Precious S. Diva | Melanie R. Trinidad
Discipline: Accountancy
The study was conducted to enhance the existing pharmacy inventory control system of Malijan Diabetes Center (MDC) to have a better inventory management and to reduce risks of errors and fraud. It sought to identify the enhancement and design that MDC could adopt for a more effective and efficient inventory system.
Specifically, the study aimed to determine the current policies and procedures of MDC to account for their pharmacy inventory; verify strengths and weaknesses of the current inventory control system, provide appropriate measures to be adopted to minimize risks from the weaknesses and threats; and identify inventory management and accounting concepts, principles, and techniques that should be applied to the enhanced inventory control system.
The study used descriptive research design. Interview with employees was conducted and internal control questionnaire was given to the clients to gather the needed data. Finally, observations, walkthrough, and nonparticipant were conducted to verify the results of the interview and questionnaire.
Results revealed weaknesses of the current system through SWOT analysis. Therefore, the study proposed different methods from accounting and management concepts to reduce the threats from these weaknesses. ABC analysis was suggested as a method of classifying the inventory of the pharmacy. Moreover, the perpetual inventory system was suggested to avoid expensive periodic inventory counts. Furthermore, the use of different accounting forms like Purchase Requisition, Purchase Order, and Receiving Report as well as close supervision were recommended to reduce the weaknesses found in the pharmacy’s current inventory system.
ISSN 1908-3866 (Print)
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