New M.E.Thesis Submitted from Industrial

An Improvement in Drug Inventory Management of Hospital Pharmacy Store by Combined ABC-VED Analysis by Vishavdeep Singh, Industrial

Abstract

Purchasing and inventory control are important factors of procurement process. Both are interrelated

and one cannot be effective without each other. Keeping in view the cost and lead time, inventory is stocked as per customer requirements. Inventory is managed a bit differently in hospital pharmacy store as compared to retail stores and manufacturing units. The purpose of this research work is to suggest the suitable methods for having the effective inventory management of pharmacy store situated in Ferozepur (Punjab). Here in this hospital pharmacy store, the inventory of drugs is managed by rough estimates earlier due to stock-out problem of drugs occurring at regular intervals. Moreover reorder level and safety stocks were not managed properly in pharmacy store. An attempt has been made to implement inventory tool (i.e. Combined ABC-VED analysis) in pharmacy store to identify the drugs that required more managerial control. A (3×3) matrix i.e. nine sub-categories are formed, in which AV and BV showed most important and critical drugs. In the sample of 442 drugs selected out of 1200, AV and BV found to be 35 and 39 in number amounting for 36.82% and 29.67% of total annual drug expenditure (ADE) of the pharmacy respectively. Based on AV and BV sub-categories, checklists of proper reorder level have been suggested for having better drug inventory management in hospital pharmacy store.