A management technique for effective management of medical store in hospitals. Medical store management technique.

Background: Almost one third of hospital' annual budget is spent on buying material and supplies including medicines. There is wide variation in cost of these items and effective management of store is necessary to ensure optimal use of money spent.

Objectives: (i) To explore the feasibility of alphabetical analysis (where items are classified into A, B and C categories depending on their annual consumption value) in effective management of a medical store and to compare the present (fixed period re-order) and the proposed (fixed quantity re-order) as alternative inventory management technique.

Methods: Using multistage random sample technique, two sub-categories out of total of 37 listed in stock register (medicine) of a large hospital of Delhi were selected for detailed analysis. Alphabetical (ABC) analysis based on total annual consumption value of different items was done. Six medicines, the first and the last from each of the ABC categories, were also analysed for fixed quantity re-order.

Results: It was observed that ABC analysis, if practised, would allow effective control over two third of the total expenditure by controlling only one fourth of the items. The existing order size (based on fixed period re-order) was more than three times order size if based on fixed quantity re-order.

Conclusions: Alphabetical analysis is a feasible and efficient technique for effective management of store in hospitals. Considerable financial savings is possible if the order size is based on fixed quantity re-order.

Recommendations: The Assistant Store Officer should apply alphabetical analysis for more efficient management of the medical store. The present practice of fixed period re-order should be replace by fixed quantity re-order.