Inventory Management

Question 1

What is the definition of inventory?

Answer 1

The stock of medications a pharmacy keeps immediately on hand.

Question 2

What is the definition of inventory control?

Answer 2

Controlling the amount of product on hand to maximize return on investment.

Question 3

What is perpetual inventory?

Answer 3

Method of continually tracking and knowing the value of inventory and quantity of merchandise at any time.

Question 4

What are the two goals of effective inventory control?

Answer 4

1. Minimizing total inventory investment

2. Carrying the right mix of products to satisfy patient demand.

Question 5

What is Paretos Principle? (3)

Answer 5

1. 20% of inventory items account for 80% of sales
2. 15% of inventory items accounts for 15% of sales
3. 65% of inventory items accounts for 5% of sales.

Question 6

What does DIN stand for?

Answer 6

Drug Identification Number