CHL Inventory and Supply Management 4 — Questions and Answers
Question 1: A healthcare supply manager discovers that a high-cost implantable device was used in a surgery but never documented in the inventory system. This is an example of a failure in which process?
- Demand forecasting
- Point-of-use capture and charge capture (Correct answer)
- Vendor contract management
- Capital equipment depreciation
Correct answer: Point-of-use capture and charge capture
Point-of-use capture ensures that supply usage at the care delivery point is recorded for inventory tracking and accurate patient billing simultaneously.
Question 2: Which of the following BEST describes the 'economic order quantity' (EOQ) model?
- The quantity that minimizes total inventory costs by balancing ordering costs and holding costs (Correct answer)
- The maximum quantity allowed by a GPO contract in a single purchase
- The quantity required to qualify for a vendor volume discount
- The minimum reorder quantity set by the supplier
Correct answer: The quantity that minimizes total inventory costs by balancing ordering costs and holding costs
EOQ calculates the order size that minimizes the sum of ordering costs and inventory holding costs, resulting in the lowest total cost.
Question 3: A healthcare leader is reviewing vendor performance. Which combination of metrics provides the MOST comprehensive evaluation of a medical supply vendor?
- Unit price and sales representative responsiveness
- On-time delivery rate, fill rate, defect rate, and pricing compliance (Correct answer)
- Annual contract value and number of product SKUs offered
- Payment terms and credit limit offered by the vendor
Correct answer: On-time delivery rate, fill rate, defect rate, and pricing compliance
A comprehensive vendor scorecard includes delivery reliability, fill rate, quality metrics, and pricing compliance to assess all dimensions of supplier performance.
Question 4: In supply chain risk management, 'single-source dependency' refers to:
- Relying on one internal department to manage all purchasing decisions
- Using only one supplier for a critical supply item, increasing vulnerability to disruption (Correct answer)
- Purchasing all supplies through one GPO contract
- Storing all inventory in a single central warehouse location
Correct answer: Using only one supplier for a critical supply item, increasing vulnerability to disruption
Single-source dependency means having only one supplier for a critical item, which creates significant risk if that supplier faces disruption, bankruptcy, or quality issues.
Question 5: What is the primary advantage of implementing Radio Frequency Identification (RFID) technology in hospital supply management?
- It eliminates the need for supplier contracts
- It enables real-time, automated tracking of supply location and inventory levels (Correct answer)
- It reduces the purchase price negotiated with vendors
- It replaces the need for a materials management information system
Correct answer: It enables real-time, automated tracking of supply location and inventory levels
RFID tags allow automated, real-time tracking of supplies throughout the facility without manual scanning, improving inventory accuracy and reducing shrinkage.
Question 6: A hospital is transitioning from a traditional 'push' supply replenishment model to a 'pull' model. What is the key operational difference?
- Push models are used for non-clinical supplies only, while pull models are for clinical supplies
- In a push model, supply is sent based on forecasts; in a pull model, replenishment is triggered by actual consumption (Correct answer)
- Pull models require larger safety stock than push models
- Push models are driven by point-of-use data, while pull models rely on weekly orders
Correct answer: In a push model, supply is sent based on forecasts; in a pull model, replenishment is triggered by actual consumption
Push systems distribute supply based on predicted demand forecasts, while pull systems replenish only in response to actual consumption signals.
Question 7: When conducting a periodic inventory count versus a perpetual inventory system, what is the main operational distinction?
- Periodic systems update inventory records continuously; perpetual systems count on a schedule
- Perpetual systems update records with each transaction; periodic systems reconcile on a set schedule (Correct answer)
- Periodic systems are only used for high-value implantables
- Perpetual systems require a physical count every 30 days
Correct answer: Perpetual systems update records with each transaction; periodic systems reconcile on a set schedule
A perpetual system updates inventory in real time with every transaction, while a periodic system reconciles actual stock to records at scheduled intervals.
CHL Inventory and Supply Management 4
A healthcare supply manager discovers that a high-cost implantable device was used in a surgery but never documented in the inventory system.
This is an example of a failure in which process?