The answer lies in identifying ahead of time those items that are strategic in providing healthcare, and managing those items differently. A surge will defeat any inventory plan that is based on continued normal times, whether it is JIT or not. Sometimes surges occur that outstrip the ability of the supply network to quickly respond. Thus, the wide adoption of JIT in healthcare facilities.īut what about when life isn’t normal-when there is a surge in demand? Sometimes in operations with excess inventory, the needed item cannot be located in the sea of excess. Most managers have learned that excess inventory results in waste, as items are lost, damaged, or expire. When life is normal, JIT systems work pretty well-much better than the alternatives in most cases. Of course, even a small health care facility stocks hundreds of items each has its own calculated order quality and signal to reorder. For each item, a quantity is determined that will prevent stockouts during the time between orders (including lead time) and allowing for variation in demand. Just-in-Time (JIT) inventory is a system of replenishing inventory when a signal indicates that more is needed to meet customer demand. There is plenty of blame to go around but one of the suspects often cited as a possible causal factor is Just-in-Time inventory practices (for example, this Wall Street Journal article). Many failure modes have been attributed to the awful mess that has occurred across the US in supplying frontline healthcare workers and other first responders with sufficient protective equipment (PPE).
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