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Model Development to Determine Optimal Drugs Inventory in Indonesia Public Health Services

Published: 27 September 2019 Publication History

Abstract

This research discusses the management of drug inventory in a regional public hospital in Indonesia that is carried out to support the government's target regarding 95% of inventory in hospitals and health centers has to be fulfilled. The object hospital of this research also has two main targets in the drugs inventory management, namely quality control and cost control, both of which can be achieved by the efficient management of the drug inventory. One of the strategies to obtain it is to plan an efficient decision on the quantity (Q) of ordered drugs and the order time (T) to achieve minimum total cost of the drugs inventory management and the demand for drugs from patients is fulfilled. The hospital is important to carry out drug inventory management since the nature of this product is easily expired, storing excessive amounts of drugs could lead to deadstock. On the other hand, having shortages of drugs could be very dangerous for the patient who needed it. The method applied in this research is the ABC classification to determine the level of drug usage within one year and Mixed Integer Linear Programming (MILP) to obtain the minimum cost of the drugs inventory management. The results of this research are 50 types of drugs that categorized as category A from 526 drugs in the hospital, quantity of order (Q) of drugs, arrival lead time of drugs (T), the total cost of the 10 drugs inventory management from classification A which was reduced by IDR36.899.512 from the actual conditions, and this research also comparing the results of two mathematical models that consider and do not consider the drug expiration factors.

References

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  • (2022)Un modelo para predecir la demanda en farmaciasRedmarka. Revista de Marketing Aplicado10.17979/redma.2022.26.1.900726:1(1-14)Online publication date: 30-Jun-2022

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    cover image ACM Other conferences
    ICIBE '19: Proceedings of the 5th International Conference on Industrial and Business Engineering
    September 2019
    398 pages
    ISBN:9781450376532
    DOI:10.1145/3364335
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    • The Hong Kong Polytechnic: The Hong Kong Polytechnic University

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    Published: 27 September 2019

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    Author Tags

    1. ABC classification
    2. Health services
    3. drug inventory
    4. inventory management
    5. mathematical modeling
    6. mixed-integer linear programming
    7. pharmacy department

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    • (2022)Un modelo para predecir la demanda en farmaciasRedmarka. Revista de Marketing Aplicado10.17979/redma.2022.26.1.900726:1(1-14)Online publication date: 30-Jun-2022

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