– Purchase – Storage – Supply / allocation Three areas where transaction of materials can be monitored and are process-oriented are An effective and efficient approach for material management reduces material costs and expenditure. ![]() ![]() As we always put emphasis on cost containment, the obvious area to which attention should be drawn is hospital stores inventory management. In small and medium-sized hospitals this expenditure is towards the higher side because of the absence of other costs and this forms the major share of costs apart from employee salaries. Hospital Inventory management – The cost incurred for running stores and expenditure forms 35 to 40 percent in a hospital.
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