Question

When would a chain pharmacy utilize just-in-time purchasing from a local wholesaler versus the chain's own warehouse?

a) During a promotional sale
b) During a shortage of medications
c) To maintain regular inventory
d) To reduce transportation costs

Answer 1

Chain pharmacies would utilize just-in-time purchasing from local wholesalers during promotional sales, shortages of medications, and to reduce transportation costs.

Step-by-step explanation:

A chain pharmacy would utilize just-in-time purchasing from a local wholesaler versus the chain's own warehouse in the following situations:

1. During a promotional sale: If the chain pharmacy is running a promotion and anticipates a surge in demand for certain medications, they may opt for just-in-time purchasing to quickly replenish their inventory from a local wholesaler.
2. During a shortage of medications: If the chain pharmacy experiences a shortage of medications in their own warehouse, they may rely on just-in-time purchasing from a local wholesaler to meet immediate customer needs.
3. To reduce transportation costs: If the chain pharmacy can source medications from a local wholesaler that is geographically closer to their store, they may choose just-in-time purchasing to minimize transportation costs.