A Proposed Inventory Policy of Drugs and Medical Supplies in Pharmacy Department of RSUD Pariaman

M., Yugo Primadi (2016) A Proposed Inventory Policy of Drugs and Medical Supplies in Pharmacy Department of RSUD Pariaman. Diploma thesis, Universitas Andalas.

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Abstract

Inventory is something that cannot be avoided by organizations. Fluctuation of demand and the unreliability of supplier make the organization needs inventory. The problem of inventory can be happened in service organizations. One of them is hospital. Hospital has a functional unit to manage the drugs and other medical devices such as disposable and laboratory material which is called Pharmacy Installation. This unit is responsible to do all of pharmacy services in the hospital. The problem that is happened in Pharmacy Installation of RSUD Pariaman where the inventory level is too high. Inventory is needed to keep the service level to the customers but it also can increase the cost of investment and holding the items if it is kept too much. Thus, there must be a policy to keep the inventory fit with the demand but still efficient. The management policy of inventory in Pharmacy Department of RSUD Pariaman will be conducted based on ABC analysis. Proposed inventory policy is determined by using Economic Order Quantity (EOQ) model under condition permissible delay in payment. This model is fit with the actual condition which supplier provided a certain period to complete the payment of the order. This permissible time can be used by pharmacy department to get benefit. Cost of capital as a part of holding cost is separated from holding cost itself and calculate as interest charge as many as 12,36%. There is no interest of investment that can be earned by Pharmacy Department (0%) because pharmacy department is a part of a public hospital (government instance). This model is modified so it can be used for multiple item and completed with the calculation of safety stock to anticipate the fluctuation of demand. Determination of optimal order interval is conducted by using software Lingo 13.0. The result of ABC classification shows that there are 155 items (14%) belonged to items-A, 226 items (20,5%) belonged to items-B, 676 items (61,2%) belonged to items-C, and the others about 47 items (4,3%) have no demand and it is classified to items-D. The result of proposed inventory policy shows that the total cost of inventory of proposed policy for IDR 97.841.632,75 which is lower 55% compared with the total cost of inventory by using current policy for IDR 219.511.519,45. The proposed policy cannot be implemented directly but it needs modifications such in term of box size that will influence the order quantity and order interval and number of order, which in the end it will influence the total cost of inventory. However, stay the proposed policy provided the lower cost because the model has considered the delay time in payment. Key words: EOQ, delay in payments, inventory, multiple item, safety stock.

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