Organization Of The Practice

Question 1

Operating Level

Answer 1

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.

Question 2

Define Holding Costs

Answer 2

The costs of owning and keeping inventory on the premises in anticipation of use.

Question 3

Define Stock-Out

Answer 3

The event of running out of a supply item before the next order arrives.

Question 4

Define Lead Time

Answer 4

The time between when the order was placed and when the shipment is received.

Question 5

Define controlled substances

Answer 5

Those drugs that are subject to abuse, the possession and used of which is regulated under the controlled substance act.

Question 6

OSHA applies to which employers?

Answer 6

All regardless of the number of employees.

Question 7

Which item poses greatest challenge for maintaining an accurate perpetual inventory system?

Answer 7

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.

Question 8

Holding expenses

Answer 8

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.

Question 9

S.O.A.P

Answer 9

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.

Question 10

SOMR

Answer 10

Source Oriented Medical Records

Chronologically by office visit or period of hospitalization

Question 11

POMR

Answer 11

Problem-Oriented Medical Record
Chronologically ordered according to each identified health problem. Links all record information to various patient health problems as they arise.

Question 12

Operating Level

Answer 12

The inventory amount that is expected to be used up between the point of order receipt to the time another order will be placed.

Question 13

Mission Statement

Answer 13

A statement of the role, or purpose, by which an organization intends to serve its stakeholders.

Question 14

Six C’s of Client Relationship Management

Answer 14

Consistency
Compassion
Client Service
Convenience
Competence
Cost

Question 15

Economic Order Quantity

Answer 15

EOQ - The most economical quantity of a product to order factoring in both holding and ordering costs.
EOQ = (divided) 2DO/H

Question 16

Vision Statement

Answer 16

Identifies the organization’s future goals and objectives. 3-5 sentences long and clear.

Question 17

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?

Answer 17

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.

Question 18

Just-In-Time Inventory

Answer 18

Receiving product as it is needed, rather than storing it

Question 19

Re-order point

Answer 19

Inventory level at which additional product is ordered.

Question 20

Safety stock

Answer 20

Inventory remaining past order point.

Question 21

OU

Answer 21

Eyes, right and left

Question 22

AS

Answer 22

Ear, left

Question 23

Inventory calculations

Answer 23

Calculate turns per year: Amount purchased for the year divided by average invoice.
Average inventory:
Beginning value and ending value and divide by two.

Question 24

For controlled substances, the inventory procedure and documentation must be repeated how often?

Answer 24

2 years

Question 25

QID

Answer 25

Four times per day

Question 26

EOD

Answer 26

Every other day

Question 27

SID

Answer 27

Once per day

Question 28

Average shelf life in days

Answer 28

Number of days in a period divided by turn over rate

Question 29

Ration-Based inventory

Answer 29

Inventory is easier to control if it is held in smaller quantities. Theft is easier to detect.

Question 30

BID

Answer 30

Twice per day

Question 31

TID

Answer 31

Three times per day

Question 32

FOB Shipping point

Answer 32

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.

Question 33

How many inventory turns should you average per year?

Answer 33

8-12 times per year

Question 34

Indirect costs can account for ______% of the cost of the products.

Answer 34

25-40%

Question 35

What is the average holding cost?

Answer 35

8-20%

Question 36

Order placement costs can account for how much?

Answer 36

15-20% of the retail cost of a product.

Question 37

Inventory Chart of Accounts

Answer 37

Directory of codes related to products that will be used to determine cost centers and profit centers to be monitored within the accounting software.

Question 38

Key Performance Indicators (KPIs)

Answer 38

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.

Question 39

Perpetual inventory

Answer 39

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.

Question 40

Shrinkage

Answer 40

This is a term used to describe the loss of inventory. This is a result of theft, inventory not being invoiced, Obsolescence and outdates.

Question 41

FOB Desination

Answer 41

Freight on Board Destination - title passes when the merchandise is delivered to the buyer.

Question 42

AI

Answer 42

Average inventory -

Formula= beginning inventory plus ending inventory divided by two equals average inventory

Question 43

Inventory turn over ratio

Answer 43

Total purchases during the year (DMSP) divided by the average inventory (AI) equals inventory turn over ratio.