Chapter 2

REVIEW OF RELATED LITERATURE

This chapter presents the related literature and studies after the thorough and

in-depth search done by the researchers. This will also present the synthesis of the art,

to fully understand the research to be done.

Drug/Medication Inventory Management System helps ambulatory clinics and

practices to manage and control their stock inventory. Some practices stock up items

such as OTC drugs, Supplements, Lab kits, etc., in their facility to be dispensed/sold to

patients for their convenience. 

This study provides a detailed look on how a Drug/Medication Inventory

8
Management System works in the business. The management of the flow of drugs,

generally as drugs are issued, stocks is reduced, and as drugs are received.

According to CRNBC (College of Registered Nurses, British Columbia),

nurses may also have responsibility for managing a medication inventory in their

health care organization. In some cases, the medication inventory is large and varied

(for example, in remote practice) while in other cases, it is small and specialized (e.g.,

in a dialysis clinic).
 Employers are responsible for providing the organizational supports

necessarily for the safety management of medications. Nurses collaborate with their

employer to arrange the necessary infrastructure, including quality assurance

mechanisms, equipment and supplies.

Medication Inventory Management System manages to meet client needs,

maximize security, and minimize practice errors by arranging the medication

inventory in a systematic manner, store  medications  as  directed  on  the 

manufacturers’ label, check for expired medication products at least once a month and

remove expired medication from the active medication inventory, does not return

previously dispensed medications to the medication inventory or reuse them for

another client, keep  medication  inventory  records  that  are  current, accurate and

meet legal requirements.

Local Study

According Abacahin, Amil, Canda, Dumon, Matilos, and Perocho (2012), the

project is an automated Sales and Inventory System which has an array of functions

involving sales and inventory that can be of very big help to the company. It aims to
make files updated and easy to locate, hence, data and information become accurate

and orderly which may provide a faster alternative or means in doing the inventory.

The system inventory may also be harder to cheat because the coming in and going out

of stocks are recorded in the system. The warehouse personnel are more accurate in

their reports and can save more time by using the system. Since the system user has 10

‘saved time’, the personnel in-charge can then be more productive in terms of output

which can be beneficial to the company.

According to Pedro C. and Eliana C. (2011), the importance of patient records,

also known as medical records, is related to different needs and objectives, as they

constitute permanent documents on the health of patients. With the advancement of

information technologies and systems, patient records can be stored in databases,

resulting in a positive impact on patient care. Based on these considerations, a research

question that arises is "what are the benefits and problems that can be seen with the

use of electronic versions of medical records?" This question leads to the formulation

of the following hypothesis: although problems can be identified during the process of

using electronic record systems, the benefits outweigh the difficulties, thereby

justifying their use. To respond to the question and test the presented hypothesis, a

research study was developed with users of the same electronic record system,

consisting of doctors, nurses, and administrative personnel in three hospitals located in

the city of São Paulo, Brazil. The results show that, despite some problems in their

usage, the benefits of electronic patient records outweigh possible disadvantages.

Based on the StudyMode.com (2012), it is without a doubt that one of the

major roles played by today in almost every area in the society particularly in business

and marketing is the computerized system. His system enables us to make every

detailed work and follows accurate directives without error. This study is prepared for

the implementation of the Sales Inventory system in Borderless Hub Philippines, Inc.

located in Rm. 306-307 Pink Walter Building Quimpo Boulevard, Davao City. In

order to know the problem, we conducted an interview with the managing team for 11

sales, billing, and inventory. This led us to problems like the manual time-consuming

record of documents, billing errors and difficulty in data retrieval

According to Averion, Gaela, and Libo (2009), it stated that: “It will minimize

the difficulty of the manager in processing inventory because physical counting

products, stocks and computing inventory summary will be the system job. It will

monitor the availability of products, items to prevent under stocking, over stocking

and running out of stocks. The system will also simplify the transaction between

dealer and supplier relationship because of the updated supplier information and price

list of items will correspond to collaboration with other supplier.” An article by

Junaito Villegas (June 23, 2009) entitled “Inventory controls are key to dissuade
employees from stealing” states that: “Computers can only do much, but coupled with

inculcating honesty among staff and instituting the appropriate deterrents, they can

work very well in minimizing losses and pilferage. It is therefore highly advisable to 12

do both the manual and the computerized inventory system in a retail and wholesale

business.”

According to Chua and Hufano (2015), Currently, there are plans to privatize

public hospitals here in the Philippines because of poor management and lack of

financial resources to provide quality healthcare services. On one note, privatization

can solve the lack of finances as private institutions will invest in it. However, it will

merely become businesses as these hospitals increase cost of services which delineates

itself from the main objective of the establishment of public hospitals. One of these

hospitals lined up for privatization is the Philippine Orthopedic Center. POC is the

main public hospital catering to orthopedic cases. Its role in providing healthcare

services is crucial. However, it experiences delay in transmission of both request slips

and charge slips which facilitate interdepartmental communication. In some cases,

these slips even get lost. These pose great problems because charge slips dictate

financial revenue while request slips dictate the ability to accomplish its services. To

address these, a hospital information system will be developed in which the interplay

of departments is highlighted. Hence, modules of the system will cover from the
registration of a patient to its diagnosis (inpatient or outpatient), and the different

specialty departments which offer specialized medical services such as pharmacy,

laboratory, and radiology. All these will terminate in the billing module and medical

records. After series of intricate design and development, the HIS built is able to

capture all incoming patient information and facilitate the flow of data as patients go

through transactions inside the hospital. After which, the system is also able to

generate an accurate patient statement of account as compared to before wherein 13

manual calculation was done. It also generates reports based on patient records and

transactions as inputs to decision making.

Based on the KONEK.com (2011) management once said, Manual method is

very hassle and time consuming process of inventory. It has many drawbacks as there

are many mistakes while recording large data and it disturb some important

transaction sometimes. Upon hearing this, the researchers developed a system which

will help the management keep record of inventories in systematic way and help them

produce report about the inventory or stock currently available in their store in

automatic way. Through this the hassle and committing mistakes while recording large

data could be avoided. Also the work of the management and the time consume during

inventory will be minimize. KONEK.com is a hardware store located at Mabini St.,

Molave Zamboanga del sur. It was owned and managed by Mr. And Mrs. Roy
Megapatan. They started at a very small scale business selling cell phone accessories.

But because of the company's dedication for hard work and determination to rise

among others, the very small hardware store becomes one of those who are trusted

when it comes to supplying electronic devices such as computers, computer

accessories, cell phones, cell phone accessories, )ash drives and etc. in its community.

Today KONEK.com, having three branches with in the municipality,boasts its tag as

one of its community's leading hardware store.

14

Foreign Study

According to Dr. Pratibha N, Dr. Roop K (2008), Hospital and clinical

pharmacy, 8th edition. Drug/Medication Inventory Management System plays a very

important role in the business it ensures that drugs should be supplied at right time in

the facility, it also avoid shortage and maintain optimal stock.

According to Ayad K. Ali University of Florida, 101 S Newell Drive

(2017), Drug Inventory Management System aims at reducing procurement and

carrying costs, while maintaining an effective stock of products to satisfy clients and

prescribes demands. Effective inventory management ensures meeting customer and

patient demands. Unavailability of a product when needed may cause the facility to

lose a customer and predisposes inconvenience to the prescribing physician; and may 15

adversely affect patient’s well-being in hospital pharmacy settings, especially when

the product is an essential lifesaving one.

According to Alfa A. (2015), with the advent of computers and its related

technology,
14 in which everything needs to be done efficiently and effectively the

existences of Automated Clinic Record Management System (ACRMS) become

necessary. The used of ACRMS can enhance the services and also the workflow of all

activity that happens in a clinic where it helps in reducing the workload of medical

staff, the number of manpower needed and it also make clinic management become

more manageable and easier to control.

Based on the publication of U.S. Small Business Administration (2010), what

constitutes successful inventory management (balancing cost versus benefits of

inventory) includes maintaining a wide assortment without spreading the rapidly

moving items too thin, increasing inventory turnover without sacrificing service,

keeping stock low without sacrificing performance, obtaining lower prices by making
 16

volume purchases, and maintaining an adequate inventory without an excess of

obsolete items.

According to McHugh M. Thomas (2012), computerized inventory

management system provides many benefits that are hard to obtain using paper

methods or in-house spreadsheets. System that are specific to the lab can be used

relatively quickly without a significant learning curve or system customization. The

ability to analyze the inventory, item usage, purchasing history and the other areas

(e.g., lot numbers, equipment) are important improvements to spreadsheet and paper

system. If the system includes equipment tracking, it can be used to determine the

capital asset as well as track the service history and lifespan of equipment. The ability

to streamline and automate many of the inventory control task will be increasingly

avoiding expiring reagents. The ability to ensure right reagent in the right quantity is

present at the right time is critical to laboratory operation. Given that reagent

approximately one-half of most labs operating budgets continued focus on this

expense will assist the laboratory in continuing to provide accurate and timely

laboratory testing at the lowest cost.

According to Henderson (2008), Inventory System Consist An inventory

control system is used in Many warehouses to track the location, quantity and status of

goods that are to be sold. Shipping and receiving of products is scheduled by and
inventory control system Inventory control uses barcodes and RFID tags to track

specific items. An audit, or a Physical count of inventory, is used to find out how

Many items are in an inventory. Inventory taking is often required in order to get an

accurate count for accounting valuation purposes. Some inventory items have bar

codes attached to them or is Imprinted on them These barcodes can be read during an

audit by bar code reading devices.

17

Synthesis

The related literature and studies discussed in the previous chapter relate this

project in different aspects like theories, applications, and concepts. Ideas presented in

every part of the last chapter explain and elaborates on how the information

management system can be implemented and operated. Various methods are applied

within the related studies.

 Same thing applies about the study of CRNBC, the researchers proposed

system will address the issue regarding drugs or supplies expiration dates being

removed from the active medication inventory.

One of the highlight of the proposed system is it ensures that the demand for

medication meet its client needs all the time, by avoiding shortage and maintaining the

stock.

Chapter 3

RESEARCH AND METHODOLOGY

This chapter accommodates the proponents design and the methodology used

to supervise the study. It incorporated the research subject, utilized gathered data and

its sources. This chapter displays how the proponents assembled, analyze presented

the data.
Research Design

The proponents’ research design uses an applied research, it emphasizes on

solving problem since it is commonly used to gather facts about markets competitors

and customers. It made a significant influence on how the proponents approach the

specific problem presented by the business before discussing the appropriate way to

approach it, with the use of the gathered information the proponents determine the

known problem and chose to solve it practically and systematically. Achieving the
19
best possible outcome and predict any problem that could arise in the website.

Waterfall System Development Model

Requirements

System Design

Implementation

Integration and
Testing

Deployment of System
 Maintenance

Figure 3: Waterfall System Development Model

Figure 3 shows the Waterfall System Development Cycle that the

proponents used, which were done proceeding with the proposed system. The

proponents followed these development steps to use in the proposed system to meet

the efficiency of the time needed. The following techniques used to evaluate the
20
proposed system that is formed in Waterfall System Development Model is the form

of design in developing the proposed system.

1. Requirements. The proponents gathered information about the Avitus Kidney

Care and Dialysis Center for them to know the requirements and the need of

the said beneficiary. It also involves decision-making based on the design

needed and what will be the function of the information management system

2. System Design. In this stage the proponents studied the requirement

specifications and prepare the system design. The proponents also prepared the

codes that needs to be written.

3. Implementation. The proponents implemented the design system that has

been created based on the previous phase.

 4. Integration and Testing. The implemented system undergone with various

software integration and testing conducted by the proponents and also by the

beneficiary company.

5. Deployment of System. The proponents deploy the software in the Avitus

Kidney Care and Dialysis Center Olongapo Branch.

6. Maintenance. This stage will occur once the beneficiary company will request

for modifications and improvement of the systems performance. 21

Locale of the Study

 Figure 4: Vicinity Map

Figure 4 shows the location of Avitus Kidney Care and Dialysis Center. It is

located at the left side of Pandayan Bookshop and is a walking distance from AMA

Computer College Olongapo.

22

Research Instruments

The proponents made used of questionnaire, conducted an interview, and read

some references.

The questionnaire is formulated with the help of their adviser. Also, the

proponents conducted an interview to the owner and staff of Avitus Kidney Care and

Dialysis Center Olongapo Branch. Some of the company’s customer and clients are

also interviewed by the proponents to gather some information about the management.

Besides, the proponents read some articles on the internet, published and

unpublished books about the related work for the design information management

system.
 23

Validation of Instruments

An initial draft of questionnaire to determine the observation towards the help

of Information Management System was presented to their adviser, Ms. Ma. Christina

C. Dela Cruz for the approval.

Data Gathering Procedure

The proponents personally went to Avitus Kidney Care and Dialysis Center

Olongapo Branch to conduct a formal interview and gather all relevant information.

Upon interviewing, the proponents were able to familiarize with process and

communication done inside.