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Design and Implementation of a Product Expiry Alert Management System (a Case Study of Shoprite, Enugu). Project material PDF document download start from the abstract to chapters 1 to 5
CHAPTER TWO
LITERATURE REVIEW ON DRUGS EXPIRATION AND CONSUMER PERCEPTION OF EXPIRY DATE
Product expiration is a problem which commonly affects Manufacturing Industries in Nigeria. According to Farrugia (2005), expiry date is defined as an assurance that a drug product should meet applicable standards of identity, strength, quality and purity at the time of use. Farrugia (2005) further indicated that the definition is only applicable under storage conditions specified by the manufacturer on the labeling and packaging. Nakyanzi et al. (2010) maintained that the medicinal supply chain process needs to be managed to avoid wastage, pilferage, misuse, and expiry in developing countries where budgets are tight. According to Thron et al. (2007) higher inventory add to the average age of the product and that lead to more expired products. Tumwine et al. (2010) reported that expired Product stock is a waste of resources, which cannot be afforded in a resource-constrained nation. Poor quantification practices and donors ordering large quantities of Product without the departmental inputs contributed to large quantities of expired Product in Uganda (Tumwine et al., 2010). Patients usually perceive the expiration date as an important indicator of the drug’s quality, short-dated drug products lessen patients’ interest which indicates that demand is related to the remainder of shelf life (Hug et al., 2005). Antai and Mutshinda (2010) supported the view that pharmaceutical chains continuously have to move drug products back and forth between pharmacies and manufacturers because of the expiry dates attached to the delivered Product. Antai and Mutshinda (2010) further indicated that expiration of Product randomly occur in pharmaceutical inventory.
CONTROL AND MANAGEMENT OF MEDICALS SUPPLY
Mustaffa and Potter (2009) reported that awareness of the supply chain management within hospitals is low and managers are not properly equipped to control the supply of medication. Due to the severity of using expired or ineffective Product, it is critical that pharmaceutical outlets get the reverse logistics right from the start and the most common causes of returns in pharmaceutical outlets are expired Product and recalls (Kumar et al., 2009). Since most clinical decisions involve products management and medical supplies, supply chain activities have an important role in effective and efficient service delivery in hospitals (Bendavid et al., 2010). Bhakoo and Chan (2011) indicated that pharmaceutical products have long development cycles and this presents a challenge for supply chain managers in hospitals who have to manage their internal relationships with medical practitioners while simultaneously managing their external relationships with pharmaceutical manufacturers, wholesalers and distributors. Huq et al. (2004) maintained that organization may experience a partial loss of revenues when their inventory gets close to expiration date and customers become less likely to purchase products with short expiry date. Vries and Huijsman (2011) stated that in healthcare sector, the basic rationale of a supply chain management approach is founded in the belief that intensive co-ordination and integration between pharmaceuticals, medical devices and patient flow might lead to a better health supply chain performances.
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MANAGEMENT OF PRODUCT INVENTORY
Thron et al (2007) indicated that owing to the age of products held in inventory, product issuing and replenishment strategies are completely crucial and need to be considered more comprehensively. The unique nature of the supply chain for pharmaceuticals makes managing complex information for supply chain effectiveness challenging, and lack of proper information mechanisms may lead to poor inventory control methods (Asamoah et al., 2011). According to the study conducted by Thron et al. (2007), the frequency and place of expiration control such as storage, distribution center or retailer-shelf determine the timelines of expiry or product flow information. Burt et al (2003) maintained that in order to develop ideas of how to reduce waste throughout supply chain cycle, one has to know and understand where that waste has been generated. Burt et al (2003) further indicated that any warehouse accumulates salvageable or waste material from breakage, deterioration and errors in record keeping regardless of how properly the warehouse is managed. In a book written by Magad and Amos (1995), it was stated that ‘some materials are more susceptible to spoilage than others; material handling systems were designed to consider the shelf-life of stored items’.
RODUCTS ISSUES AND DEMANDS
According to Thron et al. (2007), it should be fairly obvious that a FIFO approach is most advisable within a frame-work of products that have a short life span. Dobler and David (1996) agreed that reduction of outdated products costs could be realized by developing systems to detect slow moving and in-active materials. Hugos (2006) indicated that ‘the aim of inventory management is to reduce costs of inventory as much as possible while still maintaining the service levels that the customers require’. Dobler and Burt (1996) maintained that deterioration, damage and pilferage of products are controllable to a great extent by managers.
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