PTCB Pharmacy Inventory Management

markup rate

(amt markup/pharm purchase price) x 100

frozen conditions

-20C to -10C

Phase II trial

100-300 people <2 years studies efficacy

Phase III trial

1000-2000 people 1-4 yrs studies safety, efficacy, and dosing

(ideal) inventory rate

15 lower _____________ indicates stock is sitting on shelves for longer than desired and tying up larger amount of money than necessary

room temp conditions

15C to 30C

Phase I trial

20-80 people <several months studies safety of med/treatment

refrigerated conditions

2C to 8C

warm conditions

30C to 40C

Invoice

A bill of sale for products ordered

Purchase order (PO)

A document used to purchase inventory containing information about the pharmacy, the vendor, and details about each of the products ordered

Formulary

A list of preferred medications

Average wholesale price (AWP)

A suggested price assigned to each drug listed in various published pricing guides. Insurance companies reimburse pharmacies based on the ______ of the medication dispensed

reimbursement amount

AWP ± percentage + dispensing fee

Usual and customary price (U&C)

Cash price charged for a prescription if there is no insurance coverage

Wholesaler (distributor)

Company that carries a selection of medications, medical devices, and supplies

Rotating stock

Moving the products with the shortest expiration date to the front of the shelf when stocking

Markup

The difference in price between the cost at which a business purchases a product and the price at which they sell it pharm selling price - pharm purchase price

Periodic automatic replacement (PAR)

The optimal amount of each item that should be stocked at any given time

Prime vendor

The wholesaler from whom the pharmacy has committed to purchase the majority of its inventory

Dispensing fee

charge for the services provided by the pharmacy, including overhead expenses, salaries, equipment cost, and a selected profit margin

dispensing fee

charge for the services provided by the pharmacy, including overhead expenses, salaries, equipment cost, and a selected profit margin. Most insurance companies use this method for payment of pharmacy prescriptions.

Expiration date

length of time in which the medication retains optimal potency and stability

discount price

list price x discount % rate

Inventory turnover rate

method for measuring the overall effectiveness of purchasing and inventory control processes, equals total annual inventory purchases divided by cost of inventory on hand.

closed formulary

only certain medications in each pharmacologic class are available health systems with this formulary generally have therapeutic interchange protocols when a physician prescribes a nonformulary medication for a patient, it is automatically interchanged with a therapeutically equivalent formulary medication

New Drug Application (NDA)

process by which new drugs are proposed to the Food and Drug Administration (FDA) for approval to market and sell in the United States

drugs protected from humidity. water reduces stability and degrade efficacy.

sterile powders for injections and powders reconstitution

Phase IV trial

thousands of people >1 yr studies long-term effectiveness, safety, and cost effectiveness