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Glossary


Example from Kenya

"Min/Max" Inventory Control System

In order to ensure that adequate supplies of unexpired contraceptives are continuously available to Service Delivery Points (SDPs) throughout Kenya, the Division of Family Health (DFH) of the Ministry of Health is testing a new system for distributing and managing contraceptives. This new system is presented in the Ministry's Logistics Management Information System Instructions for Recording and Reporting. The principal features of this new system are:

Stock at all levels of the system (central, depot, district, and service delivery point) will be managed through a Minimum/Maximum ("Min/Max") inventory control system. In this system, stock levels of each item are reviewed each quarter, and when stock levels fall to the established minimum, enough supplies are ordered or allocated to bring the total stock level up to the established maximum.

Min/Max levels are expressed as number of months' supply on hand, calculated from the average consumption/distribution over the previous six months for each item and each facility. The initial Min/Max levels will be:

Central Stores/Depot6-12 months' supply
District Stores3-6 months' supply
Service Delivery Points2-5 months' supply
Total11-23 months' supply

The total in-country stock will thus range from a minimum of 11 months' supply to a maximum of 23 months' supply. These Min/Max levels allow for adequate safety stocks at each level of the service system.

The new system will introduce some changes but will build upon the existing system. Resupply of the district stores by the Medical Supplies Coordinating Unit and sub-depots will be accomplished through a "requisition" system, as is currently the case. District staff will continue to be responsible for estimating their contraceptive needs and will continue to order stock from the Medical Supplies Coordinating Unit and sub-depots using an issue and receipt voucher. This is exactly the same as the current distribution procedure for the central and district levels. The only difference (and major advantage) is that the resupply period will be quarterly, rather then continuing the current ad hoc resupply system. A quarterly supply schedule will be developed. More frequent resupply will be allowed in emergency stockout situations, which might arise due to unexpected demand.

For resupply of the service delivery points, a "replenishment" system will be routinely used, in which district supervisory staff will visit each service delivery point on a fixed schedule each quarter for purposes of supervision and restocking. At these quarterly visits, district personnel will "top up" each service delivery point's stock to the established maximum level, remove any stock near expiration, and ensure that service delivery point personnel complete the required daily registers and quarterly reports.

Commodities Management/Logistics System from the Kenya Ministry of Health

Commodities Management Flowchart

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