4. Cycle view of supply ch
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Patient
Pharmacy
Distributor
Manufacturing
Supplier
5. Push Vs Pull
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Push Model:
Pull Model:
6. Five Supply Chain Drivers
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7. Five Supply Chain Drivers in
Pharmacy
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Production
•manufacturing
•supplier
Inventory
•Row material
•Finish product
Location
•inventories
Transportation
•From
inventories to
pharmacy
Infarmation
•Patient
•Demand
8. Responsiveness Vs Efficiency
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What should you use in pharmacy
Responsiveness OR Efficiency?
9. Designing Distribution
Networks
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Manufacturing ManufacturingManufacturing
Distributor Distributor
Pharmacy
PatientPatient PatientPatient
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Product flow
Information flow
11. Outline
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Elements of InventoryManagement
Inventory and Supply Chain Management
Inventory Control Systems
Economic Order Quantity Models
Reorder Point
Classification of Inventories: ABC, VED
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13. Types ofInventories
Raw materials
Purchased parts and supplies
Finished Goods
Work-in-process (partially completed products )
Items being transported
Tools and equipment
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14. Nature of Inventories
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Raw Materials – Basic inputs
that are converted into
finished product through the
manufacturing process.
15. Finished Goods – Completely
manufactured products
ready for sale. Nature of Inventories
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16. Inventory and Supply
Chain Management
• Bullwhip effect: i) demand information
is distorted as it moves away from the
end-use customer(forecast). ii) higher
safety stock inventories are stored to
compensate.
• Seasonal or cyclical demand: for an
example antiulcer drugs in Ramadan
• Take advantage of price discounts
• WIP inventories: goods in process, or in-
process inventory are a company's
partially finished goods waiting for
completion and eventual sale or the value
of theseitems.
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17. Inventory Costs
• Carrying cost: cost of holding an item in
inventory.
• Ordering cost: cost of replenishing
inventory.
• Shortage cost: temporary or permanent loss of
sales when demand cannot be met.
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