Optimizing Medicine Supply: An Economic Order Quantity Approach

Management, Hospital Management, Healthcare

Pharmacy service provides important and crucial support, while also acts as one of main revenue centers for hospitals. Mistakes in inventory indexation, will surely leads to greater problems for hospital management and financial aspects. Pagelaran Hospital is a hospital that remains practicing conventional methods to manage their medicine supply. The situation has brought inefficient medicine stock in Pagelaran Hospital, especially on medicine turnover ratio and purchase quantity. This study utilizes quantitative descriptive method, with medicine planning and procurement data of 2021. The obtained data were further analyzed by using EOQ method, which then compared with data before EOQ is implemented. After a careful EOQ calculation, it was identified that 19 A category medicines with a total of 3-65 items for each order. After the implementation of EOQ method, the study resulted inventory value decrease by IDR 409,914,601 and improvement on turnover ratio by 8 times. Based in the results of this study, it was indicated that the implementation of EOQ on medicine procurement will improve hospital financial efficiency, lower possibility of losses caused by low medicine turnover ratio, and improve profitability of the hospital by lowering holding cost due to inefficient stock management.

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