Descarte's Discourse on Method

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Descartes’ method is something that many have tried to examine. We can only do out best to view Descartes’ yardstick for measuring reality and truth and then compare our own yardstick to Descartes and to the world. Descartes purpose was to make people think deeper, to penetrate the walls and go outside of the box which you live in. He clearly states that he is not trying to teach his method, but only to describe how he has conducted his own (28). The next argument is how valid is his use of logic, and how do his conclusions compare to mine. The fundamental principles of thought that Descartes examines are highly intellectual.


I believe that Descartes method first relates to being a mathematician. Mathematics has what is thought to be pure and concrete answers, where as life does not have concrete answers of existence and how to books. Descartes even says on page 31 “Above all I enjoyed mathematics, because of the certainty and self-evidence of its reasoning”. In math a type of science you use the scientific method to prove your results, this method is what Descartes uses for the foundation of his work. Working with the scientific method so much, spilt over to how he could apply it to his daily life. This method laid the foundation of the building blocks of Descartes’ life. Brick by brick Descartes tried to prove the truth and the reality of God. By creating this foundation he was able to use it as a yardstick to measure each little detail of his work and to build the wall of his paradigm. One of Descartes most famous quotes is “I think, therefore, I am.” Descartes comes to this conclusion of reality by first using doubt as the key to unlock the doors of truth. He found that we cannot trust our senses, for they often deceives us and it is hard to prove ourselves of the authenticity of things which emerge to correspond to our sensations. We cannot even be sure of the reality of our own bodies; perhaps we are dreaming that we have bodies. How can we know whether we are dreaming or awake? We may be entirely mistaken in believing what we see. Perhaps the world is only in the mind, in imagination. Everything may be doubtful. The only certainty seems to be that there is nothing certain. He then discovered that though all things may be doubtful, the fact that we doubt is not negotiable. The basis of doubt cannot be disputed. If thinking is the process of doubt, then thinking is a certainty. Therefore, Descartes concludes, “I think, therefore, I am.” This knowledge is the only assured one, and it does not come from sensations.


As previously mentioned Descartes was not trying to tell everyone how to shape his or her views, but only telling how he created his yardstick. I feel that by doing this he only challenges his readers to do the same. What works for him may not always appeal to others. I created my yardstick of life by measuring my previous experiences and my predecessors; this is the how it has worked for me thus far. I am sure it will change over time as I begin to age and go through more life experiences.


Descartes use of logic is very simple. He seems to view the entirety of a situation by stepping outside his box, and look at each individual part. Descartes says, “I formed a provisional moral code which consisted of only three or four maxims, which I am willing to disclose. These maxims or fundamental principals also created the walls of Descartes’ world. His first principle was to obey and follow the laws of God (45). Descartes second maxim was to be firm and resolute in his actions (46). His third principle was to always conquer himself rather than fortune, and to change his desires rather than the order of the world, and that the only power that we as human have is thought, and that we can only do the best regarding things external to us (47). Finally, chose an occupation that you like best (48). With these principle support walls in place, I as well as Descartes feel that one can enjoy a life worth living. In conclusion, it is Descartes use of reason and logic, which convinces him of the truth. For as his opinions are entirely his and offers no apology of them being new (90).


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Enhancement of Pharmacy Inventory Control System Thesis: CONCLUSION

CONCLUSION

Inventory management is crucial for most companies, but it is especially crucial for small businesses like MDC because when compared with large companies, they usually have limited resources and bargaining power, which have negative effects on the way the inventory can be managed.
This thesis is trying to propose an enhanced inventory control system for a small organization like MDC. Establishing policies and procedures is the major step in starting an inventory control. These policies and procedures must be implemented and the management must see to it that everyone in the organization complies with it. A good inventory system does not need several employees to implement segregation of duties and avoid conflict of interests. Proper documentation and supervision of transactions should be given more focus.

Enhancement of Pharmacy Inventory Control System Thesis: RECOMMENDATIONS

RECOMMENDATIONS

From the information given from the previous chapter, it was observed that there were a limited number of employees in MDC. Also, it was observed that these employees have limited knowledge in accounting. The researchers propose a simple yet effective inventory control system to be adopted by the pharmacy.

The researchers recommend the following policies and procedures for the enhancement of pharmacy inventory control system:

Purchasing

ROP system and EOQ model. The researchers suggest the management to establish ROP for each items classified under the ABC analysis and also the implementation of EOQ model in purchasing inventory. This is to resolve the issue of overstocking and/or understocking of inventory that leads to inventory loss or customer dissatisfaction. Once established, the management must update this regularly.

Pre-numbered Purchase Orders (PO). Due to the limited number of employees, the pharmacist could be the one to prepare the PO to be approved by the manager. Purchases must be in sequential order. The researchers also recommend the management to require the following information in each PO:
1. Complete description of each item (i.e., brand name, generic name, and other specifications)
2. Quantity required
3. Date required
4. Recommended vendor or source
5. Shipping requirements

Criteria for selecting vendor/supplier. To minimize the problems occurring in purchasing goods, the researchers advocate the following criteria in selecting their suppliers:
1. Have you ever reviewed existing purchasing procedures to see if they meet your needs?
2. Do you have specific policies and procedures regarding who is authorized to purchase goods or services? Receive salespersons’ calls? Place requisitions? Process records?
3. Have you ever discussed your purchasing function with other pharmacies or with professional organizations to obtain suggestions or techniques?
4. Have you ever visited or investigated your existing or potential vendors to verify that they can meet your requirements in terms of price, quality, quantity, and service?
5. Does your volume of purchasing for any particular item warrant you’re dealing directly with its manufacturer?
6. Do your vendors have regular and competent sales personnel?
7. Have you had problems with suppliers in regard to shortages? Backdoor selling? Delivery delays? Unsolicited favors and gifts?

Receiving

Reject deliveries not having purchase order support. The receiving manager should reject all supplier deliveries for which there is no authorizing purchase order, or for which there is not a sufficient authorized quantity to cover the unit quantity of the delivery.

Inspect and count the goods received. Once goods are received, the pharmacist should inspect the goods to see if requirements are complied with and count the goods to see if goods ordered are actually received.

Blind Copy Purchase Order. The manager should provide the pharmacist with a blind copy of purchase order. This blind copy provides the list goods ordered excluding the quantity. The pharmacist needs to fill up the blanks and submit back to the manager. This is another control for securing the inventory count.

Receiving Report. The receiving staff must prepare a receiving report to document the receipt of goods.

Storage

ABC analysis. The researchers propose that the pharmacy use the ABC analysis for their inventory classification. This will determine the importance of items and the level of control placed on the items. This gives a close control to fast moving and items with high value.
Class A items or the items with the highest value should be given more level of importance. To follow this theory, the researchers propose that the management conduct a semi- monthly physical count for Class A items. Class B items should be physically counted monthly. While Class C items being given the lowest importance should be counted every three months. A thorough explanation of the ABC analysis is included in Chapter 2.

Stock rotation. This is an important inventory management principle that encourages the use of products before they expire and helps prevent the use of expired products. Under this method, expiration date of newly ordered products should be compared with that of the existing stock. Products that have already expired should be removed. Products that will expire in the near future should be highlighted and placed in the front of the shelf or bin.

Segregate items subject for disposal. Obsolete inventory should be segregated from the current stock. Those items that requires disposal should be transferred to another room. The manager may decide to return the goods to original supplier.

Restrict access to stockrooms. The management should determine as to which employee can have access to the stockroom. In the researcher’s subject, it is the pharmacist. Other employees should be prohibited in entering the stockrooms.

Regular check of the facilities. It is important that the facilities, especially the stockrooms, are checked regularly for any possible cause of inventory loss like fire or water leaks. It should be ensured that all are in proper condition.
Issuing

Stock cards. The researchers advocate the use of stock cards to keep record of transactions for each item. This card shows the receipt and issuance of the item including the quantity and cost. This is to complement the implementation of perpetual inventory system.

Perpetual inventory system. This requires continuous recording of every transaction that relates to inventory. This would minimize errors in determining the number of inventory at hand.

Reporting.

Inventory valuation. The management should determine the valuation of inventory to prevent misreporting. Without this, inventory may either be understated or overstated. Researchers suggest the use of FIFO method. Elaborate discussion of this method is included in Chapter 2.

The researchers also provided a flow chart which illustrates the recommended duties of each staff and the flow of the inventory system of MDC. This flow chart is shown on the next page, Figure 4.

Enhancement of Pharmacy Inventory Control System Thesis: Summary

SUMMARY, CONCLUSION AND RECOMMENDATIONS

The study aimed to investigate the current pharmacy inventory control system of MDC. Weaknesses were identified through careful examination of the system. Management and all other people involved were interviewed and given a set of questions to give the researchers a clear view of their system. Non-participant observations were also made to verify the data gathered from the interview and questionnaires.

The inventory control system of MDC was composed of five stages namely, Purchasing, Receiving, Storage, Issuing, and Reporting. In Purchasing, request for replenishment was sent when there was a little buffer inventory left. The management does not use ROP system and EOQ model as part of their purchasing procedures. The manager would simply make a call to their suppliers; no Purchase Order (PO) form was prepared to document the purchase.
In Receiving, the pharmacist would inspect and count the goods delivered. No Receiving Report (RR) was prepared and physical count was not supervised. The goods received would be brought to the pharmacy or stockroom. There were no existing logbooks as to record the receipt and issuance of goods. Also, there was no proper valuation of inventory. Hence, reporting of their inventory is not reliable.

From the gathered data, the researchers assessed that the current pharmacy inventory control system of MDC is relatively weak and lacks control for security. It was also observed that employees in MDC had relatively low knowledge about accounting which convinced the researchers to create a simple and easy to learn enhanced inventory system for the pharmacy.

Enhancement of Pharmacy Inventory Control System Thesis: Introduction

INTRODUCTION

Effective inventory management is an important part of a manager’s job. Managers are tasked to make consistent, reliable, and timely decisions under the challenges of uncertainty, pressure, and lack of information. It is often that managers do not have enough time or information to make a perfect decision but they are forced to solve problems using resources within their control.

Effective inventory control requires managers to ensure inventories of the right items in the correct quantities. When an organization overstocks, money is wasted since procuring, storing, and accounting for unneeded items require time, space, and money which could have been used on more critical assets. Likewise, when understocking occurs the organization will more likely to only partly meet their mission or possibly not meet the mission at all. Also, a weak inventory control system is more prone to errors and fraud. These are some of the problems of Malijan Diabetes Center (MDC), the research client.

MDC is a specialty clinic affiliated with St. Cosmas & St. Damian Multi-Specialty Clinics. Established in 2008, MDC is an out-patient diagnostic clinic which aims to provide pediatric and diabetes treatment for the residents of Sto. Tomas, Batangas and its neighboring towns. It is a family-owned business where a group of medical practitioners contribute their specialties in the medical field to treat patients. The clinic has a laboratory that does certain tests for their patients. A pharmacy inside the building where the clinic is located is also available where patients can conveniently buy their needed medications. The pharmacy maintains the supply of medicines and supplies for the laboratory through a manual inventory system. This research will aim to recommend an enhanced inventory control system to be used by the clinic’s pharmacy.

Enhancement of Pharmacy Inventory Control System Thesis: Statement of the Problem

Statement of the Problem

The study will enhance the existing inventory control system for MDC’s pharmacy for a better inventory management and to eliminate/reduce risks of errors and fraud. It will seek to answer what enhancement and design the pharmacy can adopt for a more effective and efficient inventory system.

Specifically, it endeavors to answer the following questions:

1. What are the current policies and procedures of MDC to account for their pharmacy inventory?
2. What are the strengths and weaknesses of the current inventory control system?
3. What appropriate measures should be adopted to minimize risks from the weaknesses and threats?
4. What inventory management and accounting concepts, principles, and techniques should be applied to the enhanced inventory control system?

Enhancement of Pharmacy Inventory Control System Thesis: Objectives of the Study

Objectives of the Study

The main goal of the study is to evaluate the current pharmacy inventory control system of MDC and come up with an enhanced inventory control system for the clinic’s pharmacy for a better inventory management and eliminate/reduce risks of errors and fraud. It will seek to give an enhancement and design the pharmacy could adopt for a more effective and efficient inventory system.

Specifically, the study aimed to:

1. determine the current policies and procedures of MDC to account for their pharmacy inventory;
2. verify strengths and weaknesses of the current inventory control system;
3. provide appropriate measures to be adopted to minimize risks from the weaknesses and threats; and,
4. identify inventory management and accounting concepts, principles, and techniques should be applied to the enhanced inventory control system.