MANAGMENT MATCH GAME

The right product

driven by target market and requires marketing research

The right quantity

How much to stock in order to avoid out of stock incidents

Stock depth

(review time + lead time) * (avg demand + safety stock)

The right time to order

Minimizes carrying costs. Ideally coincides with the sale of an item with the goal of reducing the need for safety stock

Just in time purchasing

As the last unit of an item sells, the next unit arrives before it is needed

The right price

cost of goods sold is an important element

The right vendor

factors to consider: delivery schedule, frequency of out-of-stock situations, returned goods policies, available tech

visual inventory control

visually observing number of units and comparing that to a list of how many units should be carried

periodic inventory control

Stock counts taken at intervals defined by policy

perpetual inventory control

monitoring inventory constantly using technology

rate at which the supply of an item is exhausted and replaced. High value of this means there’s reduced investment in inventory, increased return on inventory investments but possible out of stock situations

inventory turnover rate

quantity discount

reduction in price due to buying large quantities in a single order or across a set period of time

cash discount

reduction in price due to fast payment in full

product bundling

reduction in price due to simultaneous purchasing of another item - bogo deal

minimum purchasing

reduction in price of a featured generic or brand medication along with a minimum generic order

generic utilization

rebates on generic purchasing

important considerations for product stocking decisions

1. variability in inventory

2. returns management

3. monitoring shrinkage

variability in inventory

inventory reports allows managers to foretell future needs and identify thing that need extra attention

returns management

be in the habit of dispensing stock from lots soonest expiring

monitoring shrinkage

When shelf record and shelf count don’t match due to shrinkage aka lost, stolen, or misplaced goods.

balance sheet definition

itemized statement that lists total assets and liabilities. dated as of specific date

income statement definition

records company’s revenues and expenses for certain period of time

dated for period ended of a specific date

revenues-expenses= net income

statement of owner’s equity

reports how a company’s retained earnings have changed over some time period

dated for the period ended of an accounting period

statement of cash flows

reports all major cash receipts and payments during a period

Assets

things a business owns that can be used to generate income

Liabilities

money owed to others or claims others have against the company’s values

Owner’s equity

the owners worth of the company

Revenues

inflows of assets from selling goods or providing service

Expenses

costs incurred in company’s normal operating cycle to generate its revenues

Growing

company plans to remain in existence

Objectivity

accounting entries will be recorded on the basis of objective evidence

Conservation

accounting estimates should neither overstate nor understate business activities

Consistency

similar measurement procedures for related items within financial statements are applied for entire accounting period

Matching

requires that all expenses directly associated with production of revenues be reported within same period

materiality

acknowledges the significance of various decisions and their impact on financial statements such as court cases

Balance sheet items

• Cash

• Accounts receivables/payables

• Inventory/property/plant/equipment

• Prepaid accounts

• Intangible assets such as goodwill

• Mortgage notes

Income statement items

• Sales

• Cost of goods sold

• Payroll

• Advertising

• Rent

• Insurance

Working capital definition

LIQUIDITY - POSITIVE value = greater likelihood of paying liabilities

Current ratio definition

LIQUIDITY - Greater than 1:1 ratio is desired. Measures ability of pharmacy to meet its SHORT term financial obligations. Values over 5 may mean it’s not making effective use of its assets

Quick ratio

LIQUIDITY - better indicator as to how fast you can pay your creditors

Inventory turnover ratio definition

LIQUIDITY - How many times the inventory turns over during time period. High value means pharmacy might risk out of stock situations. Low value means pharmacy has inventory sitting on shelves, ties up money.

Days in inventory

LIQUIDITY - Average age of inventory

Debts to total assets ratio

SOLVENCY - Higher percentage = riskier company

Gross profit rate

PROFITABILITY - Evaluates nature of cost of goods sold. Can indicate efficient purchasing. How well are you negotiating your reimbursement contracts with wholesalers.

Net profit margin

PROFITABILITY - It indicates how well the pharmacy manages its operating expenses; evaluates operating costs. It measures the portion of each dollar that is kept as profit, that results in net income after operating expenses & taxes. It is used to reinvest in the company.

5 purposes of budgeting systems and processes used to create budget

• Planning

• Facilitating communication and coordination

• allocating resources

• controlling profit and operations

• evaluating performance and providing incentives

Flexible budget

based on price point per script

Sales budget

• Evaluates past sales and trends

• Economic trends in general and in pharmacy industry

• Market research studies

• Considers political/legal events or anything that might affect sales in industry

• Expected action of competitos

Operational budget

• Budget for production

• Merchandise

• budget for services

• cash budget

• financial statement budget

Negative good

A product that is considered a need vs a want

Reliability

Receiving the promised services dependably and accurately

Responsiveness

Receiving help and prompt service

Assurance

Knowledgeable and courteous employees who convey trust and confidence

Empathy

Caring individualized attention, appreciating customer’s circumstances

Tangibles

Appearance of physical facilities, equipment, staff, and marketing

Friendliness

Polite and courteous treatment

Fairness

Fair treatment from service providers

Control

Patients need to have an impact on the way things turn out

Options

Patients need to feel that other options are available

Information

Patients need to be educated and informed about products, policies, and procedures

Service Failure

failure to meet the expectations of a patient

Service Criticality

the magnitude of the consequences of a potential service failure (low, medium and high)

Service recovery

the attempt to correct the service failure and make things right for the patient or customer

Customer Service Recovery Paradox

Effective recovery from a service failure can potentially result in a more satisfied patient than if no service failure has ever happened

Zone of Tolerance

The “zone” is anything between desired and adequate that you are willing to take

Performance Evaluation

determining satisfaction with physical characteristics

Affect-Based Assessment

: emotional reaction that a patient experiences because of the service

Equity-Based Assessment

patients’ perception of fairness in the provision of services based on their previous experiences

Disconfirmation of Expectations

evaluating gap between expectations and perceptions

Deep Acting

includes modifying the emotions you feel about the situation

Surface Acting

Putting a “mask” on to change your expression. leads to reduced job satisfaction

Describe 6 steps for dealing with difficult patients and customers

• Let the customer vent

• Avoid getting trapped in a negative filter

• Express empathy to the customer

• Begin active problem solving

• Mutually agree upon the solution

• Follow-up

1. Enduring the offensive conduct becomes a condition of continued employment

2. The conduct is severe or pervasive enough to create a work environment that a reasonable person would consider humiliating, hostile, or abusive

Requirements to make harassment unlawful

Equal Pay Act

Prohibits differentials in wages and benefits based on employee sex.

Civil Rights Act

Prohibits discrimination based on an individual’s race, color, sex, religion or nation of origin

Title VII of Civil Rights Act

Employers have to proof that candidates are not discriminated based on race.

Family Medical Leave Act (FMLA)

(>50 employees) Protects an employee’s job by requiring for 12 weeks of UNPAID leave within a 12-month period for childbirth, adoption, illness of family member or personal illness

FUCKING NOTHING!!!

(>50 employees) Protects an employee’s job by requiring for 12 weeks of PAID leave within a 12-month period for childbirth, adoption, illness of family member or personal illness