Common use of INVENTORY SYSTEM Clause in Contracts

INVENTORY SYSTEM. The Pharmacy shall place 340B Drugs in a location designated for only 340B Drugs of Covered Entity separate from any other inventory of Pharmacy, until Pharmacy dispenses such 340B Drugs to a Covered Entity Patient. Pharmacy shall take all measurers necessary to avoid diversion of 340B Drugs. The parties expressly agree that the inventory system is not a replenishment inventory system. Ordering. Covered Entity shall arrange for Pharmacy to place orders for 340B Drugs on Covered Entity’s behalf. The method of ordering from a 340B Drugs supplier/wholesaler shall be on-demand for each Covered Entity Patient; such that, Pharmacy shall only order 340B Drugs when Pharmacy has received a valid prescription for a Covered Entity Patient, and only in such quantities as necessary to fill the prescription of the Covered Entity Patient. Pharmacy shall take reasonable efforts not to order more 340B Drugs than necessary to complete each order for each patient.