Logistics and Supply Chain Management of Drugs II

Question 1

What is a pipeline?

Answer 1

*The entire chain of physical storage facilities and transportation links
through which supplies move from the manufacturer to the user,
including the port facilities, central warehouse, regional warehouses,
district warehouses, all SDP, and transport vehicles, including
community-based distribution networks.

Question 2

What is Lead Time?

Answer 2

*Lead time is the time interval between when new stock is ordered
and when it is received and available for use.

Question 3

What is a Review Period?

Answer 3

The Review Period is the time schedule for reviewing stock levels
* It is also time for ordering commodities, so in example both the review period and
the order interval is quarterly

Question 4

Define Emergency Order Point.

Answer 4

Emergency Order Point the stock level at which an emergency order should be
placed to avoid a stock out whether the end of the Review Period has been reached

Question 5

What is Safety Stock?

Answer 5

Safety Stock is the buffer, cushion, or reserve stock kept on hand to protect
against stockouts caused by delayed deliveries or markedly increased demand. It
works for systems that have full supply

Question 6

What is minimum level of stock?

Question 7

What is maximum level?

Question 8

What is optimal inventory level?

Question 9

Distinguish between Push System and Pull System.

Answer 9

Push system (Allocation): *Quantities to be issued are determined by personnel
who issue the supplies

                       While

Pull system (Requisition): Quantities to be
issued are determined
by personnel who
receive the supplies

Question 10

Mention advantages and disadvantages of allocation system:

Answer 10

Advantage: Allocation systems require fewer
trained staff.
*Disadvantage: BUT it then increases the
workload of staff at the upper level (which is
determining issue quantities for man

Question 11

Mention 2 advantages and disadvantages of requisition system:

Answer 11

• Advantage: Requisition systems are decentralized
• Disadvantage: They require trained staff at the lower levels- training more
  people, time consuming and costs money.
  *
• Advantage: They place lower burden on upper level staff.
  *
• Disadvantage: They require service providers to spend more time doing
  commodity management and filling out forms - less time to serve clients.

Question 12

Distinguish between Dispensed –to-user and Issues Data

Answer 12

Information about the
quantity of goods
actually put in the
hands of clients.
* (Often shortened to
“dispensed data.”)

while

Information about
the quantity of
goods shipped from
one level of the
system to another

Question 13

What is the purpose of LMIS?

Answer 13

The purpose of LMIS is to collect,
organize and present logistics data
gathered across all levels of the
system in order to make informed
decision

Question 14

Define the following essential data items:

i. Stock on hand
ii. Rate of consumption
iii. Losses
iv. Adjustments

Answer 14

i. Quantities of usable stock available at any level or at all levels of the system at a
point in time.
ii. The average quantity of commodities dispensed to users during a
particular time period.
iii. Losses are the quantity of health commodities removed from the distribution
system (e.g., losses, expiry, damage)
iv. Adjustments are receipt or issue of supplies to/from one facility to another at the
same level (e.g., a transfer) or a correction for an error in counting

Question 15

Distinguish between Records and Reports.

Answer 15

Records - forms
on which data are
collected and
remain at the
facility where they
are recorded
……………………………..
Reports - forms on
which data are moved
from one level in a
logistics system to
another

Question 16

Discuss 4 types of records.

Answer 16

1. Stockkeeping Records:
   *Used to record information about products in storage
   *Examples:
   * Bin Card (BN): one bin card kept per lot, batch or
   expiry date; and kept with the products on the
   storeroom shelves/pallets,

• Inventory Control Card (ICC):
• Inventory control cards, generally have one per
  commodity, kept in ledger or book form, and kept
  in the product manager’s office

2. Transaction Records
   * Used to record information about the
   movement of stock from one storage facility to
   another. They contain quantity of commodities ordered/shipped, authorization to ship/receive
   commodity, proof of receipt, signature and date on the form. They usually son’t carry essential dtata items. They are proof of requisition, issue
   and/or delivery
   * Examples:
   * Record for Transferring/Returning Commodities
   * Requisition and Issue Vouchers
   * The Requisition and Issue Voucher is used for a pull system
   * An Issue Voucher is used for a push system.
3. Consumption Records
   * Use to record quantity of each product used by or dispensed to end users or used
   at an SDP when services are provided
   * Examples:
   * Daily Activity Registers
   * Logs/tally/tick sheets
   * Treatment/Dispensing register

Consumption records must contain at least the following data.
* dispensed to user data
* Issues data
* Dispensed to user data can only come from the service delivery point,

Question 17

Answer True or False.

i. Stock-keeping Record should be cross-checked against the daily activity register (DAR) at the service delivery point (SDP)
ii. Transaction number on an Requisition, Issue, and Receipt Voucher (RIRV) or Issue and Receipt Voucher (IRV) should match the numbers recorded on the ICC
iii. Accurate data from the ICC is transferred to forms and taken up the system