Community Pharmacy
Organization and structure of retail and wholesale drug store, types and design, Legal requirements for establishment and maintenance of a drug store, Dispensing of proprietary products, maintenance of records of retail
and wholesale drug store
Objectives, scope, Organization and structure of retail and wholesale drug store, type and design, dispensing of proprietary products, legal requirements
Community Pharmacy Ravinandan A P 7th Sem.pptxRavinandan A P
Community Pharmacy -
Introduction
Organization and structure of retail and wholesale drug store,
Types and design
Legal requirements for establishment and maintenance of a drug store
Dispensing of proprietary products
Maintenance of records of retail and wholesale drug store.
Community Pharmacy
Organization and structure of retail and wholesale drug store, types and design, Legal requirements for establishment and maintenance of a drug store, Dispensing of proprietary products, maintenance of records of retail
and wholesale drug store
Objectives, scope, Organization and structure of retail and wholesale drug store, type and design, dispensing of proprietary products, legal requirements
Community Pharmacy Ravinandan A P 7th Sem.pptxRavinandan A P
Community Pharmacy -
Introduction
Organization and structure of retail and wholesale drug store,
Types and design
Legal requirements for establishment and maintenance of a drug store
Dispensing of proprietary products
Maintenance of records of retail and wholesale drug store.
Pharmacy Practice
Scope of pharmacy practice
Community Pharmacy
Scope of community pharmacy
Community pharmacy management
Selection of Pharmacy site
Objective
Legal requirements
Drug procurement
Drug storage and inventory control
Pharmacy Practice is the discipline of pharmacy which involves developing the professional roles of pharmacists. Pharmacy Practice offers practicing pharmacists in-depth useful reviews and research trials and surveys of new drugs and novel therapeutic approaches.
1) Layout and Physical Facilities For Medical Store
• Designing a Drug Store
• Location and Layout of the Hospital Pharmacy
• Layout
• Flow charts for Materials and Members
General Flow Chart Out Patients
General Flow Chart In Patients
General Flow Chart for Materials
• Selection of Site Space, Layout & Design For Community Pharmacy
• Plan an Ideal Retail and Whole sale Store
• Legal Requirements
General Licenses
Restricted Licenses
• Physical Facility
Personal and Floor space Requirement including Equipments
2) Staff
• Selection Of Staff
• Compensation
3) Receipt of drugs
• What is a Drug?
• Requisition, Supply and Receipt of Drugs
Drug request
Completing Stores Requisition/ Delivery (issue) Form
• Supply of Drugs from Medical Stores
Store Requisition / Delivery (issue) Form
Receipt of drugs at Dispensary
4) Disposal of Expired Drugs
5) Drug Safety
6) Unit dose dispensing
• What is UDD
• ADVANTAGES
7) Guidelines To Minimize Pilerage of Drugs
8) Hathi Committee Recommendation For Hospital Pharmacy
Chemist and Pharmacies are the most important part of pharmaceutical distribution chain. They sell out medicine and drugs to patients at prescription of registered medical practitioner...
NAPM is a Section 21 Trade Association which was established in 1977. It is a voluntary, non-profit organisation consisting of South African and Generics based Pharmaceutical manufacturers and distributors. NAPM has a diverse membership comprising of 24 companies. Some of the NAPM’s function is to ensure that the sector plays a constructive role in our country’s economic growth, development and transformation and thereby create an environment in which the sector can thrive, expand, be competitive and enhance access of medicines to all of our country’s citizens.
How to start a wholesale pharmacy business in India? - Fossil RemediesFossil Remedies
If you are looking to start a wholesale pharmacy business in India then it is a one of the leading PCD Based Pharma Franchise Companies in India. Here you know the basic requirements to start a wholesale pharmacy business.
Laws are rules of legal binding on all persons in a state or nation.
Ethics is related to attitude and morality.
3 pillars for laws and ethics
The appearance of the premises should reflect the professional character of Pharmacy
In Every Pharmacy there should be Q.P .(RPh)
Drugs and other ingredients should be purchased from reputed source.
A pharmacist should not make any attempt to capture the business of fellow competitor by offering unfair discounts
A pharmacist should not show any such emotion on his face
A Pharmacist is a link between medical professionals and public.
A pharmacist should provide efficient and reasonable comprehensive and pharmaceutical services through the medical store or pharmacy.
Pharmacy Practice
Scope of pharmacy practice
Community Pharmacy
Scope of community pharmacy
Community pharmacy management
Selection of Pharmacy site
Objective
Legal requirements
Drug procurement
Drug storage and inventory control
Pharmacy Practice is the discipline of pharmacy which involves developing the professional roles of pharmacists. Pharmacy Practice offers practicing pharmacists in-depth useful reviews and research trials and surveys of new drugs and novel therapeutic approaches.
1) Layout and Physical Facilities For Medical Store
• Designing a Drug Store
• Location and Layout of the Hospital Pharmacy
• Layout
• Flow charts for Materials and Members
General Flow Chart Out Patients
General Flow Chart In Patients
General Flow Chart for Materials
• Selection of Site Space, Layout & Design For Community Pharmacy
• Plan an Ideal Retail and Whole sale Store
• Legal Requirements
General Licenses
Restricted Licenses
• Physical Facility
Personal and Floor space Requirement including Equipments
2) Staff
• Selection Of Staff
• Compensation
3) Receipt of drugs
• What is a Drug?
• Requisition, Supply and Receipt of Drugs
Drug request
Completing Stores Requisition/ Delivery (issue) Form
• Supply of Drugs from Medical Stores
Store Requisition / Delivery (issue) Form
Receipt of drugs at Dispensary
4) Disposal of Expired Drugs
5) Drug Safety
6) Unit dose dispensing
• What is UDD
• ADVANTAGES
7) Guidelines To Minimize Pilerage of Drugs
8) Hathi Committee Recommendation For Hospital Pharmacy
Chemist and Pharmacies are the most important part of pharmaceutical distribution chain. They sell out medicine and drugs to patients at prescription of registered medical practitioner...
NAPM is a Section 21 Trade Association which was established in 1977. It is a voluntary, non-profit organisation consisting of South African and Generics based Pharmaceutical manufacturers and distributors. NAPM has a diverse membership comprising of 24 companies. Some of the NAPM’s function is to ensure that the sector plays a constructive role in our country’s economic growth, development and transformation and thereby create an environment in which the sector can thrive, expand, be competitive and enhance access of medicines to all of our country’s citizens.
How to start a wholesale pharmacy business in India? - Fossil RemediesFossil Remedies
If you are looking to start a wholesale pharmacy business in India then it is a one of the leading PCD Based Pharma Franchise Companies in India. Here you know the basic requirements to start a wholesale pharmacy business.
Laws are rules of legal binding on all persons in a state or nation.
Ethics is related to attitude and morality.
3 pillars for laws and ethics
The appearance of the premises should reflect the professional character of Pharmacy
In Every Pharmacy there should be Q.P .(RPh)
Drugs and other ingredients should be purchased from reputed source.
A pharmacist should not make any attempt to capture the business of fellow competitor by offering unfair discounts
A pharmacist should not show any such emotion on his face
A Pharmacist is a link between medical professionals and public.
A pharmacist should provide efficient and reasonable comprehensive and pharmaceutical services through the medical store or pharmacy.
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
This is a presentation by Dada Robert in a Your Skill Boost masterclass organised by the Excellence Foundation for South Sudan (EFSS) on Saturday, the 25th and Sunday, the 26th of May 2024.
He discussed the concept of quality improvement, emphasizing its applicability to various aspects of life, including personal, project, and program improvements. He defined quality as doing the right thing at the right time in the right way to achieve the best possible results and discussed the concept of the "gap" between what we know and what we do, and how this gap represents the areas we need to improve. He explained the scientific approach to quality improvement, which involves systematic performance analysis, testing and learning, and implementing change ideas. He also highlighted the importance of client focus and a team approach to quality improvement.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
2. Content
Advantages and disadvantages of rural area
Advantages and disadvantages of urban area
The site for a drug store
Layout of a drug store
Legal aspects of a drug store
A. Documents required to open a retail drug store
B. Documents required for the renewal of retail sale license
C. Documents required to open a wholasale drug store
D. Documents required for the renewal of wholesale license
Importance and objectives of Purchasing
Purchasing procedure
Methods of purchasing
Selection of supplier
Credit information
Tenders and its types
Contracts
Storage
Codification of various items of drug store
Pricing of materials
Legal requirements and price control on bulk drugs formulation
3. Rural Area Urban Area
Advantages Advantages
1. Limited finance
2. Low rate of Interest rate
3. Easily availability if space
4. Greater scope for future expansion
5. Lower wages.
1. Procurement of material is easy
2. Better supply of skilled persons
3. Better sales of goods
4. Buying capacity of customers is more
5. So sale of luxurious goods is also more
6. Better publicity
7. Better health and medical services
8. Better transport and communication facilities
Disadvantages Disadvantages
1. Limited supply of skilled labour
2. Difficulties in procurement of material
3. Buying capacity of people is less
4. Luxury goods like cosmetics are less
5. Proprietor has to arrange large finance
6. Illiteracy is more.
1. Higher rate of land
2. Higher municipal taxes and restrictions on the use of
lands.
3. Higher wages
4. Over crowding & its evils.
Drug store in Rural Area/Small Town and Urban Area/Big cities
4. Site for selection of Drug Store
1. Availability of finance: Availability of finance is the most important factor. Sufficient finance &
meager financial resources mainly affect on opening of drug store.
2. Business locality: It is preferable to open a drug store in a business locality because the number of
people visiting such locality is quite large. Opening of drug store in such locality required huge
investment because of high rent and land price.
3. Thickly populated residential area: Such area is more preferable. Because people may buy
required medicines during their evening walk.
4. Developing area: Nowadays in big cities new localities are coming up very fast. So ideal place is
their. No problem of competition. Drug store will meet the needs of its customers by extending all
types of facilities.
5. Hospital: Hospital and nursing home does not have its own drug store and physicians have a good
practice, then its ideal one for opening of drug store.
5. 6.Flow of traffic :
Avoid locations near traffic signals because shop in the vicinity of traffic signals has to face parking problems
for cars, scooters and cycles etc. Avoid the one way traffic, road circles.
7.Parking:
While selecting the location drug store in a busy shopping center, it must be enough parking space outside
the drug store. In a big cities there are certain restricted areas where parking is not allowed to prevent
obstruction in smooth traffic. Such areas are not ideal.
8.Drug store:
As far as possible there should not be any competitor or already existing near the location of a new drug store.
If sales potential is good even for another store, then one can consider opening a new one.
9.Near to hotel, school, seminar hall:
These locations are not preferable. If the site is near a restaurant it may create problems of maintaining
cleanliness. In case cold drinks or ice creams facilities also extended, then it is preferable to pen a drug store
near a cinema hall because people buy drugs when they visit for a soft drink.
6. In order to establish a new drug store in metropolitan cities following additional factors also to
be considered
1. The site should be well connected with various modes of transport.
2. The site has good surroundings
3. There should not be congestion of traffic
4. The essential services such as, bank, post office and warehouse must be available near the site.
5. The rules and regulations of municipal corporation or any other local authority does not come
in the way of expansion of drug store.
7. Acquisition of premises for a Drug Store
It is desirable, that before the pharmacist occupies a new store premises, he/she should
observe the following precautions:-
1. Note down the date of occupancy.
2. When to pay the instalment of the rent.
3. Repair the premises of drug store properly.
4. Comply with the local rules and bye-laws about opening and closing time of shops, the
weekly closing day of the market etc.
9. Objectives of layout
1. To attract large number of customers
2. To increase sale of drug store
3. To reduce selling expenses to minimum
4. To provide customer satisfaction
5. To create professional image and to improve general image
6. To minimize movements of customers within drug store
7. To provide surveillance in order to reduce chances of pilferage and theft.
8. To have space for reserve stock, office and resting space for the staff.
9.To have proper entrance for incoming goods.
10.To have best utilization of available space.
11.To provide protection to medicines from any type of damage and to
maintain their potency.
10. Legal Aspects of a Drug Store
A. Wholesale drug store
1. Minimum qualification: Must be Registered Pharmacist with the State Pharmacy
Council.
2. The minimum qualification to get registered with state pharmacy council is Diploma
in Pharmacy from a recognized institutions.
3. For starting a wholesale drug store is matriculation with four year experience in
selling of drugs in a chemist shop on salary basis OR
4. Diploma in pharmacy and also being registered as a Registered Pharmacist.
5. A person who have sufficient capital and is interested to start a drug store, can also
do so by appointing a “Registered Pharmacist” on whole time basis.
11. B. Minimum space:
Not specified in D &C Act & Rules 1945.
1. For New retail drug store desirable area is 10 sq. meter.
2. Minimum area required to open a new wholesale drug store is 10 sq. meter.
3. However the minimum desirable area to open a new combined wholesale and retail drug
store is 15 sq. meter.
B. Store arrangements:
There should be sufficient number of racks to store drugs and pharmaceutical preparations
For storage of antibiotics, vitamin products, vaccine, sera, enzymatic preparations and other
preparations which are required to be stored at temperature between 2˚ to 8˚C,a refrigerator
is necessary.
12. B. Retail drug store :A license required to sell, stock or exhibit for sale or distribute
drugs. Following documents are needed for a new license.
Application In duplicate on form 19* of the D& C rules 1945.One copy is for biological drugs
and the other copy for non-biological drugs.
Fee 1500 rupees per license(Total 3000) to be deposited in state bank of
India/Government treasury under specific head for grant of a retail sale license.
Attested
copy
a) Diploma in pharmacy from any institution duly recognized by PCI.
b) Registration certificate issued by state pharmacy council.
c) Matriculation certificate
d)Affidavit from the qualified person in case he is an employee of a drug store.
Affidavit On a non-judicial stamp paper,duly attested by a first class magistrate by each
partner in case of partnership concern and by the proprietor himself in case of
proprietorship concern.
Map Retail drug store duly signed by proprietor/partners of firm.
13. Recent
Receipt
In case of rented premises or an affidivate to that effect if the person limself is
the owner of premises.
A Copy Partnership deed in case of partnership concern.
Purchase
receipt
Refrigerator
PCI is planning to make it mandatory to wear the white coat bearing the name of registered
pharmacist who is running the retail pharmacy.
The license is valid for a period of five years.
It is required to be renewed before its expiry.
14. Documents required for the renewal of retail sale licence
Application In duplicate on form 19* of the D& C rules 1945.One copy is for biological drugs
and the other copy for non-biological drugs.
Fee 1500 rupees per license(Total 3000) to be deposited in state bank of
India/Government treasury on challen form in the specific head for grant of a
retail sale license.
Late fee 5OO Rupees per license per month or part thereof.
Original
License
In case of first renewal and latest renewal certificate in case of subsequent
renewals.
Affidavit Given on a non-judicial stamp paper by a partner if any, duly attested by oath
commissioner.
15. Documents required to open a wholesale drug store(For New License)
Application In duplicate on form 19* of the D& C rules 1945.One copy is for biological drugs
and the other copy for non-biological drugs.
Fee 1500 rupees per license(Total 3000) to be deposited in state bank of
India/Government treasury under specific head for grant of a retail sale license.
Attested
copy
a) Diploma in pharmacy from any institution duly recognized by PCI.
b) Registration certificate issued by state pharmacy council.
c) Matriculation certificate
d)Affidavit from the qualified person in case he is an employee of a drug store.
e)Affidavit of the qualified person if the qualified person is an employee of firm.
Affidavit On a non-judicial stamp paper,duly attested by a first class magistrate by each
partner in case of partnership concern and by the proprietor himself in case of
proprietorship concern.
Blue Print Plan of premises.
16. Recent
Receipt
In case of rented premises or an affidavit to that effect if the person
himself is the owner of premises.
A Copy Partnership deed in case of partnership concern.
Purchase
receipt
Refrigerator
The original license or a renewal license to sell drugs on wholesale basis is valid for Five
years.
It is required to be renewed before its expiry.
17. Documents required for the renewal of wholesale license
Application In duplicate on form 19* of the D& C rules 1945.One copy is for biological drugs
and the other copy for non-biological drugs.
Fee 1500 rupees per license(Total 3000) to be deposited in state bank of
India/Government treasury on challen form in the specific head for grant of a
retail sale license.
Late fee 5OO Rupees per license per month or part thereof.
Original
License
In case of first renewal and latest renewal certificate in case of subsequent
renewals.
Affidavit Given on a non-judicial stamp paper by a partner if any,duly attested by oath
commissioner.
18. The original license or a renewal license to sell drugs is valid upto 31st December of the year
following the year in which it is granted or renewed
Separate license are required for the retail sale of:
1. Schedule C and C1 drugs.
2. Schedule X drugs.
3. All drugs other than those specified in Schedule C and C1 and X.
• In order to get a license to sell, stock or exhibit for sale or distribute by retail drugs specified in
schedule C and C1 an application is filled Form No.21* and Form No.21B* is filled to apply for
license to sell Schedule C and C1,drugs by wholesale.
• The drugs which are covered under schedule X cannot be sold on retail except on the prescription of
a registered medical practitioner.
• Similarly, to get a license to sell, stock or exhibit for sale or distribute drugs by retail other than
those specified in schedule C and C1,an application is required in Form 20 and in Form 20B,if the
license is to sell drugs other than those specified in schedule C and C1 by wholesale.
19. Importance of Purchasing
1. Important function of material management
2. A proper purchase of materials and merchandise and control of stock are of great
importance in any business i.e. manufacturer, wholesale, or retail trade.
3. In trading business, merchandise purchased must be of proper quality at an appropriate
price, in proper quantities and at the proper time.
20. Right
1.Source
2. Quality
3.Quantity
4. Price
5. Time
6. Place
of
Delivery
7. Mode
Transport
ation
Objectives of Purchasing:
Not only to produce the raw material at the lowest price but also to reduce the cost of the final product.
The following points are taken into consideration while purchasing of the material.
21. Purchasing requisition
Selection of the suppliers
Placing the order
Receiving and Checking of Material
Checking of Invoice OR Bill
Releasing the payment to the supplier
Recording of bills in books
Releasing the payment to the supplier
Purchasing
Procedure
22. Selection of suppliers
• In gov. departments, public sector undertaking and large business houses, the supply of all types of
items of daily use are received through the suppliers who are in their approved list
• Prepare approved list of suppliers questionnaire is send to various supplier.
• After receiving these questionnaires, the approved list of suppliers is prepared.
The following points should be generally taken into consideration while preparing approved list.
1. Reputation of the supplier in the market.
2. Financial condition of the supplier
3. Manufacturing capabilities of the supplier
4. Capability of the supplier to supply at a short notice
5. After sales service facilities provided by the supplier
6. Terms and conditions of payment
23. Credit Information
Definition of Credit: Through which the items can be brought or sold without making cash payment.
• Whenever any sale deed is done between buyer and seller, the terms of payment is also finalized in
order to avoid any misunderstanding at the later stage.
• The sale of merchandise is done either on cash payment or on credit.
• In pharmaceutical marketing ,45 days credit facility is provided by many manufacturer to the
wholesalers.
• This facility is not for new wholesaler in initial stage.
• A wholesaler, usually gives 21 days credit facility to its retailers in business.
• Now days a substantial amount of trading involves credit.
• It is advantageous to both buyer and seller.
• When the sale is done on credit, it will certainly increase the sale but it involves the risk of bad debts
and delayed payments.
24. This problem can be avoided by many business organisations have accredit department
which investigates the credit worthiness of each prospective customer.
The following information may be obtained about the buyer before selling the goods on
credit.
1. The character of buyer:
He should be honest, reliable, trustworthy and having reputation for fairness and justice.
1. Financial position of the buyer:
This is done to know the financial position of the buyer, in order to find its capacity to pay
debt etc.
3. Assets and liability of the firm:
The information helps to judge its state of business.
These information can be obtained by going through the financial statements of the firm,
bank reference and salesmans report.
25. Tenders
Definition: A tender or a quotation is a written offer to do a work or to provide a material at a
given price within a prescribed period and under specified condition.
Sr.No. Types of
Tender
Explanation
1 Open tenders: • Used when the value of purchase is high. & when supply sources are not known.
• Open tenders are very expensive.
• These tenders are given in leading newspaper.
• It gives wide publicity & is open to any vendor. The vendor has to deposit an
earnest money with the tender information & tender number.
• The purpose is for fixing & finalizing prices of materials, terms & conditions.
2 Limited tender • The system is used only in those cases where the value of tender is moderate.
• The tenders are invited only from those firms which are on the approved list of
supplier.
Advantages:
1. The suppliers are well conversant with the itmes to be supplied.
2. The suppliers generally submit realistic quotations because the are regular
supplier of those items.
3. These are less chances of any error in supplying the items of required
specifications.
26. 3 Single tender • When the items to be purchased are proprietary in
nature or the order is to be repeated within a short
period.
• The tender is send only to a single supplier who is
dealing with the items of specific specifications.
4 Oral tender • In case the supplies are of minor character and are
urgently required, a person or a committee is deputed to
purchase the specified items from the market.
• After collecting the information regarding the price
charged and quality of product to be supplied from three
to four suppliers.
• The items are purchased from the supplier which has
quoted the minimum price of the specified items.
27. 5 Global
Tender
• The tenders are invited from all parts of the world.
• These are for large contracts for supplies from foreign countries or when foreign
collaboration is required in proposed project
• The notice containing the following information is issued to call the tender:
a) Name and detailed specification of material to be purchased.
b) Quantity to be purchased
c) Period of delivery.
d) Earnest money to be deposited
e) Terms and conditions of purchase
f) Date, time and place for receiving and opening of the tenders.
The tender are sent by supplier in sealed envelope before the due date The word
‘Tender’ or quotation and its date of opening must be written on the top of the
envelope After opening the tender is on due date and time in the presence of the
representatives of the supplier, the purchase officer write on each tender,the serial
number of tender, total number of tenders received and number of page in a particular
tender any correction or over writing is also attested during that period in order to
avoid any dispute at a later stage-a comparative statement is prepared from the tenders
or quotations which are received generally, the order is placed with the firm which
has quoted the lowest rate-The factors like sample specification, make guarantee
period,period of supply,other expenses like freight,sale tax,packing and forwording
charges are also considered.
28. Contracts
Definition: It is also called as purchase order or supply order. After the selection of
supplier. A mutual agreement is done between the supplier and the buyer. This
agreement is called contract.
1. Suppliers name and address.
2. Order number, date and the reference number.
3. The detailed specifications of the items and quantity ordered.
4. Rate and the amount.
5. Mode and date of delivery
6. Packing and forwarding instructions.
7. Mode of payment and the terms of payment
8. Signature of the official authorized to place order.
29. Storage:
The drugs are stored in a drug store must be arranged in such a way that they are easily
traceable as and when required. For this purpose following methods are used
1. According to manufacturers:
The drugs are arranged in a drug store manufacturer wise. For example the drugs manufactured by
Glaxo(India) Ltd. are placed at one place i.e.in one cupboard.
2.According to pharmacological action:
In this method medicines are divided according to their pharmacological actions and drugs of one
group are placed at on placed in one cupboard likewise drugs of other groups are stored.
3.Alphabetically:
In this method drugs are placed alphabetically. The drugs with letter ‘A’ are placed in another
cupboard. Out of above methods, storing of drugs manufacturer wise is most popular and
convenient method.
30. Codification of Various Items of Drug Store
Codification is the process of assigning of code symbol or a number to a particular
material for easy identification.
Advantages of codification
1. Ambiguity in description is avoided.
2. The length in description is minimized.
3. The codes ensures secrecy of items lying in the store.
4. It prevents duplication.
5. It standardizes the purchasing as well as storage.
6. It reduces the varieties.
7. It makes purchasing, recording, accounting, computerizing pricing, costing location,
indexing and inspection efficient and result-producing.
8. It assures planned and quality production.
31. Methods of Codification
1. Alphabetically method/Letter Code Method :
• In this system, letters are choosen to represents particular classification.
• Alphabet consist of 26 letter.
• So each position in the code has 26 possible letters.
• This method is useful when store contains few items.
• e. g. ’T’ represents Tablet, ’C’ represents Capsule.
• This method is simple but if lacks flexibility and expansion.
1. Mnemonic method:
Main disadvantages of this method is that material can not be identified without making reference to
code index. When we use letters to help memory, we call such a system a mnemonic system.
In this method, letters of the alphabet are used to describe an item.
e. g. ’AT’ represents Aspirin tablet, ‘ATP’ represents Aspirin Tablet of Paracetamol
32. 3.Numerical method/Sequence Method: In this method separate number are given to different
classification of store items. This involves use of following method.
1. Decimal system:
• In this system number are given In such a way that each digit represents subgroups of previous gift.
e.g. Code no.16.1,16.11,16.111 are assigned to three different tablets belonging analgesic group i.e.16.1
represents tablet Analgin,16.11 represent tablet Dispirin and 16.111 represent tablet paracetamol.
• Main advantage is its capacity to expand to accommodate new items.
• Disadvantage is being cumbersome in use.
2. Block System:
In this method no. are reserved for specified classification.
e.g.101-300 are reserved for tablet,301-500 are reserved for capsule.
4. Combination method:
In this method both mnemonic & numerical method are combined to give code to different items.
e.g. Code AT 300 represents Aspirin tablet 300mg and AT 301 is allotted to Aspirin tablet 600mg.
33. 5.Location coding method:
• In big organisations there are large number of stores and each store may be quite large in size.
• So the store rooms are divided in blocks.
• Each block is identified by lateral block letter and a longitudinal letter.
• Within each block every row is divided vertically inti two column and horizontally into shelves.
• Each and every shelf is given a particular number.
• The location of item can be identified from warehouse number, block number, row number,
column number, rack number and shelf number etc.
34. Pricing of materials:
The price which is going to be charged from customers can be calculated by using one of the following method.
1. First in first out method (FIFO):In this method ,the material which is received 1st are issued 1st .The issues
are priced at cost price of oldest consignments till it get exhausted. As soon as the oldest lot is exhausted,
the issues are priced at the cost price of the next of oldest lot in the sequence. The closing stock is valued at
cost price of latest consignment.
e.g. April 1
April 5
April 10
2000 unit purchased @ Rs 50 per unit.
500 unit purchased @ Rs 60 per unit.
300 units sold.
The issue of 300 units will be priced as under:
From the first lot 200 units @ Rs 50
Remaining 100 from 2nd lot @ Rs 60
Rs 10,000.00
Rs 6000.00
Rs 16,000.00
==================
The issue of 300 units will be price as under-
From 1st lot 200 unit @ 5 = Rs 1000
Remaining 100 units from 2nd lot @ 6 = Rs.600
Rs 1600
The value of closing stock of 400 units will be closed @ 6 i.e.400×6=2400 Rs
35. 2.Last in first out method (LIFO):
In this method price of latest consignment is used for calculating value of issue until that
consignment is exhausted.
e. g. April 1
April 6
April 10
500 units are purchased @ 5/unit
300 units are purchased @ 6/unit
400 unit sold
The issue of 400 units on April 15,will be priced under:
300 units @ 6 =1800
100 units @ 5=500
2300 Rs
=================
The closing stock of 400 units will be price @ Rs 50 i.e.Rs 2000.
36. 3.Average Cost Method: In this method when new stock of goods is received, the total value of goods in stock.
Divided by total quantity in hand will give average price until new stock is received.
Instead of simple average, where only unit cost is considered, weighted average cost can also be use where
along with unit cost, quantity of units is also considered.
e.g. Following two lots where purchased during April 2005.
1000 units @ Rs 3
5000 units @Rs 5
By simple average cost =5+3/2=4
While the weighed average cost could be as under
The weighted average cost =28000/6000=4.67
Unit Cost Rs Weight Weighted Cost Rs
3 1000 3000
5 5000 25000
Total 6000 28000
37. 4.Replacement price method
• Also known as Market price method.
• In this method the material issues are charged at predetermined price. The standard price is fixed
after careful examination of current market price, trend of price and market conditions etc.
• This price is applicable only for particular period.
• This price include acquisition cost, invoice price and transport charges.
5.Inflated price method:
This method is used for those goods which are subject to some wastage. The total divided by the
quantity expected to be finally available for use and that rate is used for sale of goods.
There are some types of normal wastage during material usage.
e.g. Loss of breaking the bulk, evaporation etc.100 Packets of menthol where purchased at the rate of
Rs.60 per packet.
There is wastage of 10% menthol during its storage.
The total cost of 100 packets @60 per packet =100×60=6000Rs
Material left after wastage = 100-10=90 packets
Therefore, cost per packet =6000/90=66.66 Rs.
38. 6.Standard price method:
In this method,the material issues are priced as actual acquisition cost.
This method is applicable,where purchase are made for specific job and are kept
physically separate in the store room.
39. Legal requirement and price control on bulk drugs and formulations
The retail price is the price fixed by the Government for a new drug under paragraph 5 of Drugs
(Prices Control) Order, 2013. It came into force on 15.05.2013.It regulates price of 348 drugs.The
ceiling price of a scheduled formulation of specified strengths and dosages as specified under the
first schedule shall be calculated as under:
Step1: First the Average Price to Retailer of the scheduled formulation i.e. P(s) shall be calculated
as below: Average Price to Retailer,
(Sum of prices to retailer of all the brands and generic versions of the medicine having
market share more than or equal to one percent of the total market turnover)
P(s) =
(Total number of such brands and generic versions of the medicine having market share more
than or equal to one percent of total market turnover on the basis of moving annual turnover
for that medicine.)
40. Step2. Thereafter, the ceiling price of the scheduled formulation i.e.
P(c) shall be calculated as below:
Where,
P(s) = Average Price to Retailer for the same strength and dosage of the medicine as
calculated in step1 above.
M = % Margin to retailer and its value =16 Margin to retailer: While fixing a ceiling price
of scheduled formulations and retail prices of new drugs, sixteen percent of price to
retailer as a margin to retailer shall be allowed.
P(c) = P(s).(1+M/100)
41. Maximum retail price:
• The maximum retail price of scheduled formulations shall be fixed by the manufacturers on
the basis of ceiling price notified by the Government plus local taxes wherever applicable, as
under:
Maximum Retail Price = Ceiling price + Local Taxes as applicable
• The maximum retail price of a new drug shall be fixed by the manufacturers on the basis of
retail price determined by the Government plus local taxes wherever applicable, as under:
Maximum Retail Price = Retail Price + Local Taxes as applicable
42. Calculation of retail price of formulation
The retail price of a formulation shall be calculated by the Government in accordance with
the following formula namely:
R.P. = (M.C. + C.C. + P.M. + P.C.) x (1 + MAPE/100) + ED.
Where,
"R.P." means retail price;
"M.C." means material cost and includes the cost of drugs and other pharmaceutical aids
used.
"C.C." means conversion cost worked out in accordance with established procedures
"P.M." means cost of the packing material used in the packing of formulation, including
process loss.
"P.C." means packing charges worked out in accordance with established procedures of
costing.
"MAPE" Maximum Allowable Post-manufacturing Expenses
"E.D." means excise duty: Provided that in the case of an imported formulation.