Purchasing and Inventory Management

About the Author Dr. West is an Associate Professor at the University of Arkansas for Medical Sciences College of Pharmacy. She received a B.S. in pharmacy and a Ph.D. in pharmacy administration from the University of Mississippi. She coordinates the community pharmacy management course and teaches pharmaceutical policy in the health care system. Dr. West serves as a pharmacy consultant for the Arkansas Foundation for Medical Care and the Arkansas State Employee Insurance Group and is the faculty liaison for the National Community Pharmacists Association student chapter. Her research interests pertain to understanding provider and patient behavior to improve medication use and advance community practice. 

After completing this chapter, students should be able to 

Explain the importance, both financially and operationally, of purchasing and inventory management to a pharmacy. 

List purchasing objectives and inventory management objectives for a pharmacy. 

Calculate inventory turnover rates and use this information to make purchasing and inventory control decisions. 

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What technology do they offer to help with purchasing and inventory management ... 

Describe how you think technology in the future will facilitate purchasing and inventory management in a pharmacy. 

Allen SJ. Purchasing and inventory management. In Brown TR, Ed., Handbook of Institutional Pharmacy Practice. Bethesda, MD American Society of Health-System Pharmacists, 1992, pp. 73-79. 

Allen SJ. Purchasing and inventory management. In Handbook of Institutional Pharmaq/ Practice, 3rd ed., Brown, T, Ed. ASHP, Bethesda, MD, 1992, chap. 9. 

I felt that a get-well-quick plan was in order. This plan needed to focus on two main things. The first was buyer education about the basic activities of purchasing and inventory management and an understanding about what composed a JWD (job-well-done). The second was the need for education for each buyer on measuring his or her own job effectiveness and the appropriate steps necessary to make improvements. 

Parts of this section are excerpted with permission from West DS. Purchasing and inventory control. In Jackson R (ed), Ejfective Pharmacy Management CD-ROM, 9th ed. Alexandria, YA National Community Pharmacists Association Foundation, 2003, Sec. 17. 

Huffman DC. 1996. Purchasing and inventory control. In Effective Pharmacy Management, 8th ed., p. 355. Alexandria, VA National Association of Retail Druggists. 

Bickett WJ, Gagnon JR Purchasing and inventory control for hospital pharmacies. Top. Hasp. Pharm. Manage. 1987 7 59-74. 

Tootelian DH, Gaedeke RM. Purchasing and inventory control. In Essentials of Pharmacy Managment. St. Louis, MO Mosby, 1993, pp. 3S7-3I7. 

Inventory is probably the largest single investment a pharmacy can make. Regardless of whether the pharmacy is retail, hospital, or another type that serves patients, inventory investment is significant and needs to be managed well consistently. Although there is an inextricable relationship between purchasing and inventory, this chapter deals with inventory control separately. 

Dietary/nutrition applications cater for bed tray management and recording of special diets. Inventory management, purchasing, and recipe management as part of the functionality may typically be included. 

Managing this chain will normally involve dealing directly with purchasing and supply and inventory management. The feedback that flows backwards is essential because it allows the event manager to see how well received the products, supplies and services were, and whether there should be any changes... 

Cost Management Financials and Accounting Manufacturing Processes Order Management Purchasing and Inventory... 

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