lesson 6

Question 1

It refers to the sum total of those activities necessary for acquisition, storage, sale, disposal, or use of materials.

Answer 1

Inventory Management

Question 2

Inventory Management refers to the sum total of those activities necessary for ____, ____, _____, ____, or ___ of materials.

Answer 2

acquisition
storage
sale
disposal
use

Question 3

It is the heart of the drug supply system. Without a healthy inventory management system, the drug supply system as a whole will not be feasible.

Answer 3

Inventory Management

Question 4

It is described as an itemized list of goods with its estimated worth (the cost of medicines transferred to the pharmacy for sale and issuance to patients).

Answer 4

Inventory Management

Question 5

It is regularly submitted to the accounting section.

Answer 5

A monthly inventory of stocks

Question 6

Purposes of Inventory Management

Answer 6

Operational
Financial

Question 7

To ensure the adequate supply of drugs conforming with the requirements of the hospital turn-over at a reasonable rate without carrying excess quantities.

Answer 7

Operational

Question 8

To optimize the inventory investment at a given time, reduce the cost of handling, storage, issuance, interest
and at the same time avoid losses from deterioration, expiry dates, pilferages and falling prices.

Answer 8

Financial

Question 9

Types of Inventory Management

Answer 9

Physical Inventory
Perpetual Inventory

Question 10

Objectives and Requirements of Inventory Management

Answer 10

 To have the stock available when and where needed;
 To reduce undue strain on the government’s scares
resources;
 To maximize utilization of available storage facilities;
 To provide area for cost reduction on drugs without
compromising quality; and
 To ensure minimal waste/expired drugs through
proper storage management.

Question 11

The quantity of inventory on hand is determined through the actual count of items as contrasted with accepting
the values shown in records.

Answer 11

Physical Inventory

Question 12

It is a Commission on Audit (COA)
requirement to ensure that the hospital’s fiscal operation is properly recorded and that adequate inventory is
maintained.

Answer 12

Semi-annual physical inventory of drug products and other supplies

Question 13

The best way to ensure physical inventory accuracy is maintained through:

Answer 13

cycling counting

Question 14

It means to continually count available drug products.

Count part of the inventory on any given day, and count each item several times per year. Most pharmacists in the hospitals undertake this process of inventory so as to check accuracy of the
running balance recorded as against the actual count.

Answer 14

Cycling Counting

Question 15

Drugs/medicines received on the day of the inventory or shortly thereafter shall not be counted as clearly marked:

Answer 15

“post inventory”

Question 16

It is a system where information on inventory and availability is updated in a
continuous basis. With this type of inventory, costs of goods sold are recorded. This type keeps inventory at its current balance throughout the year.

Answer 16

Perpetual or Continuous Inventory

Question 17

A perpetual inventory system may be facilitated either through a ____ or by
means of an ____. The use of any of these systems would provide a hospital with a record of all inventory items, a maintained balance in quantity and monetary value.

Answer 17

manual system of visible index cards

electronic data system

Question 18

As provided for in the ____, _____, the
pharmacist is held responsible and accountable for all drugs purchase.

Answer 18

• Pharmacy and Therapeutics Committee (PTC)

• Policy and Standard Operating Procedures (SOP) on hospital operations

Question 19

The pharmacist shall develop an effective system in the control of ____, ____, and ____ of pharmaceuticals and raw materials used for compounding and for pharmaceuticals.

Answer 19

purchase
inventory
adequate maintenance

Question 20

In order to provide an effective inventory management and preclude over and understock of medicines, pharmacists should consider the following factors:

Answer 20

 The information on the balance of the budget for
drugs/medicines
 Selection of drug products to be held in stock
 Regular monitoring of drug products in stock
 Availability of alternate drugs/medicines
 The conditions such as seasonal demand
 The ratio of supply and demand
 Transportation and delivery time problems

Question 21

The problem of overstocking and understocking of drugs can be attributed to the following:

Answer 21

 Ineffective purchasing process
 Inefficient monitoring and control systems
 Incomplete submission of technical requirements
 Poor storage facilities
 Inadequate space for storage
 Time lag between requisition and purchase.
 Supplier’s out of stock problem
 Transportations and delivery problems
 Geographical and climatic conditions

Question 22

Health care cost containment and financing efforts are exerting pressure on all hospital departments to justify
their cost and improve their services. Pharmacists in the hospital are faced with problems of rapidly escalating budget due to the rising cost of medicines and the difficulties to contain or reduce these costs.

Answer 22

In addition, scares resources allocated within the health system and the increase strain to reduce not only the cost of drug therapy, and also the total cost of providing pharmaceutical services add to the complexity of improving hospital services.

Question 23

It has always been identified as the
restrictive factor in government hospitals that leaves very little funds for operational and capital needs.

Answer 23

limited budget

Question 24

DOH created financing reforms for
healthcare institutions under the ___, to be able to secure, better and sustained investment in health.

Answer 24

FOURmula One Plan (F1)

Question 25

This involves strategic action plans that seek to provide equity and improve health outcomes, not only to benefit the underprivileged, but also the middle-income earners.

Answer 25

FOURmula One Plan (F1)

Question 26

F1 Components

Answer 26

 Mobilizing resources from extra budgetary sources
 Coordinating local and national health spending
 Focusing direct subsidies to priority programs
 Adopting a performance based financing system
 Expanding the National Health Insurance Program
(NHIP)

Question 27

In line with the F1 components, they shall assist in identifying methods to achieve reduction of drug expenditures and increases on pharmacy income.

Answer 27

hospital pharmacists

Question 28

 In line with the F1 components, hospital pharmacists shall assist in identifying methods to achieve
reduction of drug expenditures and increases on pharmacy income.

 They must act appropriately on the financial impact of inventory carrying costs, addition of new items to the
formulary, and change in turnover rates.

Question 29

 to obtain by paying money or its equivalent, to buy for a price.

Answer 29

Purchase

Question 30

 to exercise directing, guiding or restraining of power over.

Answer 30

Control

Question 31

 In the national government agencies, contract shall be generally awarded to the most attractive offer.

Answer 31

Purchasing Through Public Bidding

Question 32

 In the national and corporate government agencies, these are allowed only in cases where the need for supplies, materials, furniture, equipment or repair of an equipment is exceptionally urgent or
absolutely indispensable to prevent immediate danger to, or loss of life/property or to avoid detriment to public
service.

Answer 32

Emergency Purchase

Question 33

Is a system of purchase which dispenses with the stringent requirements of public bidding.

Answer 33

Negotiated Purchase

Question 34

 Procurement may be made directly from duly-licensed Philippine manufacturers.

Answer 34

Procurement from Duly-licensed Manufacturers and Exclusive Distributors

Question 35

In cases where there are two or more producers/suppliers of the supplies desired, bids of the known manufacturers/distributors should be obtain the ____ for the quantity of supplies desired

Answer 35

lowest price

Question 36

 The procurement service is under the Department of Budget and Management (DBM) with respect to:
 Operation of a government-wide procurement system
for common use office supplies; and
 Monitoring of prices for common-use supplies,
materials and equipment.

Answer 36

Procurement through the Procurement Service

Question 37

 Procurement from other Philippine government entities
 Purchase from foreign government entities

Answer 37

Procurement from other Philippine Government Agencies or Foreign Governments

Question 38

 It is a procurement where an agency buys from the same supplier, same items at the same prices in addition to the quantity in the original contract.

Answer 38

Purchase through Repeat Orders

Question 39

Types of Purchases

Answer 39

• Purchasing through Public Bidding
• Emergency Purchase
• Negotiated Purchase
• Procurement from Duly-licensed Manufacturers and Exclusive Distributors
• Procurement through the Procurement Service
• Procurement from other Philippine Government Agencies or Foreign Governments
• Purchase through Repeat Orders

Question 40

In determining how much drug should be ordered at given time, it is important that it is achieved through a:

Answer 40

satisfactory inventory turnover

Question 41

The hospital pharmacist should control
purchase volume and inventory considering the use/or the
consideration of the following:

Answer 41

• Balance of Stock
• Establishment of the Ordering Point or Reorder Quantity Level (RQL)
• Dead Inventory

Question 42

Refers to expired and damaged drugs. For proper disposition/condemnation, use the Waste Material Form.

Answer 42

Dead Inventory

Question 43

 Utilizing the form Stock Position Sheet for slow and fast-moving drug items.
 To arrive at this stage of the process, the average consumption rate per day is determined.

Answer 43

Establishment of the Ordering Point or Reorder Quantity Level (RQL)

Question 44

Balance of stock on hand at the pharmacy plus those stocked in the storeroom.

Answer 44

Balance of Stock