QUESTION 3                                                                                                          (14 marks)Forecasting is the process of estimating the expected consumption of pharmaceutical products based on historical consumption, other data or assumptions when data are unavailable, to calculate the quantities of pharmaceutical products needed to meet demand during a particular time frame. Using different procurement methods, forecasts (and supply plans) are turned into purchased products that are delivered to a point of entry.3.1 Explain why accurate forecasting is important. (7)3.2 Describe pooled procurement, highlighting its advantages. (7)

There are no standard metrics displayed on dashboards because they are intended to be tailored to the user’s needs, but operational dashboards typically involve metrics pertaining to inputs, outputs, outcomes, efficiency, and efficiency.

The forecasting step is used to estimate the total commodity requirements and costs for the program based on the information generated from the supply planning step.

An ICER is calculated by dividing the difference in total costs by the difference in the chosen measure of health outcome or effect to provide a ratio of ‘extra cost per extra unit of health effect’ for the more expensive therapy vs the alternative.

The goal of demand planning is to strike a balance between having sufficient inventory levels to meet customer needs without having a surplus.

Humanistic outcomes in pharmacoeconomic analyses include:

Which of the following best represents a direct nonmedical cost? 

 Which of the following best describes direct purchasing?

Key procurement challenges include:

The goals of pharmacovigilance include the following: