Purchasing and Inventory Management

Learning Objectives: After reading this chapter and working through the case, the reader will be able to:1. Generally discuss the pharmaceutical purchasing process 2. Differentiate between prime and secondary vendors 3. Explain three discount strategies employed by wholesalers 4. Explain inventory costs such as procurement cost, carrying cost, and oppor-tunity cost 5. Calculate inventory turnover rates, calculate economic order quantities, anddetermine reorder points for pharmaceuticals 6. Describe three methods for valuing inventoryPurchasing ... 252 Sources of Pharmaceuticals... 252 Prime and Secondary Vendors ...254Role of Group Purchasing Organizations ... 255 Pharmaceutical Purchasing Process ... 255