Pharmacy Inventory Management

Question 1

What is just-in-time ordering?

Answer 1

ordering a product just before it’d used

Question 2

What is PAR ordering

Answer 2

PAR stands for periodic automated replacement

-amount of drug automatically reordered

Question 3

What is ABC analysis?

Answer 3

method used to identify and define inventory items based on usage

Question 4

What is the 80/20 rule?

Answer 4

80% pharmacy drug costs are derived from 20% of pharmaceuticals carried. Focus on inventory control of top 20% of drugs carried

Question 5

What is an inventory turnover rate?

Answer 5

The cost of goods sold over the inventory value

Question 6

Economy order quantity

Answer 6

also called minimum cost quantity.
-the method used to incorporate the point in which the combination of order costs and inventory holding costs are taken into consideration

Question 7

What is the compliance report?

Answer 7

report of all items not purchased

Question 8

What is initial inventory?

Answer 8

all controlled substances taken before opening a new pharmacy or when there is a change in the pharmacist in charge

Question 9

What is Biennial inventory?

Answer 9

an inventory required by the Drug Enforcement Agency of all controlled substances every two years

• all scheduled two drugs must be counted
• schedule 3,4, 5 and exempt narcotics can be estimated

Question 10

What is a perpetual inventory?

Answer 10

an inventory that reflects exactly on hand at a particular time. Often perpetual inventories are maintained on schedule 2 medications and any other medication the pharmacy may wish to keep track

Question 11

What is a physical inventory?

Answer 11

A inventory conducted yearly to determine exactly what is on hand at a particular time and the value of the inventory is based on the current cost of the item at that time

Question 12

How many numbers are in the NDC numbers and what do they stand for?

Answer 12

NDC stands for national drug code.

• there are 11 numbers:
• the first 5 numbers identify the manufacturer
• the next 4 identify the drug product
• the final 2 numbers represent the packaging size

Question 13

What is point of sale?

Answer 13

An item deducted from inventory as it is dispensed and in many cases in auto reordered

Question 14

What is a purchase order?

Answer 14

it is a form used to order drugs and supplies from wholesalers

Question 15

What temperature is in a freezer?

Answer 15

-25 to 10 degrees Celsius (-13 to -14 degrees F)

Question 16

What temperature represents cold?

Answer 16

not to exceed 8 degrees Celsius (46 degrees F)

Question 17

What temperature represents cool?

Answer 17

temperature between 8 to 15 degrees Celsius (46-59 degrees F)

Question 18

What temperature represents room temperature?

Answer 18

temperature between 15 to 30 degrees Celsius (59 to 86 degrees F)

Question 19

What temperature represents warm?

Answer 19

temperature between 30 to 40 degrees Celsius (86 to 104 degrees F)

Question 20

What temperature represents excessive heat?

Answer 20

Temperature above 40 degrees Celsius (above 104 degrees F)

Question 21

What are FDA classifications of drug recall?

Answer 21

There are three classes:

• Class 1: will cause serious health issues or death
• class 2: adverse effects that are temporary or medically reversible
• class 3: use of product will probably not cause adverse effects

Question 22

What happens in Phase one of the Drug Approval Process in clinical trials?

Answer 22

Phase one determines the appropriate dose range with regard to safety and toxicity
-conducted with small number of individuals (20-80) for 9 to 18 months

Question 23

What happens in Phase 2 of the Drug Approval process in clinical trials?

Answer 23

performed with 100-300 patients who have the disease or condition to be treated

• often with hospitalized patients involved in close monitoring
• focuses on appropriate dosing

Question 24

What happens in Phase 3 of the Drug Approval process in clinical trials?

Answer 24

involves 300 – 3000 volunteers and can last up to four years. It is used to continue monitoring the efficacy of the drug, as well as exploring any longer-term adverse reactions. About 25% to 30% of these drugs move on to the last phase of clinical research.

Question 25

What happens in the first phase of the drug process?

Answer 25

Called discovery and development
-Studies are conducted on appropriate dosage; methods for administration; side effects and how they may vary within different demographic groups; how the drug is absorbed, metabolized, and excreted; drug interactions, and how effective it is compared with similar compounds.

Question 26

What happens in phase two of the drug approval process?

Answer 26

Also called preclinical research
-Once researchers have examined the possibilities a new drug may contain, they must do preliminary research to determine its potential for harm (toxicity). This is categorized as preclinical research and can be one of two types: in vitro or in vivo.

In vitro refers to experimenting within a controlled environment outside of a living organism, while in vivo means the experiment occurs in a living organism. Both kinds of preclinical research must follow regulated laboratory practices, known as Good Laboratory Practices (GLP), which outline basic requirements for researchers, facilities, equipment, etc.

Preclinical studies are smaller than most clinical trials, but they must provide detailed evidence about appropriate dosing and toxicity levels. If researchers review the findings and determine it is safe to test in humans, drug development moves on to Phase III.

Question 27

What happens in phase 3 of the drug approval process?

Answer 27

Also called clinical research
-After the safety of a drug is determined, researchers must examine the ways in which drugs interact with the human body. Clinical research involves trials of the drug on people, and it is one of the most involved stages in the drug development and approval process. Clinical trials must answer specific questions and follow a protocol determined by the drug researcher or manufacturer. To design a study, researchers must determine its length and scope, as well as who can participate and how the data will be collected and analyzed.

Question 28

What happens in phase four of the drug approval process?

Answer 28

aka FDA Review
-Once the pharmaceutical company can prove (through preclinical research and clinical trials) that a drug is safe and is effective in treating a condition, they can file an application to allow marketing of the drug. The application contains clinical results, labeling information, safety information, drug abuse potential, patient information, and directions for use.

The FDA review team ensures that each application is complete, and then takes the next 6 – 10 months to make a decision. The application is reviewed, as well as the clinical study sites. Often, there are issues that must be resolved before approval; the review team may request further data before they make a final decision. If the FDA review team greenlights the drug, they work with the applicant to develop prescribing information and then move on to the next phase.

Question 29

What happens in phase 5 of the drug approval process?

Answer 29

aka FDA Post-Market Safety Monitoring
-Although researchers and applicants must work for many months to determine the safety of a potential drug, there are still issues that may arise only after the drug is on the market.

The last phase of drug approval is an ongoing one while the drug is on the marketplace. If a developer wants to change anything about the drug formulation or approve it for a new use, they must apply with the FDA. The FDA also frequently reviews the drug’s advertising and its manufacturing facility to make sure everything involved in its creation and marketing is in compliance with regulations.

New drugs are protected by patents when they are approved for marketing, and generic drugs can only be manufactured once the patent expires. Generics must contain the same dosage form, strength, safety, quality, and intended use.

Question 30

What does the DEA form 106 do?

Answer 30

filled out after there is a theft

Question 31

What does DEA form 41 do?

Answer 31

filled when controlled substances are destroyed

Question 32

What is the current replacement cost mean?

Answer 32

cost to replace inventory item