Application of ABC-VEN Analysis for inventory management in Phrae hospital

Abstract

This study was a descriptive study. The purpose of this study to reduce costs and increase efficiency of inventory management in Phrae Hospital by using the ABC-VEN analysis. The sample is all medicines purchased in year 2022. ABC analysis grouped drugs according to budget used in conjunction with the VEN analysis grouped drugs according to their importance. The ABC-VEN analysis was used to construct a table of mutual relations in a matrix format. Using Microsoft Excel program for distribution statistics, percentage, frequency. The ABC analysis found that group A, B and C drugs were 24.79 %, 22.66 % and 52.55 %, respectively, using the budget of 79.90 %, 15.08 % and 5.02 % respectively. The VEN analysis revealed that 19.69 %, 75.35 % and 4.96 % of V, E and N drugs, respectively, using the budget of 19.76 %, 79.17 % and 1.07 %, respectively. The ABC-VEN matrix found that category 1 drugs used the highest budget at 84.55%. Including drugs in the AE group, using the highest budget at 64.26%, can reduce drug costs by promoting the use of generic drugs in place of original drugs together with drug prescription control. AV drugs, especially antibiotics, should be evaluated for their use and presented to the Pharmacy and Therapeutic Committee to formulate a policy to control the prescribing of drugs rationally. The AN drugs consider replacing drugs in the national list of essential drugs. The BV and CV should be kept as low as possible. In conclusion, ABC-VEN should be analyzed before the start of the fiscal year to ensure effective and efficient management of pharmaceutical inventory.