ABC-VED matrix analysis of Government Medical College, Aurangabad drug store
DOI:
https://doi.org/10.18203/2394-6040.ijcmph20160434Keywords:
ABC, VED, ABC-VED matrix, Drug inventoryAbstract
Background: Substantial improvement can be brought about in the hospital inventory and drug expenditure by inventory control techniques. These include ABC (always, better and control), VED (vital, essential and desirable) and ABC-VED Matrix analysis. The objective of the study was to categorize the drugs based on cost and criticality aspects and identify those which require stringent managerial control.
Methods:The ABC analysis according to expenditure on drugs and VED analysis according to the criticality of the drugs was done for drug store of GMCH, Aurangabad for the period of April 2014 to March 2015. ABC-VED matrix analysis was done to classify drugs into Category 1, 2 and 3. Category 1 included drugs requiring top managerial control, whereas category 2 and 3 included drugs requiring middle and lower managerial control respectively.
Results: The total number of the drug items used by the medical store was 119. The total drug expenditure was Rs. 4,08,53,968. By ABC analysis, it was found that 16.8%, 21.8% and 61.4% items belonged to A, B and C category respectively, accounting for 70%, 20.1% and 9.9% of expenditure. VED analysis showed that 35.3%, 50.4% and 14.3% were V, E, and D category items respectively, accounting for 34.3%, 49.5% and 16.2% of expenditure. By ABC-VED matrix analysis, 47.9%, 43.7% and 8.4% were found to be category I, II and III items respectively, accounting for 82.3%, 16.5% and 1.2% of drug expenditure.
Conclusions:The study depicted the items belonging to category I which requires top managerial control, also the items belonging to categories II and III which require control by middle and lower managerial level respectively.
References
Doshi RP, Patel N, Jani N, Basu M. ABC and VED analyses of drug management in a government tertiary care hospital in Kerala. Explorations in Health Economics Paper. Presented in iHEA 6th World Congress, 2007.
Kant S, Pandaw CS, Nath LM. A Management Technique for Effective Management of Medical Store in Hospitals. Journal of Academic Hospital Administration. 1997;8:41-7.
Gupta R, Gupta KK, Jain BR, Garg RK. ABC and VED Analysis in Medical Stores Inventory; MJAFI. 2007;63:325-7.
Bhatnagar A. Textbook of Public Health and Community Medicine. First edition. Pune. Department of Community Medicine, Armed Forces Medical College, Pune in collaboration with WHO, India Office, New Delhi. 2009:335.
Mahatme MS, Dakhale GN, Hiware SK, Shinde AT, Salve AM. Medical store management: An integrated economic analysis of a Tertiary Care Hospital in Central India. J Young Pharm. 2012;4:114-8.
Junita I, Sari RK. ABC-VED Analysis and Economic Order Interval ( EOI ) -Multiple Items for Medicines Inventory Control in Hospital. 2012:678-89.
Khurana S, Chhillar N, Gautam VKS. Inventory control techniques in medical stores of a tertiary care neuropsychiatry hospital in Delhi. Health. 2013;5(1):8-13.
Devnani M, Gupta A, Nigah R. ABC and VED Analysis of the Pharmacy Store of a Tertiary Care Teaching, Research and Referral Healthcare Institute of India. J Young Pharm. 2010;2(2):201-5.
