Inventory Management using Matrix Analysis and Inventory Index in an Oncology Pharmacy of a Tertiary Care Teaching Hospital

Abstract

Aim: To apply matrix analysis using the principles of Always Better Control(ABC), Vital, Essential and Desirable (VED) analysis and inventory index for inventory control and to identify the drugs that require management control and monitoring. Methods: Retrospective descriptive study using ABC, VED, Matrix analysis, inventory index and Perusal of records at the oncology pharmacy of a 2032 bedded multispecialty teaching hospital. Results: The study analyzed the 169 drugs in the oncology pharmacy for applying monitoring and control techniques. Only 29 out of the 169 oncology drugs were being consumed. ABC analysis showed that of the 29 drugs under consumption, high value drugs ie category A drugs were 4 in number(ie 3.1%). Here, 10% of drugs accounted for 70% of monetary value. Category B contributed 4 drugs ie (3.1%). Here, 20% of drugs accounted for 20% of monetary value. The remaining 21 drugs were under Category C. Here, 70% of drugs accounted for 10% of monetary value. The results of VED analysis showed one drug as Vital, 160 drugs as Essential and 8 drugs as Desirable. Matrix analysis aims at categorizing drugs based on vitality and cost. The matrix showed a total of 5 drugs in category 1 : 4 drugs being high cost essential dugs and one being a low cost vital drug; 156 drugs in Category II : consisting of 4 medium cost essential drugs and 152 low cost essential drugs. Cat III was constituted of 8 drugs that were low cost and desirable. The Inventory index was applied for category one drugs to check for stock turnover and availability. Conclusion: Matrix analysis using ABC, VED and inventory index can assist in the effective management of hospital inventory stocks. It provides management with actionable data on the areas of inventory that require control and supervisory measures. Key words: ABC analysis, matrix, inventory index, VED analysis.