Question

which of the following systems allows pharmacists to review drug use monthly, and shows when it is time to reorder materials?

eoq systems
reorder point systems
perpetual inventory systems
min/max systems

Explanation:

Analyze the question requirements

The question asks to identify the inventory system that allows pharmacists to review drug use monthly and shows when it is time to reorder materials.

Evaluate the options

Using the Reorder Point Systems, Economic Order Quantity, and Perpetual Inventory System knowledge points:

• EOQ (Economic Order Quantity) systems: Focus on determining the optimal order quantity that minimizes total inventory costs (ordering and holding costs), rather than scheduling monthly reviews.
• Reorder point systems: Trigger a reorder when stock falls to a specific predetermined level, which is monitored continuously rather than on a fixed monthly review cycle.
• Perpetual inventory systems: Maintain a continuous, real-time record of inventory balances as transactions occur.
• Min/max systems: A periodic review system where inventory levels are checked at set intervals (such as monthly). If the stock of an item is at or below a designated minimum level, an order is placed to bring the stock back up to the maximum level.

Therefore, the system that aligns with reviewing drug use monthly (periodic review) and determining when to reorder is the min/max system.

Answer:

• (A) EOQ systems
• (B) Reorder point systems
• (C) Perpetual inventory systems
• (D) Min/max systems (Correct answer)