Solution- Pharmacy's video: Pharmacy Practice 28 Drug Store Management Inventory Control Part 03 Inventory Control

Download the "Solution Pharmacy" Mobile App to Get All Uploaded Notes, Model Question Papers, Answer Papers, Online Tests and other GPAT Materials - https://play.google.com/store/apps/details?id=co.bolton.nqilv INVENTORY CONTROL Drug store management is based on principles of inventory control. Mismanagement of stores and non-applicability of Scientific and Modern techniques has been identified as the root cause of material storage in the majority of hospitals. The objective of Inventory Control (i) To supply drugs in time. (ii) To reduce investment in inventories and made effective use of capital investment. (iii) Efforts are made to procure goods at a minimum price without bargaining for quality. (iv) To avoid stock out and shortage. (v) Wastage is avoided Techniques of Inventory control / Methods Used for Analysis of Drug Expenditure (i) ABC analysis (ii) VED analysis (iii) EOQ (iv) Lead time (v) Buffer stock (i) ABC analysis ABC analysis is an inventory categorization technique. It is a basic tool with a selective approach for concentrating on the items. As per ABC analysis, the items are divided into three categories— "A items" with very tight control and accurate records, "B items" with less tightly controlled and good records, and "C items" with the simplest controls possible and minimal records. The ABC analysis provides a mechanism for identifying items that will have a significant impact on overall inventory cost, while also providing a mechanism for identifying different categories of stock that will require different management and controls. (ii) VED analysis is an inventory management technique that classifies inventory based on its functional importance. It categorizes stock under three heads based on its importance and necessity for an organization for production or any of its other activities. VED analysis stands for Vital, Essential, and Desirable. (iii) EOQ Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs. The formula assumes that demand, ordering, and holding costs all remain constant. (iv) Lead time The lead time is the sum of the supply delay and the reordering delay. The lead time is the applicable duration to calculate the lead demand, the safety stock, or the reorder point through a direct quantile forecast. The longer the lead time, the higher the total inventory level or the larger the safety stock, resulting in excess investment in inventories. (V) Buffer stock Buffer stock is used in emergencies to meet unforeseen demands. in other words, it refers to a minimum quantity of a particular item that must be kept in the stores at all times. Buffer stocks can be calculated using the following formula ; Buffer stocks= (Maximum consumption rate/day average- consumption rate/day)X lead time Buffer stocks need the following factors to be taken into consideration like; (i) Lead time (ii) Nature of item and rate of consumption (iii) Availability of substitutes (iv)Re-order level (v) Stock out the cost Get in touch with the solution by just clicking the following links- Facebook Group- https://www.facebook.com/groups/solutionpharamcy Mobile App - https://play.google.com/store/apps/details?id=co.bolton.nqilv New Channel (Pharmacy Dictionary) https://www.youtube.com/channel/UCt6OXVV_2oxf5DD0Mad6e9A E-Mail for official and other work - solutionpharmacy@gmail.com