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First-In-First-Out

(FIFO)

What is FIFO?

  • FIFO is a method used when stocking new inventory.

  • When using the FIFO method of stocking inventory you organize the product so that the products you have ordered at an earlier date sell earlier. This is accomplished by putting new products at the back of a display.

  • FIFO contrasts LIFO (Last In First Out) where new products are placed at the front of the display and older products end up in the back.

Who need to practice FIFO in the pharmacy?

  • In many settings, the only staff concerned with this matter of inventory management are the merchandisers tasked with stocking the products on display.

  • In the pharmacy, all members of the pharmacy need to keep FIFO in mind. This is because when dispensing medication the open containers need to go at the front and expiration dates need to be kept in mind. Products with the nearest expiration date must be sold first (provided it will not expire during the customer's usage).

Why FIFO is important

  • Proper inventory management involves minimizing shrinkage. By using the FIFO method, the amount of product lost to expiration can be reduced.
  • By reducing the amount of inventory lost to expiration and shrinkage, we can help maximize the profit of the pharmacy and also increase customer satisifaction by ensuring we have the product they need.
  • This is preferred to a scenario where we give the customer a month's worth of prescription from a bottle that expires in nine months while two unopened bottles sit behind it that expire in three months.

Sidenote

The FIFO and LIFO methods can also impact the listed value of your inventory but this is less relevant to pharmacy staff and more relevant to the store manager and accountants.

Sidenote

Work Cited

Atlas, M., & Faris, A. (2013). Introduction to Inventory Management for Pharmacy Technicians. Canada: Pharmacy Tech Consultants Ltd.

McKesson Canada. (2017). Advanced Inventory Control (FIFO). Retrieved from: https://www.pharmacytechnologysolutions.ca/inventory-control

Peterson, A.M., Kelly, W.M. (2004). Managing Pharmacy Practice: Principles, Strategies, and Systems, 178-179, Preview. Retrieved from https://books.google.ca/books?id=kAWoTOxdL9kC&pg=PA178&lpg=PA178&dq=fifo+pharmacy&source=bl&ots=3xYCWt8--z&sig=kWA2lXbJoAhkkwtTUplwDQEqYHk&hl=en&sa=X&ved=0ahUKEwj848jP5c3XAhWp24MKHambC3M4ChDoAQglMAA#v=onepage&q=fifo&f=false

Assignment Information

Assignment Information

Assignment #3: Group Presentation

ACCG19725 Pharmacy Management and Inventory Control

Topic: First-In-First-Out(FIFO)

Group: Alex St-Louis

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