Community Pharmacy and Management Questions and Answers

Answer: C

The system based on the utility of the material is VED analysis.

VED classifies items as Vital, Essential or Desirable according to how critical they are to the work, for example to patient care in a hospital pharmacy. Vital items must never run out, whatever they cost.

ABC analysis classifies items by annual consumption value (cost), not by utility. EOQ analysis works out the economic order quantity that minimises ordering and carrying costs. Perpetual inventory is a method of keeping stock records up to date continuously.

Answer: D

The formula is (M.C. + C.C. + P. M. + P. C.) × (1 + MAPE/100) + E. D.

This is the retail price formula of the Drugs (Prices Control) Order, 1995. The terms are:

• M.C., material cost of the drug (bulk drug and excipients)
• C.C., conversion cost
• P.M., cost of packing material
• P.C., packing charges
• MAPE, maximum allowable post-manufacturing expenses, as a percentage
• E.D., excise duty

The manufacturing costs are added and then marked up by MAPE. The first option leaves out packing material and divides instead of multiplying, the second multiplies conversion cost by packing material, and the third multiplies by 100 and drops MAPE and excise duty.