Pharmacy Inventory

What is a wholesaler?

Single source that sells drugs and supplies purchased from various manufacturers to pharmacies

What is the drug supply chain security act (DSCSA)?

Law that helps make sure prescription drugs are real, safe, and not counterfeit as they move from the manufacturer to the pharmacy

How does the DSCSA work to prevent counterfeits?

Via track and trace, where medications are identified via their standardized numerical identifiers (SNIs) and tracked during movement through supply chain

What is the SNI of a med?

Uses NDC and a unique serial number

DSCSA requires what documentation?

Requires pharmacies to receive transaction info, transaction history, and transaction statement (3Ts) records for each shipment received

How long must transaction documentation be kept per the DSCSA?

6 years

What is used to report drugs that are found to be illegitimate?

Form 3911, report to FDA

After reporting illegitimate drugs, who else must be informed?

Trading partners within 24 hours

What is par level?

Reorder point for a specific medication to maintain a targeted amount on hand (helps prevent running out)

What is perpetual inventory?

Ongoing inventory that provides constant, real time inventory info

What is are the correct temperature ranges for room temperature?

15 °C to 30 °C
59 °F to 86 °F

What is are the correct temperature ranges for refrigerator?

2 °C to 8 °C

36 °F to 46 °F

What is are the correct temperature ranges for freezer?

-25 °C to -10 °C

-13 °F to 14 °F

When must fridge and freezer temps be checked and logged?

Twice daily

Who regulates expiration dates for meds?

USP (united states pharmacopoeia

What is the usual expiration date for most meds?

2 or 3 years from manufacture

If an expiration date only says month and year, what day does it expire?

Last day of month

What is a BUD?

Beyond use date for meds that have been repackaged or manipulated

What products get assigned BUDs?

Unit dose, reconstituted suspensions, compounded preps, or prepared IVs

Unit dose meds usually have a max _______ BUD after repackage.

Six months

When do pharmacies check for expired meds?

Once a month or every 3 months

Most pharmacies require meds expiring in…to be pulled off

Expiring within next month to 3 months

What is a short-dated med?

Medication that expires in less than a year

What is inventory?

Entire stock of meds on hand at any given time

What is average inventory value?

Average dollar value of inventory you had during a period

What is the average inventory value formula?

Starting inventory + Ending inventory / 2

What is the inventory turnover rate (ITOR)?

How many times a pharmacy sells and replaces its inventory during a certain period (usually a year). Ask “how many times did we sell our entire inventory out throughout the year)

What is the ITOR formula?

Cost of goods sold / average inventory

What is cost of goods sold?

Amount pharmacy paid for goods (including shipping and other expenses)

How many times a year is a pharmacies inventory counted? What is the main reason?

Once yearly. Net profit

What will the ITOR tell us?

Whether inventory needs to be increased or decreased

What is a good ITOR for a community pharmacy?

Between 11 and 12 turnovers

What do expenses mean?

Costs, money paid out from the business

What are overhead costs in a pharmacy?

Expenses needed to keep pharmacy running (such as rent, utilities, and administrative salaries)

What is gross profit?

Amount of money left over after cost of goods is paid (does not take into account overhead, inventory, or other expenses)

What is net profit? What does a positive one mean? What about negative?

Amount left over after ALL expenses are paid. Postive = made money; negative = lost money

What is revenue?

Money made from the sale of a med on a product

What is the net profit formula?

Revenue - overhead - cost of goods sold

What is a meds cost, markup and selling price?

Cost = amout paid for a product

Markup = amount added when selling it to patients

Selling price = amount the med is with cost + markup

How is markup calculated?

Selling price - cost

How is markup percent calculated?

(Selling price - cost / cost) * 100