The paper "The Reasons for Holding Inventories in the Pharmaceutical Supply Chain " is a perfect example of business coursework. The management seeks to be assured the pharmacy associates avoid making errors of mistakenly realising certain products do not have available stocks to be sold to customers at any point of time. Accurate inventory transaction would rest assure this incident is avoided. -The management wants to avoid selling an extra number of stocks for products which have not been in demand that much in the market for quite some time.
Because costs deduct the profits, if the costs spent are not compensated by larger amounts of profits, the retailer risks losing profits instead of making them. -When customers are very well aware that in reality, certain pharmacies or other types of retailers conduct inventories, the customers are able to trust them knowing the retailers are very efficient in providing the best customer service satisfaction. Cost-cutting purposes: -The pharmacy inventory department is able to cut the amount of money spent on giving pharmacy associates’ salaries for overtime at work in order to place the stocks of products in shelves to prepare these products to be sold.
Certain products’ stocks need not be prepared to be sold if it is apparent these products have not been making good sale profits within half a year to one year. -When pharmacy associates are able to cut down the time they spend on working overtime to place stocks of certain products on shelves to prepare to sell them, the management is likewise able to cut down electricity bill costs by preventing the pharmacy to stay open beyond its normal store hours. -Inventories save time for employees to put away stocks not sold regularly.
Hence, costs to be spent on overtime work salaries of employees by the employers are reduced. Inventories usually automatically generate the estimated number of stock quantities needed to be sold to generate sufficient or high profits. - Inventories save time for employees to put away stocks not sold regularly. Hence, costs to be spent on overtime work salaries of employees by the employers are reduced. Inventories usually automatically generate the estimated number of stock quantities needed to be sold to generate sufficient or high profits. Reasons for not holding inventories are the following: -The considerable amount of time spent on holding inventories by the pharmaceutical associates may very well be spent on assisting customers efficiently.
Often when the associates get pressured from taking care of inventories, they fail to give excellent customer service. -Holding inventories induce pharmaceutical staff to intentionally give erroneous inventory data. When holding inventories, associates all the more become tempted to steal some stocks of the products then consequently produce erroneous inventory data to cover up their dishonest acts. This incident can be prevented by having the auditing management staff members check on the accuracy of the inventory data.
However, by doing so, more time is wasted on a long due activity process which can better be prevented through taking a viable option instead.