Supply chain management Flashcards
(36 cards)
What are the factors to consider in Inventory Management?
- Selection of generic products
- Reduction of inventory size
- Returned-goods policies
- Management of unclaimed prescriptions
- Monitoring shrinkage
- Use of formularies
None
What is the purpose of the Risk Evaluation and Mitigation Strategy (REMS)?
To manage known or potential risks associated with certain medications with serious safety concerns.
REMS may include certification requirements for pharmacies to dispense certain medications.
Can you name three examples of REMS programs?
- OxyContin
- Jynarque
- Palynziq
OxyContin is a controlled-release formulation of oxycodone; Jynarque is a tablet; Palynziq is used to lower blood levels of phenylalanine in adults with phenylketonuria.
What steps should be taken once merchandise arrives?
- Count and check for damage
- Stock on shelves
- Physically count items against the invoice
- Check for short expiration dates
- Notify vendors of discrepancies or damages
Proper storage of inventory is essential to avoid loss.
What defines specialty pharmaceuticals?
Products that treat chronic, complex, and rare diseases and have at least four of seven specific characteristics related to distribution, care, and cost.
Spending on specialty pharmaceuticals increased by over 87% in the US from 2013 to 2017.
What are the characteristics of specialty medicines?
- Chronic
- Complex
- Rare
Chronic diseases are long-lasting; complex diseases have environmental and genetic components; rare diseases have fewer than 200,000 new cases annually.
What are the criteria to consider a medicine as specialty?
- High in cost (~$6000+ per year)
- Treatment initiated by a specialist
- Requires administration by a healthcare professional
- Requires special handling in the supply chain
- Requires patient payment assistance
- Distributed through non-traditional channels
- Significant side effects requiring monitoring
These criteria help identify the complexity and care needed for specialty medications.
What is the 340B Drug Pricing Program?
A program that allows certain safety-net providers to purchase prescription drugs at reduced prices, often lower than Medicaid costs.
The program was established in 1992 and extended by the Affordable Care Act.
What actions must pharmacies take under the Drug Supply Chain Security Act (DSCSA)?
- Confirm partner licenses
- Receive, store, and provide product-tracing documentation
- Investigate and handle suspect drugs
The DSCSA aims to enhance drug safety and traceability in the supply chain.
What are the main types of stock in purchasing?
- Cycle stock
- Buffer (safety) stock
- Anticipatory (speculative) stock
Each type serves a different purpose in managing inventory and meeting demand.
What is the formula to set the reorder point?
Reorder point = [(review time + lead time) x average demand] + safety stock
This formula helps ensure that stock is available when needed.
What is the Economic Order Quantity (EOQ) model?
A model that describes the level of inventory and reorder quantity at which the combined costs of purchasing and carrying inventory are minimized.
EOQ helps optimize inventory management.
What are the three types of dating in purchasing?
- Prepayment
- Collect on delivery (COD)
- Delayed (future) dating
Dating affects payment schedules and discount eligibility.
What does the term ‘sourcing’ refer to in procurement?
The methodology used to identify and manage the right product suppliers, considering vendor capabilities, pricing, and service levels.
Sourcing is essential for effective procurement.
What are some criteria to select vendors?
- Reliability and dependability
- Order accuracy
- Reputation
- Compliance with DSCSA
- Negotiation capabilities
- Delivery schedule
- Customer relations
These criteria help ensure a positive business relationship and effective supply chain management.
What role do pharmaceutical distributors play in the supply chain?
They provide vital services to support healthcare providers and pharmacies, ensuring the pharmaceutical supply chain is safe, secure, and efficient.
Distributors anticipate needs and procure necessary goods from manufacturers.
True or False: The DSCSA requires that only authorized entities can buy and sell pharmaceuticals.
True
This regulation aims to enhance the security of the pharmaceutical supply chain.
What are cash discounts?
Small discounts offered for the prompt payment of invoices
Cash discounts incentivize timely payments, benefiting both the payer and the recipient.
Define serial discounts.
Multiple discounts applied at the same time
Serial discounts can enhance savings for buyers, making products more affordable.
What is the formula for economic order quantity (Q)?
Q = 2(c)(D) ÷ (I)(UC)
Where c = procurement cost per order, D = demand, I = inventory carrying costs, UC = unit cost.
What does an open-to-buy budget help control?
The total dollar investment in inventory
This budgeting approach ensures that inventory levels are aligned with financial goals.
What is the inventory turnover ratio (ITOR) for Smith Pharmacy for FY 2019?
10
ITOR is calculated as cost of goods sold divided by average inventory.
What are the two advantages of increasing ITOR?
- Reducing investment in inventory frees capital for other business activities
- Increase in return on investment in inventory
