Pharmacy Knowledge Base

Pharmacy Inventory Glossary

Plain-English definitions of the key terms used in pharmacy inventory management — from FIFO to cold chain to perpetual inventory.

Perpetual Inventory System

A method of tracking inventory that updates stock levels continuously after every transaction.

First In, First Out — dispensing the oldest stock first to minimise expiry waste.

The process of tracking medicine expiry dates and acting before products become unusable.

A unique identifier assigned to a batch of medicines produced at the same time under the same conditions.

A physical count of all medicines in a pharmacy to verify quantities match the system records.

A correction to stock levels to account for damage, theft, counting errors, or other discrepancies.

The process of maintaining a temperature-controlled supply chain for medicines that require refrigeration.

The systematic management of medicine stock to maintain optimal levels and minimise waste and losses.

The stock level at which a new order should be placed to avoid running out before the next delivery arrives.

The movement of medicines from one pharmacy location to another within the same organisation.

A method of categorising medicines by value and usage to prioritise inventory management effort.

A chronological record of all actions taken in a system, showing who did what and when.

A medicine that is regulated by law due to its potential for abuse, addiction, or misuse.

The end-to-end management of medicine flow from manufacturer to patient.

The master record of all financial transactions in an organisation.