Faced with a resource crunch, the management of a hospital embarked on a cost-cutting strategy.

programme. Various clinical, supportive, and utility services were given instructions to identify the

areas where cost-cutting measures could be implemented effectively without jeopardizing the

facilities for patient care

The hospital’s purchasing system was both centralized and decentralized. The commanding officer

Dr. Systematic was a qualified and trained member of the hospital’s Emergency Department.

Administrator of a hospital He began systematically analyzing the various activities and procedures.

In the Emergency Department, it’s all the rage.

Dr. Systematic discovered that, in addition to the glass syringes, the Emergency Department

Every year, 9000 disposable syringes are purchased. The ordering interval was 30 days. The price of

The cost of each disposable was Rs. 20/-. The ordering cost was Rs. 15/- per order, and the carrying cost was Rs.

15% of the average inventory per year He determined the Economic Order Quantity and lot size of

Inventory per month, storage cost, and other inventory-related costs were calculated, and the optimal interval was determined.

in terms of ordering He forwarded these findings, as well as the organization’s other cost-cutting measures.

The Emergency Department to hospital administration. Dr. Systematic’s recommendations were followed.

implemented and used as a model for other hospital departments Dr. Systematic for effective results

The Hospital Management recognized analysis and appraisal with the Doctor of the Year award.

Health and Hospital Management Exam Paper


IIBM stands for the Institute of Business Management.

1. What assumptions does Dr. Systematic make for their inventory model?

2. Do you have any additional suggestions for reducing inventory costs in a hospital?


Section C: Applied Theoretical Foundations (30 marks)

This section is made up of Applied Theory Questions.

Respond to all of the questions.

Each question is worth 15 points.

Your response should include detailed information.

1. Can you write a brief description of the structure and function of the hospital organization?

2. Make a list of the following terms:

1) System of Labor Relations.

2) Hospital Employees’ Organization.