The problem of overstocking and Physical inventory

understocking of drugs can be - Requirement of COA.

attributed to the following: - Ensures that the hospital's fiscal operation

1. Ineffective purchasing administration is properly recorded and that adequate

without any control system. inventory is maintained.

2. Lack of technical requirements attached - Spot check type inventory

to documents. - Post inventory

3. Poor storage facilities. - Perpetual Inventory System

4. Problem of availability. • Manual System

5. Transportation and delivery problems, • Electronic Data System

etc.
6. Geographical and climatic conditions time Drug requisitioning
lag between requisition and purchase. 1. Balance of the revolving fund.
2. Conditions such as seasonal, etc.

Objectives and requirements of 3. Transportation and delivery time

inventory management problems.

1. To have the stock available when and 4. Availability of alternative medicine.

where needed. 5. Ratio of supply and demand.

2. To reduce undue strain on the

government's scarce resources. Types of purchasing

3. To maximize utilization of available 1. Purchase thru public bidding

storage facilities. 2. Emergency purchase

4. To provide area for cost reduction on 3. Negotiated purchase

drugs without compounding quality. 4. Procurement from duly licensed

5. To ensure minimal waste/expired drugs manufacturers and exclusive distributors.

through proper storage management. 5. Procurement thru the procurement

service.
6. Procurement from other Philippine
General agencies or foreign government.