Master Pharmacy Inventory Management: Quizzes and Study Guide

Question 1

Which fundamental objective of inventory management in pharmacy practice aims to mitigate medication shortages?

Accepted Answer

Minimizing stockouts

Answer

Maximizing profits

Answer

Ensuring patient safety

Answer

Reducing waste

Question 2

Which factor is not relevant to determining the appropriate safety stock level?

Accepted Answer

Insurance costs

Answer

Lead time

Answer

Demand variability

Answer

Storage capacity

Question 3

The practice of organizing stock into smaller, manageable units is known as:

Accepted Answer

Binning

Answer

Kanban

Answer

Cycle counting

Answer

ABC analysis

Question 4

FIFO (First-In, First-Out) inventory management is favored in pharmacies because it:

Accepted Answer

Minimizes the risk of expired or obsolete stock

Answer

Prioritizes the use of older stock

Answer

Simplifies stock tracking

Answer

Maximizes profits

Question 5

Cycle counting, a stock management technique, involves:

Accepted Answer

Regular physical verification of stock levels

Answer

Using technology to track stock levels

Answer

Applying statistical methods to predict demand

Answer

Implementing a perpetual inventory system

Question 6

Which inventory management method classifies stock items based on their value and consumption rate?

Accepted Answer

ABC analysis

Answer

VED analysis

Answer

SDE analysis

Answer

FDC analysis

Question 7

How can poor inventory management negatively impact patient care in a pharmacy?

Accepted Answer

Increased risk of medication shortages, delaying or preventing treatment.

Accepted Answer

Higher chance of dispensing errors due to incorrect or incomplete medication supply.

Accepted Answer

Lower patient satisfaction and trust in the pharmacy's ability to provide medication.

Answer

Improved financial performance for the pharmacy.

Question 8

How do strong vendor relationships benefit pharmacy procurement?

Accepted Answer

They improve communication and coordination, streamlining processes.

Accepted Answer

They reduce the risk of stockouts and ensure medication availability for patients.

Answer

They eliminate the need for competitive bidding, saving administrative costs.

Answer

They guarantee the lowest possible prices, regardless of market conditions.

Question 9

Which primary objective of inventory management is to balance stock levels with cost efficiency?

Accepted Answer

To optimize inventory levels and minimize costs

Answer

To minimize the need for purchasing

Answer

To ensure the availability of all products at all times

Answer

To maximize the variety of products offered

Question 10

What is the primary purpose of implementing a perpetual inventory system in a pharmacy?

Accepted Answer

To maintain up-to-date records of inventory levels

Answer

To track only high-value items

Answer

To determine the optimal reorder point

Answer

To account for inventory at specific, periodic intervals

Question 11

Which of the following factors should be primarily considered when determining the appropriate reorder point for a pharmacy?

Accepted Answer

Lead time, safety stock, and expected demand

Answer

Product size and weight

Answer

Customer preferences

Answer

Storage space availability

Question 12

What is the primary advantage of utilizing blanket orders in pharmacy inventory management?

Accepted Answer

Reduced processing costs and enhanced supplier relationships

Answer

Increased flexibility in ordering

Answer

Lower unit prices

Question 13

What is the primary role of the first-in, first-out (FIFO) inventory valuation method in pharmacy inventory management?

Accepted Answer

Ensuring that older stock is used before newer stock

Answer

Minimizing the risk of stockouts

Answer

Reducing storage costs

Question 14

Which of the following is a potential negative consequence of overstocking in a pharmacy?

Accepted Answer

Increased storage costs and lower stock turnover

Answer

Improved patient care

Answer

Reduced risk of stockouts

Answer

Enhanced reputation

Question 15

What is the primary purpose of maintaining a safety stock in a pharmacy?

Accepted Answer

To act as a buffer against unexpected fluctuations in demand

Answer

To increase inventory turnover

Answer

To reduce the need for reordering

Question 16

Which inventory management technique involves categorizing inventory items based on their value and demand?

Accepted Answer

ABC analysis

Answer

VED analysis

Answer

XYZ analysis

Answer

SDE analysis

Question 17

What is the primary responsibility of a pharmacy inventory manager?

Accepted Answer

To maintain optimal inventory levels and monitor stock movement

Answer

To provide customer service

Answer

To negotiate contracts with suppliers

Question 18

Which principle of pharmacy inventory management aims to balance stock levels between minimizing waste and ensuring patient care?

Accepted Answer

Optimizing stock levels

Answer

Maximizing stock levels

Answer

Minimizing stock levels

Answer

Storing all inventory in one location

Question 19

Which inventory valuation method assigns the cost of the earliest purchased items to the goods sold?

Accepted Answer

First-in, first-out (FIFO)

Answer

Last-in, first-out (LIFO)

Answer

Lower of cost or market

Answer

Weighted average

Question 20

What is the main purpose of maintaining a safety stock level in inventory management?

Accepted Answer

To mitigate potential stockouts due to unexpected changes in demand or supply

Answer

To reduce the risk of product damage

Answer

To minimize storage costs

Question 21

The primary reason for conducting a physical inventory in a pharmacy is to:

Accepted Answer

Verify the accuracy of inventory records and identify discrepancies

Answer

Determine the value of inventory for financial reporting purposes

Answer

Estimate future inventory needs

Question 22

When determining the lead time for ordering inventory, which factors should be considered?

Accepted Answer

Supplier delivery time, safety stock level, and expected demand

Answer

Only supplier delivery time

Answer

Only expected demand

Answer

Only safety stock level

Question 23

What is the primary responsibility of the pharmacist in relation to inventory management?

Accepted Answer

To ensure the accuracy, regulatory compliance, and efficient use of inventory resources

Answer

To independently manage all aspects of inventory

Answer

To delegate all inventory management tasks to pharmacy staff

Question 24

Which inventory management technique involves categorizing inventory items based on their usage and value?

Accepted Answer

ABC analysis

Answer

SWOT analysis

Answer

BCG matrix

Answer

PEST analysis