Organization Of The Practice Flashcards
Operating Level
The operating level is the inventory amount that is expected to be used up between the point or order receipt to the time another order must be placed. This level should not drop below a pre-determined amount or a stock out could occur.
Define Holding Costs
The costs of owning and keeping inventory on the premises in anticipation of use.
Define Stock-Out
The event of running out of a supply item before the next order arrives.
Define Lead Time
The time between when the order was placed and when the shipment is received.
Define controlled substances
Those drugs that are subject to abuse, the possession and used of which is regulated under the controlled substance act.
OSHA applies to which employers?
All regardless of the number of employees.
Which item poses greatest challenge for maintaining an accurate perpetual inventory system?
Hospital consumables pose the greatest challenge for an accurate perpetual inventory system. This is because consumables, such as gauze, syringes and needles are difficult to determine quantity use.
Holding expenses
Personal property taxes that are paid by the veterinary hospital for the value of inventory. Insurance premiums and pharmacy fees are an example of holding expenses.
S.O.A.P
Subjective - Presenting complaint. More opinion than that.
Objective - Objective information. Exam and Lab findings. More fact than opinion.
Assessment - Info by doctor. Differential diagnosis.
Plan - Based on assessment. Suggestions and recommendations.
SOMR
Source Oriented Medical Records
Chronologically by office visit or period of hospitalization
POMR
Problem-Oriented Medical Record
Chronologically ordered according to each identified health problem. Links all record information to various patient health problems as they arise.
Operating Level
The inventory amount that is expected to be used up between the point of order receipt to the time another order will be placed.
Mission Statement
A statement of the role, or purpose, by which an organization intends to serve its stakeholders.
Six C’s of Client Relationship Management
Consistency Compassion Client Service Convenience Competence Cost
Economic Order Quantity
EOQ - The most economical quantity of a product to order factoring in both holding and ordering costs.
EOQ = (divided) 2DO/H
Vision Statement
Identifies the organization’s future goals and objectives. 3-5 sentences long and clear.
ABC AH began the year with 500 boxes of Promeris. They ordered 2000 additional boxes throughout the year and sold 2,341 boxes. How many should they have left at the end of the year?
159 Boxes
500 (starting inventory) +
2000 (ordered throughout the year) = 2,500.
Subtract the amount sold (2,341) from the total 2,500 for the result of 159.
Just-In-Time Inventory
Receiving product as it is needed, rather than storing it
Re-order point
Inventory level at which additional product is ordered.
Safety stock
Inventory remaining past order point.
OU
Eyes, right and left
AS
Ear, left
Inventory calculations
Calculate turns per year: Amount purchased for the year divided by average invoice.
Average inventory:
Beginning value and ending value and divide by two.
For controlled substances, the inventory procedure and documentation must be repeated how often?
2 years
QID
Four times per day
EOD
Every other day
SID
Once per day
Average shelf life in days
Number of days in a period divided by turn over rate
Ration-Based inventory
Inventory is easier to control if it is held in smaller quantities. Theft is easier to detect.
BID
Twice per day
TID
Three times per day
FOB Shipping point
Freight on Board - sale occurs at the vendor’s shipping dock. Title transfers as supplies are loaded to the shipping carrier at the vendor location.
How many inventory turns should you average per year?
8-12 times per year
Indirect costs can account for ______% of the cost of the products.
25-40%
What is the average holding cost?
8-20%
Order placement costs can account for how much?
15-20% of the retail cost of a product.
Inventory Chart of Accounts
Directory of codes related to products that will be used to determine cost centers and profit centers to be monitored within the accounting software.
Key Performance Indicators (KPIs)
Key drivers that give an “at a glance” view of the inventory expenses and cash flow. It also allows the hospital to identify hot spots/red flags to set goals to make inventory expenses low and the pharmacy more profitable.
Perpetual inventory
System of inventory control in which the number and value of inventory items can be determined directly by stock records and are updated directly as transactions occur.
Shrinkage
This is a term used to describe the loss of inventory. This is a result of theft, inventory not being invoiced, Obsolescence and outdates.
FOB Desination
Freight on Board Destination - title passes when the merchandise is delivered to the buyer.
AI
Average inventory -
Formula= beginning inventory plus ending inventory divided by two equals average inventory
Inventory turn over ratio
Total purchases during the year (DMSP) divided by the average inventory (AI) equals inventory turn over ratio.
