2. Introduction Everyone working in pharmacy maintains inventory stock Stock depleted: replacement inventories ordered Task delegated to specific person in pharmacy Goal is to keep up with anticipated demands of purchasers while still generating profits.

3. Inventory Control A procedure whereby products are purchased in sufficient quantity to meet the demands of purchasers while controlling inventory size to generate optimal profits.

4. Formulary A list that describes all the medications covered under insurance plans Offers alternative medications if first choice is not covered

5. 5 Pharmacy Stock Pharmacy orders formulary and non- formulary drugs Periodic automatic replenishment level: established level of medication stock kept on hand at any given time

6. 6 Pharmacy Stock Pharmacy Stock (Continued) Running inventory kept: point of sale (POS): item is deducted from inventory as it is dispensed order cards handheld devices inventory computers Technician in charge of all aspects of ordering, restocking, returning stock

7. 7 Bar Coding Identified by manufacturer and can be scanned Allows for faster input of information One pass of barcode: ID drug, strength, dosage form, quantity, cost, package size Medication scanned at register (Point Of Sale): electronically taken off computerized inventory list In-stock quantity drops: automatically reordered

8. Turnover Rate The number of times a product is purchased, sold, and replaced during a specific accounting period. A high inventory turnover rate is an indication of an effective inventory control.

9. Product Purchasing This involves ordering medications, durable medical equipment (DME), devices, and supplies The pharmacy may order products directly through a representative, by telephone, fax, or computer modem.

10. New Stock Stock arrives daily to pharmacy For billing purposes, check stock completely against invoice Mark stock shelves clearly to reduce drug errors Similar sounding drug names: take note

11. Proper Storage Follow manufacturer’s requirements for storage Frozen, refrigerated, light-protected, room temperature Chemicals, toxic matter: kept in cabinet low to ground Everyone in pharmacy responsible for following safety measures

12. Returns Three main reasons drugs are returned: Drug recalls Damaged stock Expired stock

13. Drug Recalls Manufacturers required by law to recall any product found to violate following guidelines: Wrong labeling Product not packaged or produced properly Drug batch contaminated Changes that fall out of guidelines

14. Drug Recalls Drug Recalls (Continued) Recall notices: arrive by mail, ID information about drug or device, how to handle, and recall procedure Important - drug’s lot number. It’s the key to ID recalled medication Patient receiving recalled medication - contact by phone - check lot number All recalled items sent back to manufacturer Reorder stock if needed

15. Recall Classification Class I recall has a strong likelihood the product will cause serious adverse effects. Class II recall has a chance the product may cause a temporary, but reversible, adverse effect or little likelihood of serious adverse effect. Class III - not likely to cause adverse effects. There is no Class IV recall.

16. Expired Stock Pharmacies pull medication within 3 months or less of expiration Example: if Cimetidine expires within 3 months, then return all full boxes of 100 tablets for full or partial credit

17. Special Ordering Considerations Controlled substances require daily inventory Investigational drugs: paperwork must be completed and returned to manufacturer each time medication given Cytotoxic drugs: handled with great care and placed in safety cabinet Hazardous substances require special handling MSDS’s: know where they are