QUESTION 1

Case Study- Pharmaceutical Products

One of the pillars of welfare state in Mauritius is free healthcare service for all Mauritians. To meet the objectives of free healthcare, the Ministry of Health & Quality of Life, has the responsibility, among many others, to procure, store and distribute pharmaceutical products for the benefits of in-patients as well as out-patients receiving treatment at the various hospitals and health centres

Obtaining pharmaceutical products from the right source, in the right quantity, at the right time and at the least possible cost poses daunting challenges to staffs who are involved in procurement, storage and inventory management functions. The major constraints usually faced in this regard may be summarized as follows-

• Working out the Ministry's annual requirements

• Limited funds but unlimited needs

• The wide range of items required, including life saving medicines

• Placing orders, receiving consignments and effecting relevant payments within a financial year

• Most of the supplies have to be procured from overseas sources all across the five continents

• Shelf life of products

• Limited storage space

Everyone in the Ministry agrees that one way of addressing these challenges is to have a sound inventory policy in place.

(a) In your opinion, what type of inventory policy would be most suitable with regard to pharmaceutical products for public sector healthcare institutions in Mauritius?

(b) Enumerate and explain five main factors that are likely to influence the inventory policy

(c) Suggest and elaborate two measures which you think would ensure a lean approach in the supply chain of pharmaceutical products in the hospitals and health centres

QUESTION 2

Distinguish between dependent and independent demand, illustrating your answers with appropriate examples, and indicate one inventory management technique, with explanation, for each class of demand

QUESTION 3

The cost of acquiring stock and holding stock in a warehouse drains the organization's resources

(a) Explain the meaning of these two costs

(b) Under each of the two headings (i.e. cost of acquiring and cost of holding stock), list two elements of cost and suggest a measure to control each of these elements of cost

QUESTION 4

(a) Using detailed examples, identify three measures that are likely to promote security or prevent thefts in warehouses

(b) Health and safety issues at workplaces are regulated under the Health and Safety Act (2005)

List five health or safety measures which need to be put in place to protect workers involved in storage, movement and distribution of supplies

QUESTION 5

Write short notes on-

(a) Standardization of stock items

(b) Internal customers in organizations

(c) Distribution resource planning (DRP)

(d) Electronic data interchange (EDI)

(e) Stocktaking