Dirk-Andre Clevert MD, Presenter: Nothing to Disclose

Ernst Michael Jung MD, Abstract Co-Author: Nothing to Disclose

Maximilian Reiser PhD, Abstract Co-Author: Nothing to Disclose

Nikolaus Rupp, Abstract Co-Author: Nothing to Disclose

A cost analysis was performed to assess options of reorganizing material supplies and reducing radiology division costs through the introduction of a materials management system.

A materials management system (Piranha, Boston Scientific) was installed on an existing computer system. All consumables where inventoried and entered into the system. An ABC analysis determined further action. On the basis of order frequencies and availability requirements for emergencies, safety levels were agreed with physicians and other medical staff. Inventory costs were computed using these data. The interest rate for these calculations was 8% per year.

The inventory showed that the capital tied up in stocks was 260,000 $ in 2001 and 190,000 $ in 2002. A change in supply strategy reduced inventory cost in 2001 and 2002. Annual interest expense was lowered by 18,420 $. Another saving of 2,700 $ was achieved by a reduction in storage cost. Annual inventory turnover totaled 298,000 $. The total cost cut through improved inventory management was 21,120 $ per year equivalent to 7% of annual expenses. Adding the decline in the cost of shelf time overruns equal to 5% of annual expenses, the saving was approximately 12% of total interventional radiology cost in 2001 and some 11% in 2002.

Flexible supply strategies and the introduction of a materials management program can help to reduce inventory costs in interventional radiology divisions without any impact on service levels.

Clevert, D, Jung, E, Reiser, M, Rupp, N, Optimizing Material Management and Work Flow in Interventional Radiology Departments through the Introduction of a Materials Management System.  Radiological Society of North America 2004 Scientific Assembly and Annual Meeting, November 28 - December 3, 2004 ,Chicago IL. http://archive.rsna.org/2004/4411603.html