STOCKS WITH YOU, BUT WITH AN OH: A TALK ABOUT SAFETY STOCKS POLICY
Thursday, June 2, 2016, 10:45 AM – 11:15 AM
Marianne Leila S. Flores
Department of Veterinary Clinical Sciences, College of Veterinary Medicine, University of the Philippines Los Baños, College, Laguna, Philippines
Stocks are also known as “inventory”, which is, in a veterinary setting, the complete listing of pharmaceuticals, goods and supplies on hand used to carry out a service. In order not to lose sales opportunities nor have unnecessary carrying costs, a systematic and scientific way of classifying, monitoring, controlling and over-all managing the stocks must be observed. In a day-to-day hassle and bustle in a busy vet practice, there are ways to keep the stocks in order and under control. However, stock outs may occur thus there is a need for a safety stocks policy to minimize the expected total cost of stock-outs and of carrying cost. To determine the safety stock level, these data are needed: probability of demand during lead time and cost of a stock out which includes cost of a lost sale and future lost sales. However, these stock out costs are difficult to determine, thus there is a need to make assumptions.