Full Project – Computerized drug inventory control system

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CHAPTER ONE

1.0                                         INTRODUCTION

In the recent years there has occurred enormous technology development and wide spread application of automatic information handling techniques. Inventory analysis is concerned basically with two questions. Flow much to order at one time and when to order to know the cost at a minimum level.

Actually, by inventory we mean the measured amount of goods which varies in qualify, over time in response to demand process which operates to diminish the stock and a replenishment process which operates to increase its usually the demand and magnitude of the replenishment can be regulated.

Effort is being made by different organization to maintain stock. This concept is important because even when it is obvious that information obtained by processing data is one of the critical recourses required to run an organization, we found out that so much time is spend in locating and processing data with the result that virtually all decision are made without adequate information. This has always been the cost of inefficiency of most organizations in achieving their desired goals and objective lack of accurate data or no data at all.

1.1     IMPORTANCE OF THE STUDY

This study will enable the management to know the steps benefits and technique applied in computerized drug inventory control system. Through this study other related business operator will understand the importance and efficiency of a computerized management system. This subject will also aid other public individuals to be interested in the use of computer in drug inventor system.

1.2     HISTORICAL BACKGROUND OF THE STUDY

GOD’S OWN FOUNDATION HOSPITAL stock was established in July, 1999 by Dr. Eugene Ogua Owan. This hospital was formally called Sprim Heath Care, after three years the new name was given in 2002.

In Gods Own Foundation Hospital, there is a pharmacy store which is in charge for the distribution of drugs to many hospital as we as patient within the hospital. There are six staffs whose function and operation are done in order to render effective and quick service to their customers. They includes:

• Managing Director
• Manager
• Pharmacist
• Stock keeper
• Sales clerk
• Account clerk

1.3     STATEMENT OF PROBLEMS

The manual system of inventory control used by God’s Own foundation pharmacies has been discovered to exhibit the following set back.

1. Delay in processing of records and the result in untimely generation of information for management decision making
2. Inventory organization cannot boast to total accuracy

• Break down of supply because of the inability to prepared reliable record.

1. Update of inventory record takes time than necessary since transaction are allow to accumulate before processing.

1.4     OBJECTIVES OF THE STUDY

         This study was conducted to achieve the following objective

• To help management to control flow of drugs adequately and minimi                     ze the risk of being under stocked which will disrupt the activities of the management and lead to customer dissatisfaction.
• To reduce the management the burden of spending so much time langing to update their files (ledges) manually.
• Make the whole process more efficiency and reliable.
• To prevent some errors while envies and being entered in the ledger manually.
• To provide a system which store a very large value of information (files) for a long period of time and prevent it from some physical hazard like fire.
• To relive the management the trouble of taking frequent.
• Procurement decision.

1.5     SCOPE OF THE STUDY

         The study focuses on the stock management of Gods Own Foundation Hospital (pharmacy store section) its nature considering the flow of control of drugs, from the point of storage up to sales and level at which an order for new stock is placed.

This system will be related to maintain of inventory records and performance of various analysis relating to inventory movement for example new order being received, items sold and so on. There were few books journals in the school library that has to do with this topic. Therefore the author find it difficult to gather enough fact on the subject matter.

1.6     DEFINITION OF TERMS

MEDICINE: A substance that sis used to treat or keep away disease or illness.

DRUG: a substance used as a medicine which a special effect on the life process of an organism especially a substance used to treat for keep away diseases or illness.

INVENTORY: This is the quantity of good or materials available in an organization store for use or distribution.

SYSTEM: A combination of elements, their attributes and their inter-relationship that are organized in the permit of common objective.

STORE WARE HOUSE: It’s the building mean for the storage of stock items such that they would be made available when required.

STORAGE COST: This is the amount of money involved in maintaining stock items.

COMPUTER: It is a budget that can work with little or no human intervention, in other words, it is electronic device that can accept data as an input and process the data and then give out information as an output.

BUFFER STOCK:  This is the reserve stock due hold to guide against out of stock due to usage pending when a supply would be made.

STOCK HOLDING: This is the quantity of individual stock items to be hold in stock.

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Full Project – Computerized drug inventory control system