Comsats Institute of information Technology Lahore Campus
Financial and Managerial Accounting
Inventory Management In Pharmacy
Submitted To: Farhan Ahmed
Group “A” MBA 3.5 Years
Hafiz Muhammad Akram
In the name of Allah, The Beneficent, The Merciful
We dedicate this project to our teacher (Farhan Ahmed). Without their patience, guidance, understanding, support, and most of all love, the completion of this work would not have been possible.
The objective of this study were two-fold: (i) to document the current inventory management and control system as prastised by representative retail drug stores in Lahore, and (ii) to identify problems faced by retailer in utilizing modren technology in inventory management and control system. The research methodology involved in-depht interviews with leading retail pharmacies in Lahore.
What is Inventory?
“The goods bought by a dealer in order to resell them on profit. For the period that the dealer holds the goods in inventory, he or she is bearing the risk related to the goods, which may change in price.” What is "Inventory Management"
“Involves a retailer seeking to acquire and maintain a proper merchandise assortment while ordering, shipping, handling, and related costs are kept in check”. Inventory management software (Distiller, Donor Perfect, Engineer Toolset) helps create invoices, purchase orders, receiving lists, payment receipts and can print bar coded labels. An inventory management software system configured to your warehouse, retail or product line will help to create revenue for your company The area of inventory management include following
• Inventory Management Definition
• Inventory Management Terms
• Inventory Management Purposes
• Definition and Objectives for Inventory Management
• Organizational Hierarchy of Inventory Management
• Inventory Management Planning
• Inventory Management Controls for Inventory
• Determining Inventory Management Stock Levels
INVENTORY MANAGEMENT AT RETAIL LEVEL DRUG STORE
Inventory management has been computerized in most drug stores. All computers are direclty connected with the head office main server. Virtually wholesalers provide inventory control assistance through computerized product movement reports. Drug stores provide the same information on products ordered through the warehouse. Inventory Reordering & Recording:
Inventory management is decentralized. One person is responsible for one shelf each. Pharmacy technician is responsible deciding what to reorder, when to reorder, and how much to reorder. Decisions are taken based on experience. Inventory is reordered daily through telephone calls. Drugs are mostly delivered by head office or their authorized dealers at the store. Items are generally delivered within 2-3 days. Deliveries are checked against invoices. When the order is received the pharmacy technician record the stock in software with the sale price, expiry date, batch number and receiving date also this information is automatically saved in head office sever. Inventory maintenance:
Ordering and maintenance of stock levels is often the responsibility of the pharmacy technician. Many inventory management systems are available for use within the pharmacy. Regardless of the system used the technician must ensure that stock levles are appropriate to allow the pharmacy to operate efficiently without having to borrow stock or order stock at high prices. When stock is delivered, it must be checked and verified against the order. Receipt of the order must be clearly marked on the invoice and feed in the computer. All orders must be stored within the pharmacy. Any damaged goods or expired drugs must be...