Competency
Analyze decisions that impact the healthcare delivery system.
Instructions
The Gotham City Hospital, a mid-sized hospital, has hired you as an expert consultant for healthcare organizations. They have requested an executive summary, between 3-4 pages that explains to their management team (administrators and medical staff) the difference between FIFO and LIFO delivery systems. The summary needs to cover both the risks and benefits the two delivery systems could have in the procurement and use of medical resources at the hospital.
Write an executive summary of at least 3 pages comparing and contrasting the use of FIFO and LIFO supply chains in a healthcare setting.
Make sure that the Executive Summary includes the following;
- Address the benefits and risks of using a FIFO delivery system in a healthcare setting.
- Address the benefits and risks of using a LIFO delivery system in a healthcare setting.
- Make a recommendation based on your research and back it up with evidence.
NOTE – APA formatting in the reference list and proper grammar, punctuation, and form are required. APA help is available from this link – APA.
Expert Solution Preview
Introduction:
This executive summary will analyze the differences between First-In-First-Out (FIFO) and Last-In-First-Out (LIFO) delivery systems in a healthcare setting. The Gotham City Hospital has requested this summary to consider the risks and benefits of each system in the procurement and use of medical resources. This summary will address the benefits and risks of using FIFO and LIFO delivery systems in a healthcare setting, and make a recommendation based on research and evidence.
FIFO Delivery System:
A FIFO delivery system is a method of inventory management where the oldest products or materials are used or sold first. In a healthcare setting, this means that the oldest medical supplies and equipment are used first before newer ones. The benefits of using a FIFO delivery system in a healthcare setting include reducing the risk of expired medications and supplies, ensuring that medical equipment is tested regularly and in good condition, and increasing accountability for inventory. However, there are also risks associated with using a FIFO delivery system, such as the potential for obsolete medications and supplies to be used, resulting in increased costs and waste.
LIFO Delivery System:
A LIFO delivery system is the opposite of a FIFO system, where the newest products or materials are used or sold first. In a healthcare setting, this means that the newest medical supplies and equipment are used first before older ones. The benefits of using a LIFO delivery system include reducing the risk of obsolete medications and supplies being used, ensuring the availability of new and more effective medications and technologies, and providing flexibility in inventory management. However, there are also risks associated with using a LIFO delivery system, such as the potential for older medications and supplies to expire unused and be wasted, resulting in increased costs and decreased accountability for inventory.
Recommendation:
Based on the analysis presented above, it is recommended that the Gotham City Hospital adopt a FIFO delivery system in their procurement and use of medical resources. This system will reduce the risk of expired medications and supplies being used, ensure that medical equipment is regularly tested and in good condition, and increase accountability for inventory. While there are risks associated with a FIFO delivery system, proper management and inventory control can mitigate these risks.
