Logistics Management

In most countries, using pharmaceutical products requires prior evaluation and approval from a governing body, often called the __ (NDRA).

• national drug regulatory authority

A quality system covering the manufacturing and testing of active pharmaceutical ingredients, diagnostics, foods, pharmaceutical products, and medical devices.

• Good Manufacturing Practices

It is a stockkeeping record that contains the same information as the inventory control card. Unlike inventory control cards, it is bound like a book; it is used instead of the individual card format.

• Stores Ledger

This relates to the percentage of demand for a given line item (stock keeping unit, or SKU) that can be met from available inventory.

• Stock Availability

The emergency order point (EOP) must be lower than the min.

• True
• False

It is designed to ensure that the quantities in stock fall within an established range.

• Max-min Inventory Control System

Variable that measures a particular aspect of a program (input, process, output, outcome, impact), usually related to achievement of objectives.

• Indicator

Lists the items and quantity issued to a facility. It also includes a separate column for the quantities received in case any items are lots or damaged en route.

• Issue and Receipt Voucher

It is used to record the quantity of each product dispensed to users.

• Tick Sheet

It is caused by physical stresses, such as crushing or tearing when the products are loaded, off-loaded, or when cartons or inner boxes are stacked.

• Mechanical Damage

The party that transfers goods out of its control and to a named recipient.

• Supplier

It is a reflection not just of delivery performance but also of stock availability and order processing performance.

• Delivery Reliability

Damaged or expired products cannot be put back on the truck for disposal (if this is the procedure for handling these products), taking advantage of space on the truck.

• True
• False

The procurement process is often complex and, frequently, has many regulations and policies.

• True
• False

Implementing a logistics system is a dynamic process that requires ongoing training, monitoring, and evaluation.

• True
• False

After a supply plan has been developed as part of the quantification process, quantities of products must be procured.

• Procurement

Set of resources (e.g., funds, policies, personnel, facilities, supplies, etc.) required to implement a program/activity.

• Inputs

Because stock assessment is measured in terms of __ (a convenient measure because data are often collected monthly at the service delivery point [SDP] level), the AMC more accurately describes the rate of consumption.

• months of stock

Document your assumptions and verify that they are reasonable to increase the system’s likelihood of success.

• True
• False

Using adult learning methods, these materials are designed to teach the staff how to use the SOP manual and job aids; and how to use the corresponding forms to order, monitor, and manage their health commodities.

• Develop Training Materials

Holds information about products in storage.

• Stock Keeping Records

Keep information about products being consumed or used (collect consumption data).

• Consumption Records

Summary reports are usually organized by date—monthly, bimonthly, or quarterly, depending on the reporting cycle.

• True
• False

Quantitative data can often provide a more in-depth view of certain measurements.

• True
• False

It is necessary to ensure that the supplier is meeting its obligations, and that products arrive on time and in good condition.

• Contract Monitoring

__, the second step in the quantification process, uses the data collected during the preparation step to estimate the quantity of each product that will be dispensed or used during each year of the quantification.

• Forecasting

The Logistics System Assessment Tool (LSAT) is one example of a qualitative data collection tool.

• True
• False

Describes the medicines that satisfy the priority health care needs of a population, and are approved for use throughout the country.

• National Essential Medicines List

Periodic comparison of objectives, with accomplishments, to determine how well the objectives were achieved.

• Evaluation

A statement, usually general and abstract, of a desired state toward which a program is directed (usually not measurable).

• Goal

From all facilities that store the commodities, such as hospitals, health centers, and dispensaries.

This includes benchmarks, or points of reference, that can be used later to compare results.

• Measurable

It is more difficult to detect and is usually not obvious during a visual inspection.

• Chemical Damage

When you design a logistics system, you must not collect the right data that are needed to make logistics decisions and you must not get that data to the people making those decisions.

• True
• False

It is the process of counting, by hand, the total number of units of each commodity in your store or health facility, at any given time.

• Physical Inventory

Holds information about products being moved.

• Transaction Records

In a __, the trigger for ordering is the end of the review period for the commodities that

• standard system
• are at the minimum level.

A __ is an agreement entered into by two parties for the execution of a certain activity; for example, a sale and purchase, or provision, of services.

• contract

It is used to solicit offers from a local marketplace.

The purpose of assessing stock status is to determine how long supplies will last.

• True
• False

Measure that is subjective and descriptive, usually based on an individual’s perception or interpretation.

• Qualitative

After an item has been procured and received by the health system or program, it must be transported to the service delivery level where the client will receive the products.

• Storage and Distribution

Specific statement describing the desired accomplishment(s) or results of an intervention or program; how the goal will be achieved (objectives should be measurable and should address existing problems, program weaknesses, and/or client needs [or build on strengths]).

• Objective

The difference between a regular forced-ordering system and a delivery truck system is the way the deliveries are made.

• True
• False

__ include number of services provided, number of service visits at which products are dispensed, tests conducted, episodes of a disease or health condition treated, or number of patients on continuous

• Services Data
• treatment during the last 12-month period (when data is available or can be estimated).

Cold chain products require appropriate storage and distribution throughout the system.

• Temperature Sensitivity

You cannot use consumption data to determine the AMC.

• True
• False

Long-term results or outcomes also obtained at the population level (e.g., changes in total fertility rate [TFR] or in morbidity and mortality).

• Impact

The key steps in quantification are preparation, forecasting, and supply planning.

• True
• False

The availability, support and commitment provided to the customer.

• Service

After you select the techniques, chose the appropriate equipment to carry out these tests and techniques.

• Select Equipment

Because information is recorded by date, inventory control cards or stores ledgers include information about when shipments are received and when issues are made, including the shipment quantity.

• True
• False

__ are data on estimated incidence or prevalence rates of specific diseases, or health conditions, occurring within a defined population group.

• Morbidity Data

One variation of continuous review max-min systems is the two bin system.

• True
• False

This is the level of stock at which actions to replenish inventory should occur under normal conditions.

• Min Stock Level

Purchaser contracts for goods directly with a manufacturer or its representatives.

• Direct Procurement

The last step in the procurement process is to ensure __ and receipt of the goods at the required destination.

• delivery

Keep information about products being moved through the system.

• Transaction Records

A logistics system can only work if well-trained, efficient staff monitor stock levels, place orders, and provide products to clients.

• Organization and Staffing

It is used to compare actual stock on hand for each commodity with the amount recorded on the stock card.

• physical inventory count

Everyone who works in logistics must remember that they select, procure, store, or distribute products to meet customer needs.

• Serving Customers

Receipt voucher are used to record information about the movement of stock from one storage facility to another.

• True
• False

Managing fewer SKUs can enhance the agility, manageability, and efficiency of a supply chain.

• True
• False

It is the process of estimating the total quantities and costs of the products required for a specific health program, for a future period of time.

• Quantification

Purchaser contracts for goods through an intermediary that has or will purchase directly from a manufacturer.

• Indirect Procurement

Informs the storekeeper when to order or issue, how much to order or issue, and how to maintain an appropriate stock level of all products to avoid shortages and over supply.

• Inventory Control System

Routine collection and analysis of measurements or indicators to determine the ongoing progress toward objectives.

• Monitoring

Allocation and management of finances directly affect all parts of the logistics cycle, including the quantities of products that can be procured, the amount of storage space that may be available, the number of vehicles that can be maintained, and the number of staff working in logistics.

• Budget

It is important that you ensure the availability of a well-trained operator for each vehicle, as well as a designated transport manager at every facility that provides transportation services.

• Human resources

In procurement, you cannot focus finances on buying larger quantities of a fewer number of products, potentially resulting in better pricing.

• True
• False

This is the level of stock used between the time new stock is ordered and when it is received and available for use.

• Lead Time Stock Level

It is the length of time from the manufacturing date to the final date a product can be safely used, or the length of time that product can be stored without affecting its usability, safety, purity, or potency.

• Shelf Life

This is the routine interval of time between assessments of stock levels to determine if additional stock is needed.

• Review Period

Set of interventions (e.g., training, supervision, reporting) in which inputs are used to achieve objectives and desired results.

• Process

In a __, the trigger for ordering is when the facility reaches the minimum level.

• continuous review system

__ is important for informing supply chain decisions on product selection, financing, procurement, and delivery.

• Quantification

Holds information about products being consumed or used.

• Consumption Records

Changes in resources (financial, human, capital) that are available to the system can affect a supply chain.

• True
• False

This is the elapsed time from customer order to delivery. Standards should be defined against the customer’s stated requirements.

• Order Cycle Time

Involves adherence to standardized procedures that the public sector uses when there are multiple potential suppliers.

HCW can be hazardous waste (sharps, used gauze, gloves, scalpels, expired drugs, laboratory reagents, etc.).

• True
• False

It is conducted by an intermediate organization; the procurement unit does not interact with the marketplace.

• Indirect Procurement

Individual facts, statistics, and raw numbers.

• Data

Quantification is not a one-time annual exercise; it is a continuous process that requires ongoing monitoring and routine updates.

• True
• False

More and more customers seek just-in-time deliveries of small quantities.

• Order-size constraints

Standardizing laboratory supplies and equipment is critical for supply chain management.

• True
• False

After products have been selected, the required quantity and cost of each product must be determined.

• Quantification

Logistics officers, data managers, monitoring and evaluation staff, clinical staff.

Transport vehicles are an expensive, yet essential, component of health product delivery.

• Fleet management

Over the years, logisticians have developed a model to illustrate the relationship between the activities in a logistics system; they call it the __.

• logistics cycle

You will use the __ step to estimate the total commodity requirements and costs for the program.

• supply planning

If the stock level is at the min, or has fallen below the min, order enough stock to bring the level up to the max.

• True
• False

The inventory control system that you choose for your system will not dictate the volume of commodities that will be stored and distributed through your supply chain.

• True
• False

It is one of the most important determinations for a system designer to calculate; it is the time between when stock is ordered or issued and when it is delivered and available for use.

• Lead Time

Used to record the quantities of a product, usually related to the laboratory, that facility personnel use on a particular date; for example, the number of HIV tests used in the HIV counseling and testing department on a particular day, or the number of vacutainers used in the lab on particular day.

• Daily Usage Log

__ is when the purchaser establishes direct contact with suppliers or their representatives.

• Direct Procurement

__ is the decision making process you follow when you buy products; you usually have many options.

• Procurement

Good product specifications are critical to good procurement and to ensure that the procured products meet all program requirements and quality standards.

• True
• False

It is the process of examining products and their packaging to look for obvious problems with product quality.

• Visual Inspection

The order is filled on the spot, so the facility does not have to hold quantities of stock while waiting for the next delivery.

• True
• False

This process includes moving products from the unloading dock, or receiving area, after they are released for storage; and assigning them to their designated storage area (rack, shelf, floor, etc.).

• Put Away

__ are data on the actual quantities of health commodities.

• Consumption Data

Supervising the staff who work within the logistics system keeps it running smoothly and helps to anticipate needed changes.

• Supervision

Objectives are planned over time to ensure that they can be met and are measured within a specific timeframe.

• Time-bound

__ are data on population characteristics, growth, and trends.

• Demographic Data

Procurement officers, pharmacy or laboratory division of the MOH.

Results obtained at the program level, direct products or deliverables of a program (e.g., number of people trained, M&E materials developed and available for use).

• Outputs

Some health facilities are difficult to access during the rainy season because of the poor road networks that support them. As a result, rainy season deliveries may be in greater quantities and occur less frequently.

• Seasonal Accessibility

It is one of the most powerful elements available to the organisation in its search for competitive advantage and yet it is often the least well managed.

• Customer Service

To ensure that transportation practices are aligned with policy, include the scheduled delivery planning, vehicle allocation, control over fuel consumption, and monitoring of

• Operations management

To fill shipping requests (or picking lists), products must be located, pulled from inventory, and prepared for shipment.

• Picking and Packing

This is the frequency of use for a specific product, at different periods of time.

• Demand Variability

If the number of products you store is large, you may not be able to assess the stock status for each product every month.

• True
• False

A supply chain assessment or evaluation can verify whether program interventions have been completed (or are in progress) and whether they are resulting in progress toward the program’s objectives.

• True
• False

Ensures the physical integrity and safety of products and their packaging, throughout the various storage facilities, until they are dispensed to clients.

• Storage

To calculate the months of stock-on-hand, you first need process of counting, by hand, to know the quality of stock on hand.

• True
• False

Knowledge acquired in any manner; facts and data that have been turned into useful material.

• Information

Converting data into information; should be in a format that is useful for decision making.

Selection of a procurement method will not depend on the types and quantities of products to be procured.

• True
• False

You should consider storage capacity of facilities when determining the max-min stock levels.

This is the additional buffer, cushion, or reserve stock kept on hand to protect against stock outs caused by delayed deliveries, markedly increased demand, or other unexpected events.

• Safety Stock Level

It is the average of the quantities of product dispensed to users or patients in the most recent three months, as appropriate.

• Average Monthly Consumption

Basic information gathered before a program begins; it is used later as a comparison for assessing program impact.

• Baseline

Objectives and indicators must be SMarT (specific, measurable, appropriate, realistic, and time-bound).

• True
• False

One variation of a forced-ordering max-min system is the delivery truck system, sometimes called a __ or bread truck system.

• topping up

Determining payment methods is not an important part of the contracting process.

• True
• False

The amount we have is the same as __.

• stock on hand

The amount we use is the same as __.

• rate of consumption

In collaboration with a wide range of stakeholders, decide which laboratory tests should be provided at each level of the system.

• Set Test Menus

In any health logistics system, health programs must select products.

• Product Selection

Results obtained at the population level following interventions (e.g., improved access and product availability, improved skills).

• Outcomes
• It is the process of counting, by hand, the total number of units of each commodity in your store or health facility, at any given time.

It is the level of stock above which inventory levels should not rise, under normal conditions.

• Max Stock Level

A smaller, more technical group should decide which techniques to use for the selected tasks.

• Decide on Test Techniques

The documentation and initiation of a process for soliciting bids; the specifications for the product/service desired and opening the contract to the bidding process.

• Tender

It is the engine that drives the logistics cycle; without information, the logistics system would not run smoothly.

• Information

__ (HCW) products are generated at health care facilities, laboratories, and research facilities during diagnosis; and during the immunization of humans and animals, medical treatment and research, and the production or testing of biological products.

• Health Care Waste

In a __, the trigger for ordering is the end of the review period.

• forced-ordering system

__ (STGs) are suggested treatment protocols for the most optimal treatment of a specific clinical problem, in a given setting, based on consensus by experts.

• Standard Treatment Guidelines

Qualitative data involves the collection of objective.

• True
• False

To calculate the order or issue quantity, storekeepers must be able to convert established stock levels (max and min stock levels) into the __ of product needed.

• actual quantities

When deciding how many months of stock to use to calculate the average monthly consumption (AMC), you should consider special characteristics for different programs.

• True
• False

A key element of the logistics cycle, is directly linked to serving customers by defining what products are procured and used in the health system and the range of products that a customer can receive.

• Product Selection

For products that are particularly bulky, for example insecticide-treated bed nets, a standard system may not be the most appropriate. These products need higher min and max stock levels, which require more storage space.

• Bulkiness of a Product

Presentation of information to decisionmakers or lower-level personnel, based on information received.