A Data-Driven Approach to Inventory Control under Uncertain Demand for Pharmaceutical Products using Continuous Review Policy

  • Abdur Razzak Chowdhury Department of Industrial Engineering, Lamar University, Beaumont TX-77710, USA
  • Asif Mohammad Mithu Department of Electrical and Computer Engi, South Dakota School of Mines and Technology, Rapid City, SD 57701
  • Shibbir Ahmad Department of IPE, Shah Jalal University of Science and Technology, Sylhet-3100, Bangladesh.
  • A.B.M Abdul Malek Department of IPE, Shah Jalal University of Science and Technology, Sylhet-3100, Bangladesh.
DOI: https://doi.org/10.5281/zenodo.10700678
Keywords: Healthcare Inventory Management, Continuous Review Policy, Pharmaceutical Inventory Optimization, ABC Classification, Cost Reduction in Healthcare

Abstract

With the continuous growth of Bangladesh's GDP, healthcare expenditure has been steadily increasing, highlighting the importance of efficient resource management in healthcare facilities. Pharmacy, being a significant contributor to overall operational costs, plays a crucial role in ensuring high-quality patient care. Proper inventory management of pharmaceutical products is essential to meet patient demands while minimizing costs. This research focuses on analyzing pharmaceutical inventory management practices at Sylhet Women's Medical College Hospital, a tertiary healthcare facility, and their impact on customer service levels.

Secondary data from January 2016 to March 2018 was collected to assess the current inventory management practices. Through a comparison of actual inventory levels with ideal scenarios, a continuous review policy was implemented to optimize inventory levels. Additionally, cycle counting based on ABC classification was utilized to enhance inventory record accuracy and minimize waste. The analysis revealed that a significant portion of pharmaceutical items at the hospital were overstocked. Implementation of a continuous review process has the potential to yield substantial cost savings, estimated at BDT 2,815,482 (39% of total inventory value).

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Published
2024-02-24
How to Cite
Razzak Chowdhury, A., Mohammad Mithu, A., Ahmad, S., & Abdul Malek, A. (2024). A Data-Driven Approach to Inventory Control under Uncertain Demand for Pharmaceutical Products using Continuous Review Policy. GPH-International Journal of Business Management, 7(01), 32-51. https://doi.org/10.5281/zenodo.10700678
Issue
Vol 7 No 01 (2024): GPH-International Journal of Business Management
Section
Articles

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