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Inventory Management in Pharmacy

The document discusses key aspects of pharmaceutical inventory management systems including perpetual inventory, reorder points, receiving and processing orders, stocking and storing medications, drug pricing, recalls, and the FDA recall process. It provides definitions of important terminology and outlines the roles and responsibilities of pharmacists, technicians, and other pharmacy staff in maintaining accurate inventory.

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188 views22 pages

Inventory Management in Pharmacy

The document discusses key aspects of pharmaceutical inventory management systems including perpetual inventory, reorder points, receiving and processing orders, stocking and storing medications, drug pricing, recalls, and the FDA recall process. It provides definitions of important terminology and outlines the roles and responsibilities of pharmacists, technicians, and other pharmacy staff in maintaining accurate inventory.

Uploaded by

nareshph28
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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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

Computers and Inventory


Automatically adjust inventory Continuous picture of the inventory Generate orders
Automatic Manual

Only as accurate as the information entered

Order Details
Shipping Material Safety Data Sheets (MSDS): chemotherapeutic agents, refrigeration Credits and Returns Receiving the order

Receiving the Order


Checking in the Order Compare the invoice with products
Right drug, strength, size, quantity, in date?

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

Stocking and Storing


Drugs must be stored according to manufacturers specification. Noted on package label
room temperature: 59-86 F refrigeration: 40-42

Physical Organization: Varies with location


rotation of stock important, oldest product in front (called facing)

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

Pricing for Patient


Various formulas are used to determine the price of a medication for the patient, third party plan, etc. This formula will be given to you or set-up in the computer. For example: AWP- 10% + 5.00 (dispensing fee)

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

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