Inventory Management in Pharmacy
Inventory Management in Pharmacy
Pharmaceutical inventory system is able to track inventory, forecast needs, and generate reorders to maintain adequate inventory Involves everyone in the pharmacy:
Pharmacist Technicians Sales associates (OTC manager, cashiers)
Definitions
Perpetual Inventory: System maintains a continuous record of every item in inventory. Ins = outs Turnover: The rate at which inventory is used, generally expressed in number of days. Impacts spoilage and cost of stock
Point of Sales
POS an inventory system in which the item is deducted from inventory as it is sold or dispensed
Reorder Points
Minimum and maximum stock levels which determine when a reorder is placed and for how much
Order Details
Shipping Material Safety Data Sheets (MSDS): chemotherapeutic agents, refrigeration Credits and Returns Receiving the order
Pharmacist will check in controlled drugs Report any discrepancies Sticker and price items Resolve shorts and out-of-stocks Process invoice
Forms
Online Ordering Screen: Verify accurate, make corrections, note confirmation number (purchase order number) Confirmation printout: hardcopy of what was transmitted Shipping Invoice Return Forms: original p.o. number, item number, quantity, reason for return
Drug Pricing
Terminology
AWP: Average wholesale price = an average from around the country of what that drugs wholesale price is Acquisition cost (cost) = The actual price that the pharmacy paid for the drug Contract price = The price paid by the pharmacy for a drug based on a contract with a drug manufacturer or a buying group
Terminology
Dispensing fee = A fee above and beyond the cost of the drug that is remuneration for the pharmacy service provided MAC = maximum allowable cost = maximum price allowed to charge by the pharmacy to federally funded prescription programs Cognitive service fee = A fee provided to a pharmacy/pharmacists for services they provide other than dispensing
Selling price: The selling price is 100% of the amount you will receive for the sale of an item. Markup: Defined as the difference between your cost for a product and its actual selling price. Selling price = Cost + Markup
Percent Markup
Percent markup based on cost Markup = % Cost Percent gross profit Markup = % Selling price
Recalls
FDA
Monitors drugs or other medical products once approved MedWatch Several options if a marketed drug presents a risk of illness, injury, or gross consumer deception
Injunction Recall
Injunction
A court order preventing a specific action, such as the distribution of a potentially dangerous drug
Recall
The action taken to remove a drug from the market and have it returned to the manufacturer
Recall Classifications
Class I : Strong likelihood that the product will cause serious adverse effects or death Class II : A product may cause temporary but reversible adverse effects, or in which there is little likelihood of serious adverse effects Class III : A product is not likely to cause adverse effects
Recall Process
FDA receives reports of adverse effects Manufacturer agrees to recall
Recall strategy, depth of recall wholesale, retail, or consumer level. Effectiveness of the recall no follow-up or follow-up
Customer contacted
The product name, size, lot number Reason for recall and hazard involved Instructions on what to do with the product Recalls listed publicly