chapter 13 inventory management

an inventory
a listing of the goods or items that a business will use in its normal operation.
rarely used medications…
might not be kept in inventory but instead ordered as needed.
2 goals of inventory
to ensure drugs are available when needed and that contract or special pricing is followed.
participants in the inventory process
the pharmacy, the institution, the wholesaler, the manufacturer, the government, insurers and other third parties.
why use wholesalers?
obtaining pharmacy stocks from individual manufacturers would be a difficult and costly process. wholesalers however stock inventories of the most used medications, obtain less used medications as they are needed, and make frequent deliveries often daily. provide added value services such as emergency delivery, automated inventory systems, automated purchasing systems, generic susbstituion options, private label products. REDUCES STAFF.
many hospitals, HMOS, insurers, and other health care systems maintain a list of medications called
a formulary. these are medications that are approved for use in the system.
HMO
an organization that provides managed health care for insurers. health maintenance organization
what kind of formulary allows purchase of any medication that is prescribed
an open formulary
why are closed formularies used
as a cost savings tool in which less expensive substitutes are stocked though these substittues are mainly therapeutically equivalent.
how is a closed formulary different from an open one
it is a limited list of approved medications and a physician must receive permission to use medication not on the list.
where do you get drugs when they are not available from wholesalers
directly from the manufacturer. in this case a purchasing account for the pharmacy must be set up with the manufacturer.
what percentage of sales are directly to drug whole salers
more than 3/4.
are wholesalers government liscensed
yes and regulated as well.
what is the DEA’s main job?
regulates the distribution of controlled substances and has various distribution, inventory record keeping and ordering requirements.
what is the rules for controlled and non controlled drugs and stocking
they can be stocked separately in a locked cabinet or dispersed with non-controlled drugs.
schedule 2 drugs require what?
a special reorder form.
controlled substances must be
continually monitored and documented.
all records of controlled substances must be kept on hand for
2 years unless state law requires a longer time frame.
when drugs need to be purchased pharmacies buy them directly from
wholesalers
sometimes manufacturers
or participate in large purchasing groups known as GPOs
GPO
group purchasing organization. independent pharmacies and hospitals often join buying groups that negotiate bulk contracts because its alot cheaper.
it is important to buy from wholesaler and suppliers who can
document the pedigree or path of a drug from manufacturer to consumer.
a pharmacy may use their own
inventory system or use the wholesalers inventory system.
what does an inventory system do
tracks inventory, forecasts needs, and generates reorders to maintain adequate inventory.
goal of a good inventory system
to have right amount of stock at the right price available at all times.
too many drugs on hand
involves unnecesarry cost and maintenance and may result in spoilage.
in order to maintain an adequate supply of medications pharmacies use a
perpetual inventory system. a perpetual inventory system maintains a continuous recrod of every item in inveotry so that is always shows the stock on hand. this is a requirement for schedule II substances.
it is important task of the pharmacy technician to
constantly check all stock for drugs going out of date.
if the medication cannot be completely used before the expiration date
it must be appropriately disposed or returned to the supplier for credit. it must be ALL USED UP before the date passes.
whoo will accept expired meds when wholesalers do not
the drug manufacturer will.
when returned packages must generally be
unopened.
what act requires safe disposal of medications
Safe Water Drinking Act.
what company can assist with complying with regulations for disposing of non returnable medications
stericylce.
must comply with whose regulations for disposing
OSHA
EPA (ENVIRONMENTAL PROTECTION AGENCY)
and DOT (DEPARMENT OF TRANSPORTATION)
what is the turnover rate
the number of DAYS it takes to use the complete stock of an item.
if a supplier’s payment terms are thirty days net and stock turnover averages less than thirty days
the stock will be sold before the supplier must be paid, which lowers the cost of the stock.
what is the general rule of stock and prescriptions
20% of your stock will account for 80% of your orders or prescriptions.
what should you do to keep inventory dollars low
focus on keeping a 1-2 week suply of fast moving drugs and a month’s suply of slower moving drugs.
besides monitoring stock on hand, it is important to minitor
the market availability of medications. for ex. if a particular drug is unavilable this can increase market demand for substitues.
what does a point of sale system do
item is deducted from inventory as it is sold or dispensed. transaction often triggered by scanning of a bar code on the medication packaging though it can also be keyed in the sytsem.
in order to maintain adequtae invenotry for their needs, community and institutional pharmacies maintain computer databses of their inventory using
drug reorder points.
what are drug reorder points
maximum and minimum amounts of inventory levels for each drug.
when the minimum reorder point of a medication is reached
most computer systems will generate an automatic purchase order for more of it.
computerized inventory systems provide a continuous picture of the inventory situation through
automated reports that allow users to analyze and monitor turnover, produce purchase orders based on reorder points and forecast futur eneeds.