How do you calculate par level in nursing home?

To calculate par level in a nursing home, you need to consider several factors that affect the demand and supply of items. Here's a step-by-step guide to help you calculate par levels:

1. Determine Average Daily Usage (ADU):

- Identify the item for which you want to calculate the par level (e.g., incontinence briefs, medications, or medical supplies).

- Gather historical data on the daily usage of that item over a specific period (typically 30 to 90 days).

- Calculate the average daily usage by dividing the total usage during the selected period by the number of days.

2. Define Safety Stock Quantity:

- Safety stock is an additional quantity of the item maintained to guard against unexpected fluctuations in demand or delays in delivery.

- Set the safety stock level based on factors such as lead time for supplies, variation in usage, and criticality of the item. This can range from 10% to 50% of the ADU.

3. Calculate Par Level:

- Add the average daily usage (ADU) to the safety stock quantity to arrive at the par level.

Par Level = Average Daily Usage (ADU) + Safety Stock Quantity

For example:

Consider an incontinence brief that has an ADU of 50 units per day and a desired safety stock level of 20% (10 units).

Par Level = 50 Units (ADU) + 10 Units (Safety Stock)

Therefore, the par level for the incontinence briefs in this nursing home would be 60 units.

Remember that par levels may vary based on your facility's specific needs and circumstances. Regularly review and adjust par levels based on changing usage patterns and supplier performance to ensure optimal inventory management.