Question

1. Which of the following is TRUE about the process of procurement?
A. Only the pharmacist should be involved in the process
B. Defined as the set of steps to obtain goods or services
C. The process involves marketing and sales
D. The set of steps to put away inventory

2. Sourcing includes which of the following activities?
A. Determining ordering quantities
B. Placing orders
C. Considering supplier pricing options
D. Receiving products

3. Which of the following refers to the regular inventory that is needed to fulfill orders?
A. Anticipatory stock
B. Buffer stock
C. Cycle stock
D. Safety stock

4. Which of the following correctly defines economic order quantity (EOQ)?
A. An item's rate of sale
B. Length of time between stock checks
C. Optimal volume and frequency of orders required to satisfy a given level of demand while minimizing the cost per order
D. Decreasing ordering costs with volume discounts

5. Which of the following is offered for the prompt payment of invoices?
A. Quantity discount
B. Cash discount
C. Deferred discount
D. Cumulative quantity discount

6. What does an invoice that states “15/10 ROG, net 30” mean?
A. Deduct 30% if paid within 10 days or pay the entire amount within 15 days
B. Deduct 10% if paid within 15 days or pay the entire amount within 30 days
C. Deduct 25% if paid immediately or the entire amount within 30 days
D. Deduct 15% if paid within 10 days or pay the entire amount within 30 days

7. Which of the following services would a traditional distributor offer?
A. Customer call centers
B. Medication preauthorization
C. Patient counseling
D. Web-based portal solutions

8. Which of the following correctly defines white bagging?
A. Specialty pharmacy ships directly to the provider
B. Patient transports the drug to the provider
C. Specialty pharmacy administers the medication
D. The product is shipped from the manufacturer directly to the patient

9. Which of the following drugs are eligible for 340B pricing?
A. Influenza vaccine
B. An antibiotic administered intravenously to an inpatient
C. Chemotherapy administered to an inpatient
D. A cholesterol-lowering drug for an outpatient

10. Which of the following children would be eligible for the Vaccines for Children (VFC) program?
A. A Medicaid-eligible child
B. A child who has private health insurance
C. A 19-year-old who is of American Indian descent
D. A 20-year-old who has no health insurance

Answer 1

1. B — Defined as the set of steps to obtain goods or services.

2. C — Considering supplier pricing options (sourcing is supplier selection/evaluation).

3. C — Cycle stock (regular inventory used to fulfill normal orders).

4. C — EOQ = optimal order volume/frequency to meet demand while minimizing total ordering/holding costs.

5. B — Cash discount.

6. D — Deduct 15% if paid within 10 days (from receipt of goods), otherwise pay in full within 30 days.

7. A — Customer call centers (traditional distributors provide logistics/order support, not direct patient services).

8. A — White bagging: specialty pharmacy ships the drug directly to the provider for administration.

9. D — A cholesterol-lowering drug for an outpatient (340B applies to outpatient drugs; inpatient drugs are excluded).

10. A — A Medicaid-eligible child (VFC covers Medicaid-eligible, uninsured, American Indian/Alaska Native, and certain underinsured children under 19).