PP 51

DRUG STORE MANAGEMENT AND INVENTORY CONTROL Efficient management and
inventory control can help ensure that medications are readily availablefor patients while
minimizing waste, reducing costs, and ensuring compliance with regulatory requirements.
Steps: 1. Establish a system for inventory management 2.Moniter stock levels 3.Implement
a first in and first out system (FIFO) 4.Use barcoading and automation 5.Training staff
6.Utilize technology 7.Record keeping 8.Ensure compliance with reg. Requirements
ORGANIZATION OF A DRUG STORE is crucial in succesful business.A well-organized
drug store can help to improve efficiency, reduce errors, and enhance the overall customner
experience. Tips: 1.Categorize products 2.Arrange products strategically 3.Label products
clearly 4.Keep inventory organised 5.Maintain clean and organized store 6.Train staff
TYPES OF MATERIALS STOCKED IN DRUG STORE AND STORAGE CONDITIONS:
Medications: Prescription drugs,otc, supplements Medical Supplies: Bandages, first-aid
kits, syringes, and diabetic supplies. Personal Care Products: Skincare, haircare, and
hygiene products. Health and Wellness Products: Vitamins, minerals, and herbal
supplements. Baby Care Items:diapers, and baby medications. Home Health Equipment:
Blood pressure monitors, thermometers. Miscellaneous Items: Snacks, beverages etc .
PURCHASE AND INVENTORY CONTROL nsure that the store has the necessary products
to meet the needs of its customers while minimizing waste and ensuring that inventory levels
are optimized. Principles: 1. Maintain adequate inventory levels 2. Monitor inventory levels
3. Optimize ordering processes 4. Minimize waste 5.Improve profitability
PURCHASE PROCEDURE: 1. Identify needs 2. Research suppliers 3. Place orders 4.
Receive products 5. Record keeping
PURCHASE ORDER: is a document that is used to request purchase of products from a
supplier. The purchase order includes info- type& quantity, price, and the delivery date.
PROCUREMENT: is process of acquiring goods or services from external sources. In drug
store, procurement involves purchase of products from suppliers to stock store.
STOCKING: invotves receiving and storing products, as well as restocking shelves as
needed. It is imp to ensure products stored correctly to maintain their quality& effectivenes.
ECONOMIC ORDER QUANTITY (EOQ) is a concept used in inventory management that
aims to determine the optimal order quantity for a product, taking into account the costs
associated with ordering and holding inventory. The goal is to find quantity thatminimizes the
total COst of inventory management while ensuring that the store has enough Inventory to
meet customer demand. The formula for EOQ is: EOQ = √( (2DS) / (H)) . here: D= Annual
denand S Cost of placing an order H = Cost of holding one unit of inventory for one year
REORDER QUANTITY LEVEL (ROL) is a level of inventory that triggers the initiation of a
new purchase order to replenish stock. The ROL is typically set as a minimum inventory
level that the store needs to maintain in order to meet customer demand without running out
of stock. When the inventory level reaches the ROL, a new purchase order is generated to
replenish the stock. To calculate the ROL, the following formula can be used: ROL =
(Average Daily Demand x Lead Time)+ Safety Stock Where: Average Daily Demand: The
average number of units of a product that the store sells per day. Lead Time: The time it
takes to receive a new order once it has been placed. Safety Stock: The additional inventory
that store holds as a buffer in case of unexpected increases in demand or delays in delivery.
METHODS USED FOR THE ANALYSIS OF THE DRUG EXPENDITURE: several methods
,depending on the specific needs and goals of the drug store or organization. commonly
used methods: 1. Cost per unit: This method involves calculating cost per unit of each drug
in inventory 2. ABC analysis: 3 catogiers A, B, C. TheCategory A drugs are high value items
with high usage, category B drugs are moderate value items with moderate usage, and

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DRUG STORE MANAGEMENT AND INVENTORY CONTROL Efficient management and

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