P-ISSN: 1908-322X and E-ISSN: 1908-3211 Vol.2 No.3 (2023) Received: 10-15/ Revised: 12-15/ Accepted:12-20-2023 https://neust.journalintellect.com/quest Page 1 | The QUEST| Nueva Ecija University of Science and Technology, Graduate School Analysis on the Inventory Management Practices of Guizhou Liansheng Pharmaceutical Co. Ltd. in China: Basis for Strategic Plan Li Ailin 1 *, Fronda, Jennifer G. 2 1 Guizhou Liansheng Pharmaceutical Company, Beijing, China 2 Nueva Ecija University of Science and Technology, Cabanatuan City, Nueva Ecija, Philippines * liailing-1980@163.com Abstract. The study analyzed the inventory management practices of Guizhou Liansheng Pharmaceutical Company in China. Through survey questionnaires administered to 80 employees selected via purposive sampling, the research examined the company's inventory management system, focusing on factors such as business size, years in operation, ISO compliance, and asset size. Results were analyzed using descriptive statistics, mean scores, and tabulation. The study aimed to characterize the company's inventory management system, assess its scope, methods, benefits, and challenges, and evaluate its impact on production and financial performance. A strategic plan was proposed to enhance the management system, considering ethical considerations throughout the research process. The findings highlighted the importance of efficient inventory management for productivity and financial performance, suggesting areas for refinement to align practices with the company's goals and objectives. Keywords: Inventory management; Pharmaceutical company; Practices; System; Strategic plan 1. Introduction Inventory management plays a crucial role in maintaining balance between supply and demand within organized supply chains, with efficient practices significantly enhancing sales and profits. However, small businesses often overlook the importance of inventory management, leading to the accumulation of excess inventory and associated cash investments over time, hindering their ability to control inventory flow effectively (Bai & Zhong, 2008). Effective inventory management can confer a competitive advantage by enabling businesses to efficiently manage and reduce inventory levels, as highlighted by