V3I10P31

A REVIEW On Inventory Control in Hospital Pharmacy: Principles, Techniques, Challenges and Strategies for Optimizing Pharmaceutical Inventory

Shaik Mahammad Eliyas^1*, Srikala Kammireddy²

Abstract

Inventory control is an essential component of hospital pharmacy practice because medicines must remain continuously available while unnecessary expenditure, overstocking, expiry and wastage are minimized. Hospital pharmacies manage a wide range of pharmaceutical products that differ considerably in cost, clinical importance, rate of consumption, storage requirements and procurement lead time. Therefore, a single inventory-control method is rarely sufficient for effective management. Hospital pharmacy inventory requires a systematic approach that combines financial analysis, clinical prioritization, demand forecasting, procurement planning, storage management and regular monitoring.

The basic purpose of inventory control is to maintain the right medicine, in the right quantity, at the right place and at the right time without unnecessarily tying up hospital resources. Early work in hospital pharmacy emphasized the importance of controlling inventory levels and order quantities because poor inventory practices can substantially influence pharmacy operating costs. [1] Over time, several selective inventory-control techniques have been adopted, including ABC analysis, VED analysis, ABC–VED matrix analysis, HML analysis, FSN analysis, SDE analysis, EOQ, minimum–maximum stock systems and safety-stock approaches.

ABC analysis prioritizes medicines according to annual consumption expenditure, whereas VED analysis prioritizes medicines according to clinical criticality. Combining the two methods allows hospitals to identify medicines that are both financially significant and clinically important. [2] Recent evidence continues to demonstrate the usefulness of ABC–VED approaches in tertiary, secondary and public healthcare settings. [3] Digital inventory systems, barcode technologies, electronic procurement, automated stock monitoring and data analytics are also changing the way hospital pharmacies manage medicines.

This review discusses the principles, objectives, techniques, implementation strategies, challenges and future directions of hospital pharmacy inventory control. Particular attention is given to ABC, VED and ABC–VED analysis; procurement and storage; EOQ and minimum–maximum systems; stock-outs and wastage; digital technologies; supply-chain performance; forecasting; quality assurance; and the role of pharmacists. A practical framework for developing an effective hospital pharmacy inventory-control system is also proposed.

Keywords:

Hospital pharmacy, inventory control, pharmaceutical inventory, ABC analysis, VED analysis, ABC–VED matrix, EOQ, stock management, drug procurement, pharmacy supply chain.