Inventory Management in Medical Stores of Secondary Care Unit Service Level Hospitals in Northeast of Thailand
doi: 10.14456/mijet.2018.4
Keywords:
ABC-VED matrix, forecasting, EOQ, ROP, government hospitalAbstract
Non-profit organizations such as the government hospitals have a core function to provide high quality services for the people and societies. However, most hospitals encountered problems of high cost for inventory controlling for the drugs in the medical stores. This research presents the inventory management model that aims to improve efficient inventory control for the medical stores while enhancing the satisfaction of the service of the secondary care unit service level hospitals in the Northeast of Thailand. The proposed ABC-VED matrix analytical model was proposed to classify and define criticality for the drug items under study. The analytical results obtained from the proposed model showed that the vital and expensive drug category (category I) contained the highest cost by 70.85% (164,056,376 baht) of the total expenditure. In addition, the always used and essential drugs (AE) sub-category I was the most influent category on the cost of the drug control under the study, which affected by 95.75% (157,087,143 baht) of the total expenditure of category I. The analysis based exponential smoothing technique was also adopted to predict the demand of 95 drug items of AE sub-category I and was measured by the economic order quantity (EOQ) and re-order point (ROP) analytical model. The result finally showed that the proposed ABC-VED model could reduce the total costs by 0.046% (6,283,485.72 baht) compared to the conventional First Expire-First Oupt (FEFO) model.
References
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[27] DUANGPHUN, K., RAWEE, S. Supply chain management in health sector in Thailand: a case study. International Journal of Services, Economics and Management, 2010, Vol. 2(2), p. 211-224.
[28] CHAOUCH, M. 2014. Clustering-based improvement of nonparametric functional time series forecasting: Application to intra-day household level load curves. IEEE Trans. Smart Grid, 2014, Vol. 5(1), p. 411-419.
[29] PETER, Z. Time series forecasting using a hybrid ARIMA and neural network model. Neurocomputing, 2003, Vol. 50, p. 159–175.
[2] KAPLAN, R. NORTO, D. Transforming the balanced scorecard from performance measurement to strategic management. Accounting Horizons, 2001, 15 (1), p. 87-104.
[3] GIDEON, B. ELDA DU, T. 2017. The adoption of activity-based costing in private health care facilities in South Africa. Journal of Economic and Financial Science, 2017, 10(2), p.338-355.
[4] NIGAH, R., DEVNANI, M., GUPTA, A.K. ABC and VED Analysis of the pharmacy store of a tertiary care teaching. Journal of Young Pharmacists, 2010, Vol. 2, Issue 2, p. 201-205.
[5] THAWANI, V.R., TURANKA, A.V., SONTAKKE, S.D., PIMPALK-HUTE, S.V., DAKHALE, G.N., JAISWAL, K.S. Economic analysis of drug expenditure in government medical college hospital, Nagpur. Indian Journal of Pharmacology, 2004, Vol. 36, p. 15-19.
[6] GUPTA, S. KANT, S. Inventory control. Hospital Stores Management-An Integral Approach. Jaypee Brothers Medical Publishers (P) Ltd., New Delhi, India. 2000.
[7] KABACHNA, A.V., SHELKOVA E.V., KABACHNYI, O.G. Assessment of the rational use of budgetary funds on drug supply by healthcare institutions under the conditions of introduction of the formulary system. News of Pharmacy, 2015, 2(82), p. 35-39.
[8] KUMAR, M.S., CHARKRAVATY, B.A. ABC-VED analysis of expendable medical stores at a tertiary care hospital. Medical Journal Armed Forces India, 2015, 71, p. 24-27.
[9] MANIVEL, P., RANGANATHAN, R. 2016. Prioritized ABC-FSN analysis of inventory management in private and hospital pharmacy followed by questionnaire. International Research Journal of Pharmacy, 2016, 7(12), p.104-113.
[10] DEVNANI, M., GUPTA, A., NIGHA, R. ABC and VED analysis of the pharmacy store of a tertiary care teaching, research and referral healthcare institute of India. Journal of Young Pharmacist, 2010, Vol. 2, p. 201-205.
[11] CEYLAN, Z., BULKAN, S. Drug inventory management of a pharmacy using ABC and VED analysis. Eurasian Journal of Health Technology Assessment, 2017, Vol. 2, No. 1, p. 13-18.
[12] GUPTA, R., GUPTA, K.K., JAIN, B.R., GARG, R.K. ABC and VED analysis in medical stores inventory control. Medical Journal Armed Forces India, 2007, Vol. 63, p. 325-327.
[13] ANAND, T., INGLE, G.K., KISHORE, J., KUMAR, R. ABC-VED analysis of a drug store in the department of community medicine of a medical college in Delhi. Indian Journal of Pharmaceutical Sciences, 2013, Vol. 75(1), p.113-117.
[14] ANTONOGLOU, D., KASTANIOTI, C., NIAKAS, D. ABC and VED analysis of medical materials of a general military hospital in Greece. Journal of Health Management, 2017, Vol. 19(1), p. 170-179.
[15] PUND, S. B., KURIL, B. M., HASHMI, S. J., DOIBALE, M. K. DOIFODE, S.M. ABC-VED matrix analysis of government medical college, Aurangabad drug store. International Journal of Community Medicine and Public Health, 2016, Vol. 3(2), p. 469–472.
[16] SURYONO, S., SUSENO, J.E., MASHURI, C. SABILA, A.D., NUGRAHA, J.A.M., PRIMASIWI, M.H. RFID sensor for automated prediction of reorder point (ROP) values in a vendor management inventory (VMI). System Using Fuzzy Times Series, 2017, Vol. 23, p. 2398-2400.
[17] DUANGPAN, K. and WATCHARAPHONG, M. Developing inventory management in hospital. International Journal of Supply Chain Management, 2015, Vol. 4(2), p. 11-19.
[18] SULINEE, C., WASIN, L. Optimization and cost reduction of pharmaceutical inventory management: A case study of a government hospital in Pitsanulok. Journal of Community Development Research (Humanities and Social Sciences), 2015, Vol. 8(3), p. 139-153.
[19] BALLENTINE, R., RAVIN, R.L. GILBERT, J.R. ABC inventory analysis and economic order quantity concept in hospital pharmacy purchasing. American Journal of Hospital Pharmacy, 1976, Vol. 33(6), p. 552-555.
[20] LINA, A., KHALID, H. Healthcare logistics cost optimization using a multi-criteria inventory classification. In Proceedings of the 2011 International Conference on Industrial Engineering and Operations Management. Kuala Lumpur, Malaysia, 2011, p. 22-24.
[21] PITTAYACHAICHOOPARA, J. Inventory management using demand forecasting model for medical supplies in surgery department. In Proceedings of 23rd TheIIER International Conference. Singapore, 2015, p. 23-26.
[22] LEVIN, T., JAYAKRISNAN, S. Development and evaluation of a novel inventory management software for community pharmacy practice. International Journal of Innovative Pharmaceutical Sciences and Research, 2014, Vol. 2(4), p. 765-776.
[23] BUREAU of NON-COMMUNICABLE DISEASE, Department of Disease Control, Ministry of Public Health, Thailand. Thailand Healthy Lifestyle Strategic Plan Phase II 5-Year National Plan for Prevention and Control of Non-Communicable Diseases (2017-2021), 2017, Bangkok, Thailand.
[24] CHUPEN, V., USANEE, K., PANEE, S. Stock management of drug inventory control in the community pharmacy laboratory, Faculty of Pharmacy, Chiang Mai University. Thailand Journal of Pharmacy Science, 2003, Vol. 27(3-4), p. 139-148.
[25] SOPHON, M., DAUNGPHAN, K. National drug information sharing in the Thailand healthcare supply chain. Therapeutic Innovation & Regulatory Science, 2015, Vol. 49(6), p. 920-928.
[26] CHAOWALIT, M., LAKSANA, C., JIRAPORNCHAI, S. 2014. Purchasing and inventory management by pharmacist of a private hospital in northeast of Thailand. Inter Journal Pharmacy Science, 2014, Vol. 6(5), p. 401-405.
[27] DUANGPHUN, K., RAWEE, S. Supply chain management in health sector in Thailand: a case study. International Journal of Services, Economics and Management, 2010, Vol. 2(2), p. 211-224.
[28] CHAOUCH, M. 2014. Clustering-based improvement of nonparametric functional time series forecasting: Application to intra-day household level load curves. IEEE Trans. Smart Grid, 2014, Vol. 5(1), p. 411-419.
[29] PETER, Z. Time series forecasting using a hybrid ARIMA and neural network model. Neurocomputing, 2003, Vol. 50, p. 159–175.
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Published
2018-07-07
How to Cite
Kanyakam, S., Pimpa, W., & Kamlai, K. (2018). Inventory Management in Medical Stores of Secondary Care Unit Service Level Hospitals in Northeast of Thailand: doi: 10.14456/mijet.2018.4. Engineering Access, 4(1), 17–23. Retrieved from https://ph02.tci-thaijo.org/index.php/mijet/article/view/10.14456.mijet.2018.4
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