The current meaning of LUM regarding supply chain management is “Logical Unit of Measure”. Other commonly referenced terms are “Low Unit of Measure”, “Just In Time” (JIT). The new definition better describes the emphasis on Just In Time methodologies to set inventory levels to the correct unit of measure for the specific need. The focus is to find the unit of measurement that provides the most efficient level to support patient care, not necessarily the lowest.
The main objective for LUM is to provide products in the most efficient amount or quantity from a distributor. The orders are picked, packed and delivered by the distributor to the stocking location, end-user department or point-of-care. This allows hospitals and medical centers to spend less time on managing inventory and focus resources on value-added tasks and greatly reduce inventory, saving money and valuable storage space.