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VTHT 1217 Ch 15
Inventory Management
| Question | Answer |
|---|---|
| What makes up good inventory control? | running list of manufacturers/distributors with contacts, organize products, maintain a regular ordering schedule, monitor supplies regularly, maintain a waste log, rotate supply, backorder protocol, and do not stock duplicates |
| What percentage of gross revenue should be tied up in inventory? | 12-15% |
| What is a distributor? | a business that sells products from multiple manufacturers |
| What is a manufacturer? | a business that produces products and sells to a distributor or directly to the Vet |
| How can reps assist inventory manager? | Reps have product knowledge, know your sales history and will give you information on products and sales |
| What are the guidelines for ordering large amounts of products? | must save >40% of the original price and sell entire stock within 6 months |
| What are the pros and cons of keeping a small inventory? | Pros: lowers holding costs, prevents shrinkage Cons: contributes to loss of money and clients and having a supply cushion is best for client satisfaction |
| True or False: Expiration dates are required by the FDA. | True |
| How should expired products be dealt with? | They need to be disposed of properly and cannot be sold, even if unopened. |
| What is capital inventory? | Inventory that stays with the clinic for life (furniture, equipment, etc.) |
| What is the second largest liability in a veterinary practice? | Inventory |
| How do you decrease loss? | travel sheets, appropriate fees, structured inventory system, hold team members accountable |
| capital | the rights (equity) of the owners in a business enterprise |
| central inventory location | a central location within the practice where excess inventory is stored; often a locked location |
| distributor representative | a representative of a company that sells products of larger manufacturing companies |
| inventory | extra merchandise or supplies that the practice keeps on hand to meet the demands of customers |
| inventory turns per year | the number of times an item must be reordered within a stated period. 8-12 turns per year should be a goal of each practice |
| just in time ordering | the process of ordering and receiving product just as its needed, rather than storing excess |
| manufacturer representative | a representive of a large company that produces products for businesses. Manufacturers may have distributors distribute products for them |
| markup | the amount or percentage added to a product or service to cover the cost of the product or service including a percentage of overhead expenses and produce a profit. Most products are marked up 150 - 200% |
| order book | a book that provides distributor and manufacturer information as well as the order history for products purchased |
| reorder point | the inventory level in which additional product is ordered |
| reorder quantity | a set amount of product that is ordered |
| safety data sheet | MSDS; provided by OSHA |
| US FDA | United States Food and Drug Administration |
| Want list | a list developed of needed inventory |
| What minimum percentage should products be marked up to break even? | unit cost + hard cost + soft cost + (profit x sales price) |
| To help reduce soft costs, orders of top producing items should be placed: a. weekly b. semimonthly c. monthly d. as needed | c. montly |
| consolidating inventory reduces profits | false |
| In order to determine the least cost that can be charged to a client, a practice must determine the: a. turnover rate b. break-even cost c. markup d. soft cost | b. break even cost |
Created by:
kcrabtree507
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