Improving operational efficiency of pharmaceutical inventory

Abstract

The pharmaceutical inventory is one of the significant parts involved in hospital operations. However, the limitation of inventory space causes the complexity of inventory control. The purpose of this research is to improve the efficiency of Maharaj Nakorn Chiang Mai Hospital’s Pharmaceutical Inventory. The principle of ABC-VED Classification is applied in this research to prioritize the medicine inventory. Moreover, the optimal number of inventory is defined using Economic Order Quantity (EOQ), Safety Stock (SS), and Reorder Point (ROP). The result of the developed models can reduce the total cost by 17.62%, medicine storage by 64.40% and medicine shortages.