First Out)

FIFO ensures that older items with earlier expiration dates are used before newer stock, reducing waste.

What is a 'par level' in central service inventory management?

Answer: The minimum quantity that triggers an order and the target replenishment quantity

Par level defines the minimum stock threshold that triggers reordering and the quantity needed to return to optimal levels.

When conducting a physical inventory count, which action ensures accuracy?

Answer: Halting all movement of items in the area being counted

Stopping item movement during a physical count prevents discrepancies caused by items being added or removed mid-count.

Which term describes the cost incurred when a supply item is unavailable and a procedure must be delayed or substituted?

Answer: Stockout cost

Stockout cost refers to the operational and financial impact when a needed item is out of stock.

A CS technician notices that several instrument sets consistently return with unused items. What is the BEST inventory-related response?

Answer: Analyze usage data and consider reducing set content

Reviewing usage data and rightsizing set contents reduces unnecessary sterilization costs and instrument wear.

What does 'economic order quantity' (EOQ) help a central service department determine?

Answer: The optimal order quantity that minimizes total ordering and carrying costs

EOQ balances ordering frequency costs against storage and holding costs to find the most cost-effective order size.

Which of the following is considered a 'carrying cost' in inventory management?

Answer: Storage space, insurance, and spoilage expenses

Carrying costs include all expenses related to holding inventory such as storage, insurance, obsolescence, and spoilage.