Inventory Management & Distribution Flashcards

What is the term for the total cost associated with placing and receiving an order in an inventory system?

Answer: Ordering cost

Ordering cost includes all expenses incurred when placing and processing a purchase order, such as administrative time, shipping, and receiving labor.

In a sterile storage area, what is the recommended minimum distance that sterile packages should be stored from the floor?

Answer: 8 inches

AAMI and AORN guidelines recommend that sterile items be stored at least 8 to 10 inches off the floor to protect from contamination and moisture.

Which type of inventory count involves counting all inventory items at one time, typically once or twice a year?

Answer: Physical inventory count

A physical inventory count (also called a wall-to-wall count) is a complete count of all items performed at one time, usually annually or semi-annually.

What does 'ABC analysis' classify in inventory management?

Answer: Items by usage value to prioritize management attention

ABC analysis categorizes inventory by annual usage value: 'A' items are high-value/high-impact requiring tight control, while 'C' items are low-value requiring less oversight.

When a requisition system is used for supply distribution, what initiates the supply replenishment process?

Answer: A formal written or electronic request submitted by the using department

In a requisition system, the using department submits a formal request (requisition) to CS whenever supplies are needed, rather than automatic replenishment.

What is the primary advantage of using a computerized inventory management system in central service?

Answer: It provides real-time tracking of supply levels and usage patterns

Computerized systems offer real-time visibility into supply quantities, consumption trends, and reorder needs, improving accuracy and reducing both stockouts and overstock.

Which of the following is a key responsibility of the CS department in the distribution process?

Answer: Ensuring the right items are delivered to the right location at the right time

CS distribution responsibilities center on accuracy and timeliness — confirming the correct items, quantities, and sterility status reach the right department when needed.