7.3 Inventory and Supply Management
Key Takeaways
Inventory management ensures that medical and administrative supplies are available when needed without overstocking or waste
The par level system sets minimum and maximum quantities for each supply item — reorder when inventory reaches the minimum (reorder point)
Supply orders should be verified upon delivery: check quantities, items, expiration dates, and condition against the packing slip and purchase order
Administrative supplies include paper, toner, forms, envelopes, and office supplies; clinical supplies include exam gloves, gowns, needles, and medications
Expired supplies must be removed from inventory immediately and disposed of properly
Supply costs should be tracked and monitored as part of the office budget, with periodic inventory audits
Effective inventory management ensures the medical office operates smoothly without running out of essential supplies or wasting resources on overstocking.
Types of Medical Office Supplies
Administrative Supplies
| Category | Examples |
|---|---|
| Paper products | Printer paper, receipt paper, appointment cards, letterhead, envelopes |
| Forms | Registration forms, consent forms, superbills, HIPAA acknowledgments |
| Office supplies | Pens, pencils, staplers, tape, folders, filing labels, sticky notes |
| Toner/ink | Printer and copier cartridges |
| Technology | Computer peripherals, USB drives, batteries |
Clinical Supplies (CMAA Awareness)
| Category | Examples |
|---|---|
| Exam room supplies | Exam table paper, gowns, drapes, pillows |
| Disposable supplies | Gloves, masks, alcohol swabs, cotton balls, bandages |
| Testing supplies | Specimen containers, pregnancy tests, strep tests |
| Sharps | Needles, syringes, lancets, sharps containers |
The Par Level System
The par level system sets minimum and maximum quantities for each supply item:
| Term | Definition | Example |
|---|---|---|
| Par level (minimum) | The minimum quantity that should be on hand at all times | 5 boxes of copy paper |
| Maximum level | The maximum quantity to avoid overstocking | 15 boxes of copy paper |
| Reorder point | The inventory level at which a new order should be placed (usually equals the par level) | When stock reaches 5 boxes, order more |
| Reorder quantity | The amount to order to bring inventory back to the maximum level | Order 10 boxes to bring total back to 15 |
Factors That Affect Par Levels
| Factor | Impact |
|---|---|
| Usage rate | How quickly the item is consumed |
| Lead time | How long it takes for an order to arrive |
| Storage space | Available space for inventory |
| Expiration dates | Perishable items need lower par levels |
| Budget | Available funds for supply purchases |
| Seasonal demand | Flu season may increase demand for certain supplies |
Receiving and Verifying Deliveries
When a supply delivery arrives, the CMAA should:
| Step | Action |
|---|---|
| 1 | Check the delivery against the packing slip — Verify every item listed was received |
| 2 | Compare to the purchase order — Ensure the delivery matches what was ordered |
| 3 | Inspect condition — Check for damage, opened packages, or signs of tampering |
| 4 | Verify quantities — Count items to confirm correct quantities |
| 5 | Check expiration dates — Reject items with short or expired dates |
| 6 | Sign for the delivery — Only after verification is complete |
| 7 | Report discrepancies — Contact the supplier immediately for missing, damaged, or incorrect items |
| 8 | Store properly — Put items in the correct location using FIFO rotation |
FIFO (First In, First Out)
The FIFO method ensures older supplies are used before newer ones:
- Place new items behind existing items on shelves
- Use the items with the earliest expiration date first
- Rotate stock whenever new deliveries are received
- This prevents waste from expired supplies
Inventory Management Best Practices
| Practice | Benefit |
|---|---|
| Designate one person as the supply manager | Accountability and consistency |
| Conduct monthly inventory audits | Identify discrepancies, theft, or waste |
| Use an inventory tracking system | Spreadsheet, software, or barcoding system for accurate tracking |
| Standardize products | Fewer product variations reduce confusion and simplify ordering |
| Negotiate contracts | Bulk purchasing agreements can reduce costs |
| Track usage patterns | Adjust par levels based on actual consumption |
| Budget for supplies | Include supply costs in the monthly/annual budget |
| Remove expired items immediately | Prevents use of expired products; maintain a log of disposed items |
In the par level inventory system, when should supplies be reordered?
When the supply completely runs out
When the inventory reaches the minimum (par) level
At the beginning of each month regardless of quantity
When the supply reaches the maximum level
The FIFO (First In, First Out) method for supply management means:
The first person to request a supply gets it first
The most recently received supplies should be used first
Older supplies should be used before newer supplies to prevent expiration
Supplies should be ordered from the first vendor contacted
A supply delivery arrives. The packing slip shows 10 boxes of exam gloves, but only 8 boxes are in the delivery. What should the CMAA do?
Sign for the delivery and adjust the inventory to show 8 boxes received
Refuse the entire delivery and send it back
Note the discrepancy on the packing slip, sign with a notation, and contact the supplier about the missing items
Order 2 additional boxes from a different supplier to make up the difference
Sections you finish are checked off in the contents.