Thesis: Inventory and South Star Drug
Pharmacy Inventory Control System Thesis
CONCLUSION
Inventory management is crucial for most companies, but it is especially crucial for small businesses like South Star Drug Store, because when compared with large companies, they usually have limited resources and bargaining power, which have negative effects on the way the inventory can be managed.
This thesis is trying to propose an enhanced inventory control system for a small organization like South Star Drug Store. Establishing policies and procedures is the major step in starting an inventory control. These policies and procedures must be implemented and the management must see to it that everyone in the organization complies with it. A good inventory system does not need several employees to implement segregation of duties and avoid conflict of interests. Proper documentation and supervision of transactions should be given more focus.
RECOMMENDATIONS
From the information given from the previous chapter, it was observed that there were a limited number of employees in South Star Drug Store. Also, it was observed that these employees have limited knowledge in accounting. The researchers propose a simple yet effective inventory control system to be adopted by the pharmacy.
The researchers recommend the following policies and procedures for the enhancement of pharmacy inventory control system:
Purchasing
ROP system and EOQ model:
The researchers suggest the management to establish ROP for each items classified under the ABC analysis and also the implementation of EOQ model in purchasing inventory. This is to resolve the issue of overstocking and/or understocking of inventory that leads to inventory loss or customer dissatisfaction. Once established, the management must update this regularly.
Pre-numbered Purchase Orders (PO). Due to the limited number of employees, the pharmacist could be the one to prepare the PO to be approved by the manager. Purchases must be in sequential order.
CONCLUSION
Inventory management is crucial for most companies, but it is especially crucial for small businesses like South Star Drug Store, because when compared with large companies, they usually have limited resources and bargaining power, which have negative effects on the way the inventory can be managed.
This thesis is trying to propose an enhanced inventory control system for a small organization like South Star Drug Store. Establishing policies and procedures is the major step in starting an inventory control. These policies and procedures must be implemented and the management must see to it that everyone in the organization complies with it. A good inventory system does not need several employees to implement segregation of duties and avoid conflict of interests. Proper documentation and supervision of transactions should be given more focus.
RECOMMENDATIONS
From the information given from the previous chapter, it was observed that there were a limited number of employees in South Star Drug Store. Also, it was observed that these employees have limited knowledge in accounting. The researchers propose a simple yet effective inventory control system to be adopted by the pharmacy.
The researchers recommend the following policies and procedures for the enhancement of pharmacy inventory control system:
Purchasing
ROP system and EOQ model:
The researchers suggest the management to establish ROP for each items classified under the ABC analysis and also the implementation of EOQ model in purchasing inventory. This is to resolve the issue of overstocking and/or understocking of inventory that leads to inventory loss or customer dissatisfaction. Once established, the management must update this regularly.
Pre-numbered Purchase Orders (PO). Due to the limited number of employees, the pharmacist could be the one to prepare the PO to be approved by the manager. Purchases must be in sequential order.