PTCB Supply Chain flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Purchase order

A buyer-issued document specifying item, quantity, and agreed price that authorizes a supplier to ship; it is the reference document for receiving and for matching the invoice.

Three-way match

A payment control comparing the purchase order, the receiving document, and the supplier invoice; quantities and prices must agree before the invoice is approved for payment.

Group purchasing organization

An entity that pools purchasing volume from many member pharmacies to negotiate discounted contract prices with manufacturers and wholesalers.

Prime vendor agreement

A contract naming one wholesaler as the pharmacy's main source of supply, typically with negotiated pricing, defined delivery schedules, and specified service levels.

DEA Form 222

The order form used to purchase Schedule II controlled substances; it allows up to 10 line items, permits no alterations, and has an electronic equivalent called CSOS.

DEA power of attorney

A document by which a registrant authorizes named employees to sign Schedule II order forms on its behalf; it must be kept with the executed order records.

Reorder point

The inventory level that triggers a new order, calculated as average daily usage multiplied by lead time in days, plus a safety stock cushion.

Backorder

Product a supplier cannot ship immediately but will fill later from incoming stock; the item stays on order and is tracked as on-order inventory.

Controlled room temperature

The USP storage designation of 20 to 25 degrees Celsius (68 to 77 degrees Fahrenheit), with brief excursions between 15 and 30 degrees Celsius permitted if the label allows.

Refrigerated storage

Storage at 2 to 8 degrees Celsius (36 to 46 degrees Fahrenheit); products are kept in a monitored refrigerator, not in a freezer and not on a door shelf.

FEFO rotation

First Expired, First Out: stock is arranged and picked so the product with the earliest expiration date leaves the shelf first, reducing waste from expiration.

Perpetual inventory

A running record of on-hand quantity updated with every receipt, dispensing, and return transaction, so the balance is known at any moment.

Cycle counting

Counting a defined subset of inventory items on a rotating schedule instead of counting everything at once, so discrepancies are found and corrected continuously.

ABC analysis

A ranking of inventory by annual dollar usage; A items are the small share of products accounting for most of the spending and receive the closest monitoring.

Inventory turnover

Cost of goods sold divided by average inventory value; a low or falling ratio indicates excess stock, slow movers, or over-ordering.

High-alert medications

Drugs carrying a heightened risk of harmful error, such as anticoagulants and concentrated electrolytes, stored separately with distinctive labels and independent verification checks.

Receiving inspection

Checking a delivery against the purchase order for item, quantity, expiration date, package integrity, and required shipping temperature before signing and dating the receipt document.

Discrepancy report

Documentation of a shortage, overage, damage, or wrong item found at delivery; the notation is made on the delivery receipt and the supplier is notified within its claim window.

Class I recall

A recall in which there is a reasonable probability that use of the product will cause serious adverse health consequences or death, requiring immediate action and patient notification.

Class II recall

A recall in which the product may cause temporary or medically reversible harm, or the chance of serious harm is remote; the product is retrieved and quarantined.

Quarantine area

A physically separate, clearly labeled location where expired, damaged, recalled, or suspect products are held pending return, destruction, or further investigation.

Reverse distributor

A DEA-registered business that receives expired, damaged, or recalled controlled substances from pharmacies and arranges their lawful return or destruction with proper documentation.

DEA Form 41

The record documenting destruction of controlled substances, listing drug, strength, and quantity plus signatures of the person destroying the drugs and an authorized witness.

Saleable return

A returned prescription drug that a wholesaler may resell only after verifying the product identifier under DSCSA requirements; otherwise it is treated as non-saleable.

DSCSA

The Drug Supply Chain Security Act, a federal law requiring an interoperable electronic system to identify and trace prescription drugs at the package level through the distribution chain.

Transaction information

The DSCSA record identifying the product, quantity, and lot, plus the names, addresses, and license numbers of the seller and purchaser for each transfer.

Product identifier

The DSCSA-required package marking containing the NDC, serial number, lot number, and expiration date in both human-readable and machine-readable 2D data matrix form.

DSCSA record retention

Transaction information, transaction history, and transaction statements must be kept for six years and produced within 24 hours of a request by FDA or a state authority.

DEA record retention

Controlled substance records, including invoices, order forms, inventories, and destruction records, must be kept for two years and be readily retrievable for inspection.

Biennial inventory

A controlled substance inventory taken every two years: exact count for Schedule II and estimated count for Schedules III through V, with exact counts for containers over 1,000 units.

DEA Form 106

The report of theft or significant loss of controlled substances, filed in writing with the DEA field office within one business day of discovering the loss.

Readily retrievable records

Records kept separately from all other records or marked so they can be produced during a DEA inspection without a prolonged search.