white paper on par level planning ver 2.0

A C a s e S t u d y o f R e p l e n i s h m e n t p l a n n i n g i n H e a l t h C a r e 1

PAR Level Planning using Oracle Inventory

Health Care Domain Perspective

A white paper on implmenting Periodic Automatic

Replenishment using Oracle Inventory

Abhishek Mishra

August, 2015



Copyright © 2015

All rights reserved. No part of this publication may be reproduced, stored

in a retrieval system, or transmitted, in any form or by any means,

electronic, mechanical, photocopying, recording, or otherwise, without

the prior permission of the copyright owners.



Table of Contents

Executive Summary 4

Health Care Industry and Generic Requirements 5

Movement of material in Hospital ....................................................... 6

Periodic Automatic Replenishment ..................................................... 7

Setups and Business Flow for PAR planning 8

Modeling PAR level planning in Oracle Inventory ................................. 8

Setting up Sub Inventories ................................................................ 9

Setting up Item Sub Inventory Association and PAR levels ................. 11

The Business Process ...................................................................... 13

Performing Automatic Replenishment 14

Automatic replenishment Procedure ................................................. 14

Generating Replenishment worksheet............................................... 17

Processing Replenishment Move Order ............................................. 19

Using External Interface for performing the count 21

Applying Actual Usage of Inventory 22

The Solution Design ........................................................................ 22

The Process of Replenishment and Consumption .............................. 23

Alternate Point of view .................................................................... 24

Returning Material back to Supply Echelon Error! Bookmark not

defined.

About the Author 26



In a Consumption driven supply chain like a hospital,

usually the point of care does not have perpetual On-

Hand Inventory Balance. Yet, being a key link in demand

cycle it needs to plan its items to maintain continuity of

service at the point of care. Replenishment planning

method is ideal for such free stock items which are

stored and consumed at regular intervals. In this white

paper we present a case to establish the usage of

Replenishment count planning for a Hospital Supply

Chain.

Executive Summary

This white paper aims to present a viable solution for consumption

driven supply chains in particular Hospital Supply chain where a

department which does not maintain a perpetual inventory, but by

performing counts and subsequent periodic automatic replenishment

maintains a continuous supply of items for continuity of Services. Main

Stream research in health care insists on applying the practice of actual

usage of inventory for better cost visibility and realistic Inventory

valuations. In oracle both the options of applying actual usage and

planning based on perpetual inventory at point of care can be designed as

a part of replenishment planning.

The case study presented in this document is of a first specialized

Orthopaedic and Sports Medicine Hospital in the Gulf region. We take

both the perspectives of Applying Actual usage of Inventory and Periodic

Inventory planning methods and aim to highlight the difference in the

solutions using Standard features in Oracle Inventory Release 12.



Health Care Industry and Generic Requirements

In mainstream research it is cited that the supply costs in a Hospital for

clinical items and their handling is on an average 25 to 30% of the

operating budget of the Hospital. (Vijith Varghese, 2012)

The hospital considered for this case is also a combination of both

single-echelon and multi-echelon supply chain. In sections like

Pharmacy and Main store the Vendor supplies the material directly; I

like to call it the Supply Echelon and other departments like dental and

nursing request material from these two sections for their operations,

let’s all the the o su ptio e helo for our u dersta di g.

It’s also worthy to note that all the legs in the multi-echelon are

equipped with cabinets and storage capacity and stock material for use

at the point of care. This makes the departments responsible for

maintaining the plan locally based on consumption and replenish at

regular intervals from the main store and pharmacy on periodic basis. In

this scenario, the departments also play a vital role for generating the

demand for upstream supply chain.

In standard implementation of Oracle Inventory, movement of material

is recorded by the transaction of move orders in most cases. From an

accounting perspective inventory items which are issued to a

department for consumption by the main store, remain to be an asset in

the books, until such time they are used at the point of care on the

patient. This makes each of the departments in the multi-echelon

holder of inventory. This also enforces the responsibility of performing

cycle and physical counting each year for keeping accurate on hand

balances at each of the departments. In most cases the supply chain

staff conducts the annual physical count however the presence of

material across several departments in the hospital makes this task

more difficult and cumbersome.

The generic requirement is to have a system configured to ensure each

department can easily replenish the required items on timely basis from

the Supply Echelon. The Supply e helo ’s a agi g the e dor interaction should have access to information on demand pattern of the

Consumption echelons. It’s important to realize revenue against the

planned capacity of the Consumption echelons within a period of time

due to perishable nature of items used in Health care supply chains.

Part of what you need to do

in the supply chain is to help

your company anticipate

events, and understand the

environment you operate in – physical, political,

economic – around the globe.

Fran Townsen (Former US

official in area of National

Security, CSCMP 2008)



Movement of material in Hospital

The understanding of movement of material in a hospital is a key to establish the

solution for the hospital supply chain. As depicted in Picture 1, the movement of

material can be established across two parts. First Part is the single Echelon supply

movement from Vendor to the Central Pharmacy and Main store “upply E helo ’s and

Second part from main store or central pharmacy to individual departments like

Anesthesia or Dental Co su ptio e helo ’s .

In this paper, we shall model each of the above echelons as a Sub Inventory in Oracle.

It’s also important to note that the Delivery location will be the Address of the Inventory

Organization (not depicted in the Picture 1) and precise contact person is the user in the

Supply echelon. The Supply echelons are responsible for planning of all the materials

being used in the Hospital and maintain/ track consumption patterns by each of the

Consumption echelons. At this point, we would also like to conclude that the planning

parameter for the lead-time of the same item for the Supply echelon is largely different

from that of the Consumption echelons, due to difference in supply sources. It is the

Supply echelons that are responsible for direct interaction with the material

management department for ordering, replenishment and re-stocking of near expiring

lots of the material in case of consignment inventory.

Vendor

Pharmacy Store

Nursing OT Dental

Athlete

Screening

OPD

Anesthesia

Rehab

Medical

Imaging

Lab

Single

Echelon SC

Multi

Echelon SC

Picture 1: Movement of Material in the Hospital



It’s also important to note that in event of returns, the movement of material happens

from the Consumption echelons back to the supply echelons. This also is the Achilles

heel for the solution using the replenishment planning in Oracle inventory as the

replenishment planning creates the move order issue transaction and not move order

transfer in case the receiving Sub Inventory is of type Expense. This will be discussed in

detail in latter sections of this paper.

Periodic Automatic Replenishment

Periodic automatic replenishment consists of two important of variables at a very basic

level.

a) The PAR level

b) The period for automatic replenishment.

PAR level is the quantity of item that the department plans to have for a particular

period like a week or a day to ensure operational continuity at the point of care. This is

based on the past experience of average consumption of the item for the said period.

The period for automatic replenishment is the number of days after which the

department supply coordinator does a visual review or count of the items available and

orders for replenishment.

Typically the past history data plays vital role in establishing the exact PAR level for the

item. The common formula for periodic replenishment is

PAR (n) = i × � || where, i= Quantity of item, n= number of days

For example if the total consumption of wound sutures in the outpatient department

per day (n) is 10 (i). The PAR level for a week (period) for wound sutures will be

PAR (7) = 10 x 7 or 70 Stock keeping units.

The department in this case needs to identify all the items that are used by it along with

appropriate PAR levels for a specific period of time.

So, we also establish another critical factor, PAR level for an item is a function of time,

mathematically represented as PAR (n) = f (t).

PAR level planning is perpetual in nature, only the reduction of on-hand quantity by

consumption leads to replenishment of items based on the Replenishment count

quantity or the PAR levels identified for each item. In most cases, the user does a visual

inspection of the material and subsequently orders the replenishment.


Setups and Business Flow for PAR planning

Modeling PAR level planning in Oracle Inventory

In this section we will elaborate on the key setups in Oracle to model the above case. For sake of

simplicity we will take case of single movement between the Nursing Department and the Main-

Store.

Some Key Considerations for PAR level planning are below

• The Sub Inventory where PAR level planning needs to be enabled must be

a non-asset, non-quantity tracked sub inventory.

• It must have locators defined in it and optionally the capacity of locators

may be specified.

• Item Sub Inventory Association must be done and for each item, Locator

and PAR level must be specified.

• Source must be specified to an internal inventory organization or sub

inventory. In this case study, the source would be MIO-MS, the main

store.

Organization Oracle Definition

Main Inv. Org (MIO) Inventory Organization

Central Pharmacy Sub Inventory (Asset)

Main Store Sub Inventory (Asset)

Dental Expense Sub Inventory

Operating Theatre (OT) Expense Sub Inventory

Anesthesia Expense Sub Inventory

Out Patient Dept. (OPD) Expense Sub Inventory

Nursing Expense Sub Inventory

Athlete Screening Expense Sub Inventory

Rehab Expense Sub Inventory

Lab Expense Sub Inventory

Medical Imaging Expense Sub Inventory

In the Approach I, we take model the

inventory structure without applying

the actual usage of inventory. This

drives definition of each of the

departments in the Hospital

o su ptio e helo ’s as expense

Sub Inventories. The two Supply

echelons namely the Central Pharmacy

and Main-Store are defined as Asset

Sub inventories. In this model the

Inventory valuation of Main Inventory

Organization will reflect only value of

material stored in these two sub

Inventories.

This structure is suitable for extremely

specialized hospitals like the one in

our case of Sports medicine hospital.

Main Inventory Organization (MIO)

Main Store – MIO-MS Nursing – MIO-NRS EXP Asset

Table 1: Sub Inventory Definitions


Setting up Sub Inventories

Setup of Main Store (MIO-MS, type Asset)

(N) Setup > Organizations > Sub Inventories

Setup of Nursing Sub Inventory (MIO-NRS, type Expense)

Setup of Locators for Nursing Sub Inventory (MIO-NRS, type Expense)

Type: Storage as

its going to stock

material

Based on Material

Status Control –

Active is for

transact-able

locators

Parameters from

Material Status

Control – Quantity

Tracked and Asset

Sub Inventory

PA

R le

ve

l

pla

nn

ing

is

no

t en

ab

led

as th

is is the

So

urce

Su

b

Inv

en

tory

Source for the

Main-store is the vendor as it’s the Supply Echelon Picture 2: Setup of Asset Sub Inventory

Type: Storage as

its going to stock

material

Based on Material

Status Control –

Active is for

transact-able

locators

Inventory

Parameters –

Expense, Non Asset

and Non Quantity

Tracked

PA

R le

ve

l

pla

nn

ing

is

en

ab

led

at

the

Su

b-

Inv

en

tory

De

finitio

n

Source for this Sub

Inventory is the main-store as it’s the Consumption echelon Picture 3: Setup of Expense Sub Inventory



The PAR level planning method is locator based replenishment and the setup of

locators is mandatory at the Sub Inventory level.

(N) Setup > Organizations > Sub Inventories > (B) Locators

The locators can be specified with the Status of Expense as the Sub-Inventory is of

Expense type

Select Locator Names

by Clicking on

Locator. Optionally

specify the capacity.

Picture 4: Setup of Locators for Exp. Sub Inv

For the above

business case three

locators are specified

in Destination Sub

Inventory.

Picture 5: Setup of Locators for Exp. Sub Inv



Setting up Item Sub Inventory Association and PAR levels

The setup for Item Sub Inventory Association is a pre-requisite to specify PAR levels for

each locator for the item.

It is important to understand few important aspects related to this setup.

• Assigning items to a sub-inventory does not restrict the sub-inventory to that list of items.

Rather, the items are restricted to that sub-inventory. The receiver of the department can

continue to receive items which are not specified through this association. Item Sub-Inventory

asso iatio is ot a restri tio ; rather it’s a relatio . The sa e set of ite s a elo g to more than one sub Inventories. (Oracle Corp. Inventory User Guide R12, 2010)

• To restrict Items to a specifi “u I e tory, the Restri t “u -I e tories attri ute of the item must be checked at the item definition level.

• PAR Level is an attribute of Item - Sub-inventory – Locator combination. If multiple locators

are assigned to a sub Inventory and more so to an item-Sub-inventory setup, each locator can

be setup for a different PAR level of the item.

PAR level across two

locators for the same

item being set

Source Sub Inventory

Can be specified in

the Item-Sub Inv

association form

Picture 6: Setup of Item- Sub Inv association and PAR levels



For the Business case, we take example of various sutures used by nursing department along with the

PAR le el for o e eek’s PAR period.

The above data set is modeled in the Item Sub Inventory association form along with the PAR level for

the locators, depicted in Picture 6: Setup of Item- Sub Inv association and PAR levels

Item Description Source Type Organization Source Sub-

inventory

100801 STAPLER, SKIN 35W AUTO SUTURE Sub-inventory MIO MIO-MS

Locator Description PAR Level UOM

MIO-NRS-A-01.100.101 100 EA

100901 SUTURE PDS II 0 90CM AB 1/2 CIRCLE TAPER CUT

HEAVY 36MM Sub-inventory MIO MIO-MS


MIO-NRS-A-01.100.101 150 EA

100902 SUTURE PDS II 0 150CM AB 1/2 CIRCLE BLUNT

TAPER 50MM Sub-inventory MIO MIO-MS


MIO-NRS-A-01.100.102 200 EA

100903 SUTURE PDS II 1 90CM AB 1/2 CIRCLE TAPER CUT

HEAVY 36MM Sub-inventory MIO MIO-MS


MIO-NRS-A-01.100.103 200 EA

MIO-NRS-A-01.100.102 100 EA

100904 SUTURE PDS II 2-0 70CM AB 1/2 CIRCLE ROUND

BODY 31MM Sub-inventory MIO MIO-MS


MIO-NRS-A-01.100.102 400 EA

100905 SUTURE PDS II 2-0 70CM AB 1/2 CIRCLE ETHIGUARD

31MM Sub-inventory MIO MIO-MS


MIO-NRS-A-01.100.103 120 EA

Table 2: Data for the Setup of Item-Sub Inventory and PAR levels

On Hand Quantity of

all items is set at

1000 Units (1000

each)


The Business Process

In Oracle, PAR level planning is implemented by using Replenishment counting at sub

Inventory level. The end user performs a count of available On-Hand of all items

associated with the Sub-Inventory and selects appropriate Ordering method while

entering the counts in the replenishment count worksheet.

The key success factor for the implementation of Replenishment count is not in the

product but in the process, reflecting back on the formula, PAR (n) = i × n, we insist that

the discipline of performing the PAR level counting at the end of the nth period, results

in ensuring continuous availability of material at the point of care.

Failure to perform the PAR replenishment in the right period will result in stock outages

and subsequently inventory underage/overage at the main-store due to inconsistent

demand patterns. As the inventory is perpetual and the count entered by the end user

can be subjective based on visual assessment of material. It is recommended to avoid

this practice and perform a proper replenishment count at the end of PAR period. It’s

also worthy to note that Oracle has a built-in interface for entering the counts using a

mobile device. In case the Hospital has built in the bar code scanning for unit dose of

each item, a mobile device can be used to quickly scan and enter the replenishment

counts.

PAR planning is a three-step process.

Step I – The end user performs and enters the count in the Replenishment count

worksheet. Verify the Count Sheet Report in the Expense Inventory.

Step II – Processes the Replenishment count for generation of Move order Requests

(Replenishment Move Order), Verify the Replenishment Report.

Step III – The user in the Main Store (MIO-MS) transacts the move order and sends the

shipment of requested quantity to the End user.

Oracle does not have a built in mechanism to notify the Planner/ user in the main-store

when the Replenishment move order gets generated if move order approvals are not

set. This is a recommended extension for the Inventory implementation.

Store

Nursing

Nursing Perform Item Counts &

enter the Replenishment levels

Process the Replenishment Counts and

verify order report.

I

II

Store

Nursing Dispatch the material to Nursing

Department III


Performing Automatic Replenishment

Taking a deeper look into the Case Study presented in this paper, the non-tracked Sub

Inventory is MIO-NR“ a d “u I e tory ha i g the O -Hand Quantity is MIO-MS.

To determine the required replenishment quantities of Sutures the user in the Nursing

department need to periodically count (defined as weekly in this case) and request

material from the Main-Store. The system always creates a Pre-Approved

Replenishment move order as output of the counting process.

It can be deduced that there are three possibilities for entering the counts

• Order Quantity – Manually entered quantity for replenishment.

• Order PAR – Replenish the quantity mentioned as PAR quantity for the locator

• Order Deficit – Difference of quantity counted and PAR level quantity for the item.

(PAR Quantity – Counted Quantity)

It is to be noted that count quantity must be entered in the same UOM as the PAR

UOM.

Automatic replenishment Procedure

In the below procedure we would like to describe the manual counting process

(N) Inventory User Responsibility > Counting > Replenishment Counts > Counts

Picture 7: Defining the Replenishment Count

Click Default Items for

populating all Sub

Inventory Items.

Alternately, click lines

to select items

manually Picture 8: Entering the Replenishment Count

Click New to create a

new count (Case

Study Ref: Weekly

Periodic Count)



Name: Name of the count (Recommended to have a nomenclature for this like Aug-

Wk1, it supports upto 10 Characters Only, for sample entry we choose the name as

Week 1).

Its also important to note that there is no description of the count, so its important to

choose this name wisely for future searchability

Sub Inventory: The Sub Inventroy for which the count is being performed. This would be

the Expense Sub Inventory in our case MIO-NRS

Supply Cutoff Date: Enter the Supply Cutoff date. The replenishment count process

considers only purchase orders and internal requisitions with receipt dates earlier than

or equal to the supply cutoff date. (Oracle Corp. Inventory User Guide R12, 2010)

Count Date: This defaults to the current system date and is the reference for the date

on which count is being entered into the system.

Default Deliver To: This is the delivery location to be printed on the Replenishment

count worksheet, and the List of values lists the Locations available in the system.

Count Using Mobile: The checkbox count using mobile disables manual entry of count

information and will fetch the data from the Replenishment interface as described in

the above section (See: Using Bar Code Reader for counting)

Status: There are three Processing statuses of the Replenishment Count planning.

The Profile Option INV: Replenishment Count Requisition Approval does not have

any impact on the status of the Replenishment move order. The count always creates

Pre-approved move orders only.

Pending

The Counts are being

processed

On-Hold

The Counts are entered

but not processed

Completed

The Counts are processed

and sent for replenishment

Picture 9: Processing Statuses of Replenishment count

Count Type is very

important and needs

to be set correctly for

the appropriate

replenishment. Picture 10: Entering the Replenishment Count



Clicking on Default Items populates all the Locator Item combinations along with the

pre-specified PAR levels.

Locator: The Locator is the default Item locator of the Sub-Inventory Item being counted

for replenishment.

Item: Item is the Item code being counted, it’s important to note that the description is

shown below in the Item description field for each item in selection.

Count Type: The options available for selection in count type are

- Order PAR: The PAR level for the item-locator combination in the field will be

ordered for the default PAR UOM specified.

- Order Quantity: The entered Quantity of item in specified UOM will be placed on

replenishment move order line. This can exceed the PAR quantity and UOM can be

different from PAR UOM.

- Onhand Quantity: The count is entered into the quantity field and the System

places a replenishment request for the difference.

i.e., PAR Quantity (in PAR UOM) – Onhand Quantity (In count UOM)

Note: If hypothetically the Count Quantity exceeds the PAR quantity, the system

calculates the re-order quantity to be Zero

After saving the counts, close this form to navigate back to the header.



Generating Replenishment worksheet

Click (B) Report, this triggers the Co . Progra PAR Replenishment Count

Worksheet

Click (B) Process and Report

This triggers two Programs, Process Replenishment Counts a d the report is ge erated i the spa ed progra PAR Replenishment Count Worksheet . The status

of the ou t ha ges fro Pe di g to Co plete o su essful o pletio of the Process replenishment counts program.

Click report to

generate the Draft

Worksheet of the

Replenishment.

Picture 11: Generating PAR Count

Worksheet

Place holder to display

the Actual Replenishment

move order Quantity for

all the lines

Review the

Replenishment work

sheet generated for

the Count.

A Place holder is shown in the

replenishment worksheet to

display processed quantities to

be placed on Order Picture 12: PAR Count Worksheet

Observe the status is Hold



Click on Process and

Report to view the

final replenishment

lines with re-order

quantities.

Picture 13: Processing the Replenishment Count

The place holder is now

populated with the Actual re-

order quantities for each item

in the designated place in

replenishment worksheet. Picture 8: The Processed PAR Count worksheet



Processing Replenishment Move Order

The user in the main store (MIO-MS) needs to process the replenishment move orders

generated from the above counting and dispatch the material to the point of care (MIO-

NRS).

(N) Inventory User > Move Orders > Transact Move Orders

The Profile Option INV: Fill & Kill Move Order if set to yes, allows cancellation

of partially allocated replenishment move order lines. This can be updated at

the site level.

Search for type: Move Order

Replenishment to find all

unprocessed replenishment

requests.

Picture 14: Replenishment Move Order Allocate and transact the move

orders. Partial Fulfillment by

the Stores user can be done.

Lot and Serial Control details

must be specified in allocations

for items with such controls.

Picture 15: Allocating Replenishment Move Order



(N) Onhand, Availability > Onhand Quantity

Picture 16: Processing Replenishment Move Orders

If the Inventory Organization

supports negative balances,

processing of replenishment

move order can drive inventory

negative.

Picture 17: Onhand Quantity after Processing Replenishment order


Using External Interface for performing the count

Oracle provides an interface for uploading the count data generated using a Bar code

reader into the Replenishment interface and subsequently populate the counts.

The main tables for the Interface are

MTL_REPLENISH_HEADERS_INT

MTL_REPLENISH_LINES_INT

Information must be populated for the below columns for successful validation of data

by the interface program.

Once data is populated from the mobile reader into the interface tables, the programs

Validate replenishment interface and Process replenishment counts can be run to

insert it to the base tables

MTL_REPLENISH_HEADERS &

MTL_REPLENISH_LINES

MTL_REPLENISH_HEADERS_INT MTL_REPLENISH_LINES_INT

REPLENISHMENT_HEADER_ID LAST_UPDATE_DATE

REPLENISHMENT_COUNT_NAME LAST_UPDATED_BY

COUNT_DATE CREATION_DATE

LAST_UPDATE_DATE CREATED_BY

CREATION_DATE COUNT_TYPE_CODE

CREATED_BY

LAST_UPDATED_BY

SUBINVENTORY_CODE

PROCESS_STATUS (Must be set to 2)



Applying Actual Usage of Inventory

Knowing and tracking what is available on the shelf is critical in any consumption driven

supply chain. In Hospital supply chain due to obsolescence, pilferage, spoliation,

deterioration and breakage every year sunken costs occur. The two important aspects of

inventory management in a hospital are (Ozcan, 2009)

a) The service level, availability of right goods in required quantities to be available

at point of care

b) Minimization of ordering and carrying inventories

Drawing reference based on (Vijith Varghese, 2012), we establish a solution which can

be implemented using Oracle Replenishment planning to realize and report actual usage

of inventory at point of care.

The Solution Design

To design the solution we continue forward from our approach mentioned in the earlier

sections of Replenishment planning process.

Extending the model, we introduce another Sub Inventory for the nursing department,

the Nursi g Asset “u I e tory. It’s i porta t to note that the Nursing Asset Sub-

Inventory (MIO-NRS (A)) is an exact replica of the Nursing Sub-Inventory (MIO-NRS). It

has the same item-sub Inventory association, PAR levels and number of locators as its

expense counter-part.

At any given point in time, the actual available inventory in the Nursing station is truly

represented by the MIO-NRS (A) and the consumption is represented by MIO-NRS.

It is critical to establish a process for the consumption and replenishment separately in

this design. The consumption is established when movement of material happens from

Main Inventory Organization (MIO)

Main Store – MIO-MS

Nursing – MIO-NRS EXP

Asset Nursing – MIO-NRS (A) Asset



Asset Sub-Inventory to Expense and replenishment happens when movement of

material happens from the Main Store (Supply Echelon) to the Nursing Asset sub

Inventory (Again a supply echelon). A better understanding can be arrived at by looking

the below example.

Source Definition in MIO-NRS (A)

Source Definition in MIO-NRS

The Process of Replenishment and Consumption

To establish the process, now we split the transactions into two phases

Phase I – Replenishment of material from Main Store (Supply Echelon) to the Nursing

Asset Sub Inventory on a weekly time period

Phase II – Consumption of material in the Expense Sub Inventory on a detailed basis.


inventory

100801 STAPLER, SKIN 35W AUTO SUTURE Sub-inventory MIO MIO-MS


MIO-NRS-A-01.100.101 100 EA


inventory

100801 STAPLER, SKIN 35W AUTO SUTURE Sub-inventory MIO MIO-NRS (A)


MIO-NRS-E-01.100.101 100 EA

Store

MIO NRS

(A)

Weekly Item Counts & enter the

Replenishment levels

Process the Replenishment Counts and

verify order report.

Store

MIO NRS

(A) Weekly Dispatch the material to Nursing

Department



The design assumes usage of a mobile device to perform the count and on a

daily basis, populate the replenishment count interface. The process is simple,

count before consumption daily, count before replenishment weekly.

In absence of the mobile device, the staff at point of care would have to enter

the daily count in the form and save it before issuing the material. This is

relatively easier than entering a move order issue transaction as it reduces data

entry effort only to selection of item and entering of the quantity being issued.

This establishes the MIO-NRS (A) as the Shelf inventory holder and at any given

point in time a report can be run to track the Onhand quantities in the Nursing

Department.

This process also enables in creating a consistent demand pattern and

smoothing out the temporal demands and variances at the point of care.

Alternate Point of view

The same functionality and results may also be achieved by eliminating the Expense sub-

Inventory definition and using the mobile device to directly create a move order issue

from MIO-NRS (A) each time the material is issued at point of care. Although this sounds

like a better solution, this requires technical development effort and a compulsion to

have the mobile device to capture the outgoing material.

MIO NRS

(A) MIO NRS

The Scheduled Validate and Process counts

program depletes the Asset sub Inventory

with Daily consumption

Using Mobile Device the Nurse Scans the

item prior to usage at point of care


References

Oracle Corp (2010). Inventory User Guide R12. Oracle Press.

Ozcan, Y. A. (2009). Quantitative Methods in Health Care Management Techniques and

Applications.

Pohl, E. R. (2012). Healthcare vs. Retail Gap. Fayetteville: Center for Innovation in

Healthcare Logistics, University of Arkansas.

Vijith Varghese, M. R. (2012). Applying Actual Usage Inventory Management Best

Practice in a Health Care Supply Chain. Int. J Sup. Chain. Mgt.



About the Author

Abhishek Mishra is a Senior Oracle Supply Chain Management

Consultant. He has participated in several turn-key engagements for

customers around the globe and is known widely for his skills of

applying latest theories and research in Oracle Applications System.

He has worked in CPG, Education, Manufacturing, Mass Media & Sports

Management Businesses across implementations, upgrade and support

projects, and is known as a versatile consultant in Oracle space.

He can be reached at [email protected] and 974-66484328.

Alternately you can establish contact on below Social platforms

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white paper on par level planning ver 2.0

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