IAHCSMM Inventory Management & Distribution 2 — Questions and Answers
Question 1: What is the term for the total cost associated with placing and receiving an order in an inventory system?
- Holding cost
- Carrying cost
- Ordering cost (Correct answer)
- Opportunity cost
Correct answer: Ordering cost
Ordering cost includes all expenses incurred when placing and processing a purchase order, such as administrative time, shipping, and receiving labor.
Question 2: In a sterile storage area, what is the recommended minimum distance that sterile packages should be stored from the floor?
- 4 inches
- 8 inches (Correct answer)
- 12 inches
- 18 inches
Correct 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.
Question 3: Which type of inventory count involves counting all inventory items at one time, typically once or twice a year?
- Cycle counting
- Perpetual inventory count
- Physical inventory count (Correct answer)
- ABC analysis count
Correct 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.
Question 4: What does 'ABC analysis' classify in inventory management?
- Items by alphabetical order for filing
- Items by usage value to prioritize management attention (Correct answer)
- Items by sterilization method (autoclave, gas, chemical)
- Items by physical size (A=large, B=medium, C=small)
Correct 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.
Question 5: When a requisition system is used for supply distribution, what initiates the supply replenishment process?
- A computer-generated automatic reorder
- A formal written or electronic request submitted by the using department (Correct answer)
- An inventory count performed by CS staff
- A vendor notification of available product
Correct 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.
Question 6: What is the primary advantage of using a computerized inventory management system in central service?
- It eliminates the need for physical inventory counts
- It provides real-time tracking of supply levels and usage patterns (Correct answer)
- It automatically sterilizes instruments when stock is low
- It reduces the number of CS technicians required
Correct 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.
Question 7: Which of the following is a key responsibility of the CS department in the distribution process?
- Billing patients directly for supplies used during procedures
- Ensuring the right items are delivered to the right location at the right time (Correct answer)
- Negotiating vendor contracts for supply pricing
- Disposing of expired supplies in regular trash
Correct 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.
What is the term for the total cost associated with placing and receiving an order in an inventory system?