MEDICINE INVETORY CONTROL BY CONSIDERING EXPIRY PERIODS AND PRODUCT RETURNS USING THE ALWAYS BETTER CONTROL (ABC) ANALYSIS AND THE HANDLEY WITHIN MODEL OF ECONOMIC ORDER QUALITY (EOQ) AT PHARMACIES IN INDONESIA

Irwan Sukendar,Munfiqotusshifa Munfiqotusshifa,Andre Sugiyono

doi:10.32890/jtom2020.15.2.3

Irwan Sukendar, Munfiqotusshifa Munfiqotusshifa + Show 1 more

Open Access

https://doi.org/10.32890/jtom2020.15.2.3

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Abstract

This study aims to control medicine inventories by considering the expiration period and the product return using The Always Better Control (ABC) analysis and The handley within model of Economic Order Quantity (EOQ). The results of this study indicate that there are 21% of medicines or 22 types of medicines belonging to group A with the use of 74.64%. for group B there were 25% drugs or 28 types of drugs with a budget use of 15.31% of all medicines. Meanwhile, there are 55% of medicines or 60 types of medicines belonging to group C with the use of a budget of 10.05% of the total medicines and the calculation using the EOQ method by considering the expiration period and product returns in this research has a more optimal order size compared to the previous method so that it can minimize expired medicines and estimate which medicines will expire at the end of the cycle so that the total cost of supplies at the pharmacy is more optimal.

Highlights

AND LITERATURE REVIEW The development of increasingly modern science and technology has made competition between companies tighter, along with the many new companies that have sprung up in the same industry
The purpose of this study is to classify medicinal products based on the level of importance and size of investment, determine the optimal order size and estimate the medicines that will expire at the end of the cycle so as to reduce the total cost of supplies by using the Always Better Control (ABC) analysis and Economy Order Quantity (EOQ)
The results of the ABC analysis show that there are 22 types of generic medicines belonging to group (20%), 28 types of generic medicines belonging to group B (25%) and 60 types of generic medicines belonging to group C (55%). and based on the Economic Order Quantity (EOQ) method, the optimum order quantity for all generic medicines groups A, B and C varies from 13 - 2066 items per order

Summary

Introduction

AND LITERATURE REVIEW The development of increasingly modern science and technology has made competition between companies tighter, along with the many new companies that have sprung up in the same industry. The pharmaceutical industry is one of the industries that continues to grow with intense competition, namely the pharmacy. The tight competition of pharmacies so that good operational management is needed to keep the business running. Good management by carrying out an efficient, effective, and economical inventory planning. Pharmacy is included in the category of trading companies because its main activity is to purchase drug supplies from drug distributors or suppliers to be resold to consumers without changing the form or function of the goods. That the role of supply is an important component in pharmacy operational activities (Rachmawati, Syafirullah, & Faiz, 2020). According to (Apriyani & Muhsin, 2017) Inventory control is an activity in managing inventory to suit your needs and remain stable

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