community pharmacy-UofT

Question 1

Formula that factors in variables like total cost, demand, overhead expenses, etc. to determine the ideal inventory the company should order or have on hand

Answer 1

Economic order quantity (EOQ)

Question 2

(def):The smallest amount of inventory a retail business will purchase to keep costs
low.

Answer 2

Minimum order quantity (MOQ)

Question 3

(def):Purchasing inventory only slightly before it’s needed or as orders come in

Answer 3

Just in time (JIT) inventory management

Question 4

(def): In cases where it’s cheaper to purchase in bulk, you can order in bulk
quantities

Answer 4

Bulk shipment

Question 5

(def):Using historical sales data to forecast future demand and ordering based
on patterns

Answer 5

Demand Forecasting

Question 6

(def):First in, first out, sell/use the stock you got first i.e. oldest stock moves first.

Answer 6

FIFO: First in, first out

Question 7

(def): The minimum amount of stock to have before reordering

Answer 7

Reorder Point

Question 8

(def):Setting aside extra stock for emergencies i.e. backorders

Answer 8

Safety Stock

Question 9

(def): Counting stock physically on hand vs what reported on hand should be

Answer 9

Cycle Counting