Introduction and Objective : In hospital, about one-third of the annual expenditure budget is spent on inventory, including medicines.. Therefore, an effective inventory management is needed to achieve satisfactory level of customer service while keeping inventory costs within reasonable bounds .The objectives of this study are to identify the categories of medicines requiring greater managerial control, because not all inventories need to be controlled with equal attention and to conduct economic analysis of medicines expenditure at Installation.
Materials and Methods: Details of consumption pattern and unit costs of 425 drugs used were collected and an ABC(always, better and control) analysis was performed. In ABC analysis, annual drug expenditure and unit costs along with names of individual drugs were arranged in ascending order of cost. The list was divided into A, B and C – three groups based on cumulative costs sequentially. Drugs consuming 70.0% of annual drug expenditure were included in group A, those consuming 20.0% were in group B, and others in group C. Data analysis of medicines expenditure of price vocabulary medical stores for year 1391 was undertaken
Results: The total number of the items used by the medical store was 425. By ABC analysis, it was found that 3.1%, 9.4% and 87.5% items belonged to A, B and C. About 70.0% of annual expenditure was on 13 drugs, 20.0% on 40 drugs and 10.0% on 372 drugs. Drugs belonging to group A should be controlled carefully and ordered frequently so as to keep low quantities of, or almost zero stocks.
Conclusion: In hospital pharmacy, ABC analysis will help in improved drug availability and lesser emergency purchase and adequate inventory control. The study depicted the items belonging to category A which requires top managerial control. To conclude, scientific inventory management tools are needed to be applied in routine for efficient management of the as it contributes to not only in improvement in patient care but also judicious use of resources as well.
Key words: drug management, inventory control, ABC Analysis
– Inventory ↑
- – Inventory Control ↑
- – Price ↑
- – Production Cost ↑
- – Ordering Costs ↑
- – Setup Costs ↑
- – Holding Costs ↑
- – Shortage (stock-out) Costs ↑
- – Pareto ↑
- – Stock ↑
- – Essential drug list ↑