Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Introduction
The small scale business grows fast and their impacts on the economy are
becoming bigger. How to manage the inventory effectively and efficiently often is a
which lead firms to make decisions so that overstock or stock-outs could not occur.
inventory control focuses on using the inventory most effectively to keep costs down.
reordering and efficient product receiving and storage. Inventory control focuses on
these three things: cutting purchases of slow-moving products, keeping up with changes
inventory.
business’ sucess. They feed off each other and help each other succeed. If a company
has a set of strong inventory management and inventory control, it can quickly get the
products they need to the locations they need them at and then sell them in a timely
manner.
An effective planning and control of inventories is fundamental if distributors are
guide planners and purchasers in determining what items to be ordered, when orders
should be released and the order quantity. An inventory created out of economical
reason could act as a buffer and gives company time to replenish. Inventories which are
stocked too long could age and this will cost the company financially and operationally
seen as the practical side of inventory management because it focuses on the time
element.
health is involved. Anyone with pharmacy technician training can appreciate the
importance of having enough medical stock in both retail and hospital pharmacies at all
times in order to be able to successfully fill the prescriptions that customers may need
immediately. Successfully dispensing prescriptions may seem like a simple task, but if
customer demand at the lowest cost, while keeping a lot of factors in mind, including
seasonal variation, changing patterns in usage as well as theft prevention. There are
some goals to keep in mind in controlling inventory; minimize inventory investment,
demand, minimize costs and lastly manage and maintain a current inventory control
principles presented here are in many respects applicable to all procurement settings
and for most types of procurement situations, their primary target is pharmaceutical
procurement for public sector health systems. It is recognized that public sector
because of conflicting priorities. Keeping a wide variety of stock while also maintaining a
large supply that moves quickly, increasing inventory turnover without affecting service,
maintaining minimal stock without affecting service, making larger purchases to get
lower prices without overstocking on inventory that doesn’t sell and lastly maintain a
large inventory without getting stuck with expired or dated products. While controlling
dedication.
The inventory control practices aims to describe and evaluate the nature of
inventory control as it exists at the study and to compare their method to the standard
inventory control system. It will analyze and interpret the data gathered also identify
some factors that may affect the inventory control practices of a Selected Pharmacies
performance.
The term inventory refers to the goods or materials used by a firm for the purpose
of the production and sale. The focus of the study is the inventory control practices of
All essential drugs needed for health care should be available at all times, at all
the health facilities, so that the Pharmacies should be aware of what type of Inventory
Control that they will need to be used to provide and maintain a quality product for their
customer.
Inventory costs generally fall into ordering costs and holding costs. Ordering, or
acquisition, costs come about regardless of the actual value of the goods. These costs
include the salaries of those purchasing the product, costs of expediting the inventory,
and so on. This study was conducted to seek information about the most common
methods of inventory control techniques being used by the pharmacies in first district of
mechanism that helps business manages their inventory, which may get overloaded
due to improper forecasts. Businesses greatly manage their inventory on the basis of
Drugs & Medicines, that are being expensive and resource limited, it becomes
very important to improve their supply, increase the use, and minimize the cost through
Based on the reading material prepared by the State Institute of Health & Family
Welfare, (Rajasthan, 2010), there are four areas related to drug management: Rational
use; Affordable price; Sustainable financing and Reliable health and supply systems.
Also it includes the Delhi Model, Drug Procurement System in Tamil Nadu, Andhra
"Delhi Model: The Delhi Society for Promotion of Rational Use of Drugs
(DSPRUD) introduced the centralized drug procurement system with the government
hospitals of Delhi in 1996 with the technical support of the WHO. The objective was to
ensure availability of good quality medicines with these hospitals and to promote
rational drug use. Despite 30-35% of the health budget of the government was spent on
The system was ruined by mismanagement and corruption. Many of the drugs
procured by the hospitals were rarely needed while the required medicines were almost
perennially in short supply. The new system procures drugs centrally for half a dozen
main and many smaller hospitals run by the Delhi government. Under the initiative, it
was found that only a limited number of basic drugs were actually needed for treatment
in almost 90% of the hospital cases. These were identified and procured centrally for
This study is related because some of the main problems encountered by other
pharmacies are not recording the medical transaction by their employee to make a fraud
similar activities.
Some other aspects of inventory loss aside from theft and mismanagement of
assets are product obsolescence and natural disaster. Thus, these events can affect the
performance of the operation of the business that would result business’ loss or
business’ bankruptcy. Some of the risk is inherent and cannot be eliminated from the
factors affecting firms productivity such as natural disaster like earthquake, flooding and
other water damage such as from a broken pipe or water heater used improperly or
accidently. It can also create inventory loss; however it can be reduced through effective
lack of monitoring, and inaccurate estimation, and inappropriate strategies, method and
techniques poor inventory storage such as when inventory is improperly stored. This
risk is not inherent so that they need to change the poor inventory system to a good
reduce such risk and the business will operate efficient and effective to raise their
comparative Study (2013), safety stocks are the minimum additional inventories which
serves as a safety margin to meet a unanticipated increase in usage resulting from an
The Assessment Paper Issue by the Academy for Excellence in Health Care,
System Pharmacies 2014, the focus are on the hospitals and pharmacies which is
related to the researchers study that the pharmacy has a big contribution to the
hospitals, patients, and other health facilities even if it is operate by a different person.
Also, Chuck Adams, a Director of Lean Six Sigma for Genesis, said "When we
some other satellite pharmacy operations we have, it became pretty apparent that we
were carrying too much inventory and we needed a good methodology to reduce it". It is
management system to control and balance the inventories needed between excess
To determine the service to be provided is to prioritize the service that will have
tangible positive impact and to identify the area where to implement clinical pharmacy
such as right strategies to be implemented and even small business pharmacies can
adopt some strategies but not all because it is applicable only to the big companies.
According to the study entitled Analysis of Inventory of Drug and Pharmacy
Department of a Tertiary Care Hospital 2012, the increase in costs of hospital care,
necessitating the development of financial policies and mechanism. The main health
This study is relative because it endures the right business policy and strategy
and methods of inventory costing to reflect the right net profit of the business in the
financial statement concerning the factors affecting the operations of the business.
common practices in inventory control. Replenishment is divided two types, which are
continuous review and periodic review. Continuous review means placing the order
when the inventory declines to the reorder point (ROP). While periodic review means
placing the order to regular intervals. ROP also used n inventory control to seek suitable
must be used to monitor the level of inventory. It is important to the management when
storage practices, medication counseling not practiced in most dispensing sites, sales of
the Pharmacists in all level of health. If the current situation continues, pharmacists
The study is very important and is also related because it indicated the
importance every business organization that must comply with the standards, rules,
regulations and laws such as Pharmacy Law in Business Pharmacy in the Philippines.
Theoretical Framework
Inventory control contains all activities that consider all consequences, which are
connected with the storage of items. On the first hand, there is the mere technical and
logistical aspect of inventory control, for example the storage layout. On the other hand,
there are general questions, which are related to the total stock of a company. One of
the most important decisions is about the quantity of inventories. Therefore a lot of
mathematical models have been developed, which are summarized under the concept
of Inventory Control.
Figure 1
basic flow and culture of inventories in inventory control that the business organization
The areas of application are all inventories of the retail market. But also the
inventories of industrial purchasing and selling are pliable to the models of inventory
control. Subsequent to the inventory of finished items from industrial selling there is a
multi-echelon inventory control; that is an extension of real inventory control theory. The
1. Several items are managed in one stock; this means that order handling and
2. Demand and delivery time (of the order to the stock) are often stochastic or not
known.
3. Not only the disposal of costs has to be considered, but also non-monetary and
non-quantitative aspects.
Input Process Output
Feedback
Figure 2
The first frame represents the input. It includes the primary data about the profile
of the respondents in terms of age, sex, civil status, educational attainment, and status
of employment and length of service and profile of the business in terms of years of
existence, initial capital, present capital, number of employees and operating hours.
Also included in the framework are perceptions of the respondents on inventory control
The second frame is the process. It includes the assessing, evaluation, analysis
and interpretation of data on the questionnaire, interview and other research materials
The third frame is the output. It includes the information about inventory control
The feedback shows the direct flow of the diagram in which input, process and
Generally, the purpose of the study is to analyze and interpret the data that will be
gathered from the pharmacies about their practices in inventory control. The following
1.1 Age;
1.2 Sex;
1.3 Civil status;
Hypothesis
The researchers tested the hypothesis that there was no significant relationship
Pharmacies in the First District of Rizal when grouped according to personal profile and
business profile.
Significance of the Study
intuitions:
Business Owner (Sole Proprietorship). With this study, the owners will be guided
to manage their inventory properly and it will give them some information to become
Customer. The customer will be benefited from the information in this study about
the status of Pharmacies nearby in their location in which they know about the proper
inventory management system that lead to quality product and services and gain
Future Researchers. With this study, the future researcher can use this as a
basis if they can do same studies about pharmaceutical inventory control and other
similar industry such as drugstore, health facilities, etc., and that it may will serve as a
Students. They will be able to use the information presented for their future
School. This will serve as a reference for Inventory Management System study,
This study was focused on Inventory Control Practices of Pharmacies in the First
District of Rizal. The variables included were the respondents’ profile in terms of age,
sex, civil status, educational attainment, length of service and the business profile of the
The research study aimed to describe and evaluate the nature of inventory
control as it exists at the study and to compare their method to the standard inventory
control system. It analyzed and interpreted the data gathered also identify some factors
that may affect the inventory control practices of a pharmacies. The researchers
decided to conduct this study in selected small scale pharmacies that have similarities
in profile and also find their differences. We decided to choose selected pharmacies
because only those pharmacies approved us, and others found it confidential to be part
of it. Those pharmacies were Farmacia Olga and General Merchandise in 157 Nat’l
Road Bilibiran, Ely Pharmacy in Bilibiran and etc. The respondents of the study were
questionnaire, and other research materials. The research method used by the
Definition of Terms
organization and assigns the cost of each activity with resources to all products and
services according to the actual consumption by each. This model assigns more indirect
tracks the event of the enterprise, supplies data for the manager’s decision, and
organically contributes to the report for the managers, to the financial statements, to
compiling the expense management systems and last but not the least to the controlling
reports.
Carrying cost. Refers to the total cost of holding inventory, this includes
warehousing cost such as rent, utilities and salaries, financial cost such as opportunity
cost, and inventory costs related to perishability, pilferage, shrinkage and insurance.
phenomenon being studied. It does not answer questions about how/when/why the
characteristics occurred.
Economic Order Quantity (EOQ). Is the order quantity that minimizes the total
inventory holding costs and ordering costs. It is one of the oldest classical production
scheduling models.
calculate the value of inventory on hand at the end of an accounting period and the cost
tracking inventory levels, orders, sales and deliveries. Companies use inventory
management software to avoid product overstock and outages. It is a tool for organizing
inventory data that before was generally stored in hard-copy form or in spreadsheets.
Lead time. Is the amount of time from the point at which you determine the need
to order to the point at which the inventory is on hand and available for use.
inventory control system used to manage manufacturing processes. Most MRP systems
Optimum stock level. The amount of inventory which should not be exceeded.
The limit is normally determined after considering storage space of the facilities, how
quickly inventory is sold or used, cost of insurance on inventory, and the risk of
a health profession that links health sciences with chemical sciences and aims to
Procurement. The act of obtaining or buying goods and services. The process
includes preparation and processing of a demand as well as the end receipt approval of
payment.
Reordering Point. Inventory level of an item which signals the need for placement
of a replenishment order, taking into account the consumption of the item during order
lead time and the quantity required for the safety stock. It is also called reorder, reorder
reduce the risk that the item will be out of stock, safety stock act as a buffer stock in
case the sales are greater than planned and or the supplier is unable to deliver the
integrated whole.