Just in Time

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CAN A JUST-IN-TIME INVENTORY SYSTEM HELP REDUCE COSTS AND INCREASE PRODUCTIVITY IN HOSPITALS?

Yitteck Angel Kua-Walker
B.A., The University of Hong Kong, 2001
M.M.ED., The University of Georgia, 2003

PROJECT

Submitted in partial satisfaction of
the requirements for the degree of

MASTER OF SCIENCE

in

ACCOUNTANCY

at

CALIFORNIA STATE UNIVERSITY, SACRAMENTO

SUMMER
2010

CAN A JUST-IN-TIME INVENTORY SYSTEM HELP REDUCE COSTS AND INCREASE PRODUCTIVITY IN HOSPITALS?

A Project

by

Yitteck Angel Kua-Walker

Approved by:

__________________________________, Committee Chair
James Mackey, Ph.D.

____________________________
Date

Student: Yitteck Angel Kua-Walker
 

 
I certify that this student has met the requirements for format contained in the University format manual, and that this Project is suitable for shelving in the Library and credit is to be awarded for the Project.  

 
 
 
 

_____________________________________________ _____________________ Monica Lam, Ph.D. Date
Associate Dean for Graduate and External Programs
    
College of Business Administration 

Abstract

of

CAN A JUST-IN-TIME INVENTORY SYSTEM HELP REDUCE COSTS AND INCREASE PRODUCTIVITY IN HOSPITALS?

by

Yitteck Angel Kua-Walker

With the recent public focus on health care reform, hospitals are under more pressure than ever to be more cost efficient. In order to accomplish this, hospitals must explore new business models that will help them reduce costs, while at the same time increasing productivity. The just-in-time (JIT) inventory system is selected in this project as a potential cost-saving strategy for hospitals. This project explores the feasibility of adopting a JIT inventory system in a hospital setting, through a detailed review and comparison of 20 articles.

_______________________, Committee Chair
James Mackey, Ph.D.

_______________________
Date

TABLE OF CONTENTS
Page
Chapter
1. LITERATURE REVIEW 1
2. LIST OF RELEVANT ARTICLES 8
3. 20 ARTICLE SUMMARIES 12
4. ARTICLE COMPARISON 51
5. FINDINGS AND CONCLUSIONS 54
References 61

Chapter 1
LITERATURE REVIEW
In order to meet the demands of President Obama’s health care reform, hospitals need to operate more efficiently and find ways to reduce costs. Hospitals generally strive for quality health care delivery operations, not administrative efficiency (Jones, 2009). Evidence of this inefficiency can be easily observed in their management of inventory. Hospitals spend large amounts of money on supplies. In fact, some spend approximately $83 billion per year on supplies alone (Scanlin, 1997). Large percentages of this spending goes to very basic...
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