1. Presented By:
Nitika chaudhary (A01)
Ngangbam Bheigyapati Devi (A04)
Ragini Maddheshiya (A18)

2. CONTENTS
Objectives of the study
Introduction
Importance of drug
inventory management
in hospitals

3. Tools used
Case analysis
Suggestions
Conclusion

4. To analyze the annual consumption and expenditure
• To use various tools and techniques
To Identify and classify the items in the pharmacy

5. PGIMER
1500
BED
Tertiary care,
research and
referral health
institute in
Chandigarh
In year 20072008
approximately Rs
Rs.40, 012,612
spends in
pharmacy store.

6. Hospital conducted
ABC,VED and ABC-VED
matrix analysis of the
pharmacy store.
For identifying the
categories of necessary
drug items
Helps to eliminate the
stock-out situation and for
effective control.

7. 
Pharmacy is largely used for therapeutic activities or
services of the hospital.

Large amount of hospital budget is spending on
purchasing and maintaining.



The supply of medicines are irregular most of the time.
To eliminate the out of stock situation.
To minimize the cost incurred in purchasing and
maintaining (holding cost) of the drug inventory.

8. 
To maintain the consistent supply of the drugs
throughout the hospital.

It is help in decreasing the total cost and increase the
efficiency of the hospital services.

9. Three type of toots are used
ABC
analysis
VED
analysis
ABC-VED matrix
analysis

10. It is the method in which the items or activities
are classified according to their priority
A items
Consumption of
items is 10-15% but
there expenditure
incurred about 70%
of total cost.
B items
C items
Consumption of
items is 20-25% but
expenditure incurred
is 20% of total cost.
Consumption of
items is 65-70% but
expenditure incurred
about 10% of total
value.

11. VED analysis is based on critical values and shortage
cost of the items. It classified drugs into three different
categories
Vital
Essential
Desirable

12. It is a combination of ABC and the VED analysis and
useful in controlling the material supplies.
Category 1
Vital and
expensive items
i.e.,AV,BV,CV,A
E,AR.
Category 2
Essential items
having average
cost i.e.,
BE,CE,BD.
Category 3
Desirable and
cheaper

13. ABC ANALYSIS OF PHARMACY STORE IN
THE PGIMER HOSPITAL
Category
No. of items
% of items
ADE (Rs.)
% of ADE of
the
pharmacy
A
58
13.78%
27,996,865
69.97%
B
92
21.85%
7,981,331
19.95%
C
271
64.37%
4,034,416
10.08%

14. Percentage of ADE of the pharmacy
80.00%
Cumulative Annual expenditure%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
0.00%
10.00%
20.00%
30.00%
40.00%
Cumulative % of items
50.00%
60.00%
70.00%

15. Category
No. of items
% of items
ADE (Rs.)
% of ADE of
the pharmacy
V
51
12.11%
6,857,814
17.14%
E
250
59.38%
28,963,447
72.38%
D
120
28.51%
4,191,351
10.48%

16. Percentage of ADE of the pharmacy
80.00%
59.38%, 72.38%
Cumulative Annual expenditure %
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
12.11%, 17.14%
28.51%, 10.48%
10.00%
0.00%
0.00%
10.00%
20.00%
30.00%
40.00%
Cumulative % of items
50.00%
60.00%
70.00%

17. Category
No.
items
I
of
% of items
ADE (Rs.)
% of ADE
of
the
pharmacy
93
22.09%
29,691,956
74.21%
II
230
54.63%
8,895,160
22.23%
III
98
23.28%
1425,496
3.56%

18. 80.00%
22.09%, 74.21%
Cumulative Annual expenditure%
70.00%
60.00%
50.00%
40.00%
30.00%
54.63%, 22.23%
20.00%
10.00%
23.28%, 3.56%
0.00%
0.00%
10.00%
20.00%
30.00%
cumulative % of items
40.00%
50.00%
60.00%

19. 



Computerized Inventory management software.
good customer services and good relationship with
supplier.
Reviewing of the inventory level should be
occasionally done to know the seasonal usage of drug
items and to ensure how much inventory we have in
hand.
The pharmacy department should carefully monitor the
order cycle time as fluctuation in it leads to over stock
or shortage of inventory.

20. 
For high valued drug EOQ method can be used to
determine the order quantity and for lower value items
fixed order interval method can be used.

For small stores like IPD and OPD two bin systems
can be used for inventory control.

21. The ABC and VED techniques helped the pharmacy
store to eliminate the out of stock situation and better
supervision and efficient control of drugs to eliminate
the interruptions in day to day operation of hospital.