1. CHAPTER 12 Inventory Management

2. Chapter 12 Assignment  Turn to page 305  Look at the Pharmacy Education and Related Information and Government websites given.  Visit AT LEAST 3 sites listed.  Write a paragraph about site.  Include key points from the website and how this information will be helpful to you in the pharmacy field.

3. Objectives  At the completion of study the student will:  Understand the goal of inventory management and the use of wholesalers and a formulary  Become familiar with the inventory systems necessary to maintain adequate inventory.  Be knowledgeable of the technology used in inventory systems.  Know the ordering and receiving process related to inventory management.  Be familiar with the forms used during inventory and ordering.  Understand the procedures for stocking and storing pharmacy inventory.

4. What is an inventory?  An inventory is a listing of the goods or items that business will use in its normal operation.  Generally this is based upon what the pharmacy is expected to need.  Goals:  Ensure drugs are available when needed  Contract or special pricing is followed.

5.  The technician plays a critical role in inventory management  Other participants include the pharmacy, institution, wholesaler, the manufacturer, the government, insures and other 3 rd parties.

6. The Formulary (based on evaluations of efficacy, safety, and cost-effectiveness of drugs)  Allows purchase of any medication that is prescribed.  Limited list of approved medications.  Physician’s must get approval to use medications not on the list.  Cost saving tool Open FormularyClosed Formulary

7. Systems  Pharmaceutical inventory systems tracks inventory, forecasts needs and generates reorders to maintain adequate inventory.  Goal: Right stock, right time, right price…  Spoilage & Disposal  Turnover  Fast movers & slow movers  Availability

9. Tools  Point of Sale  Reorder points  Automated reports  Order entry devices

10. Computers…  Computerized inventory systems automatically adjust inventory and generate orders based on maintaining set inventory levels.  Considerations  Entering correct information  System care and maintenance  System backup  Manual checking

11. Automated Dispensing Systems

12. Ordering Systems  Include automated and manual activities  Manual-checking, editing and confirmation  Automated-system based stock levels and reorder points.  Ordering details-Shipping, MSDS, Credits/Returns, receiving

13. Forms  Purchases online  Confirmation  Shipping invoice  Returns

14. Stocking & Storing  Stock bottles from manufacture  Unit dose, individual dose  USP guidelines for repacking medications  Store medications according to manufacturer’s specifications  Refrigeration 40*-42*  Room temp 59*-86*  Bar codes-NDC number identifies product  Store medications so oldest items are dispensed first

15. Questions???  Complete Review for Chapter 13  Complete Handout