B D E F G H J K L M N 0 P Q R S T U V Linen Inventory Security Cost-Benefit Following is information for a 120-bed facility Initial Purchases Discards Daily usage Par levelsiventory Oct 1 Benefit Closing Actual Over Needed to inventory count (Short) get to par Oct 31 Oct 31 levels Petty thefts Restitution or lawsuit Probabi Estimated Potential loss loss 0.7 $2,500 $1,750 70% reduction 0.2 $800,000 $160,000 20% probabili $161,750 17 70 180 10 280 891 1810 1846 96 300 96 400 Cost 380 Bath towels Hand towels Wash cloths Bed sheets Pillow cases Blankets Bedspreads Mattress pads 312 807 1660 1754 276 162 162 230 0 8 6 11 280 891 1,810 1846 268 154 158 224 268 Electronic surveillance $150,000 300 200 150 200 154 158 4 Benefits exceed costs, hence it is worth investing $150,000 224 Notes: Par levels for pillow cases, blankets, bedspreads, and mattress pads are not based on daily usage x 5 because they are infrequently changed. Review the housekeeping linen inventory sheet and establish the par levels based on daily usage. Note that not all items require par levels at daily usage x 5. Discards can amount to pilferage. Hence, discards should be authorized by the Nursing Home Administrator. The physical inventory sheet will almost always show some discrepancies. For example, the shortage of 150 wash cloths may be excessive. So establish the par levels for the highlighted items in green Calculate the closing inventory and amounts needed to bring the inventory up to par levels for the highlighted items in green