ABC-VED matrix model is one of the effective inventory management techniques for the drugs used in a pharmacy. This technique was used for dividing the total inventory drugs into three categories in the Rural Health Training Centre at Chunampet located at Kanchipuram district of Tamilnadu, attached to the Department of Community Medicine, PIMS. The Annual Drug Expenditure of the pharmacy of RHTC for the financial year 2016-17 was calculated by adding the individual drug cost for the year which amounted to Rs.8, 69,253. On following ABC analysis A,B and C categories had the following items as 22.82%(n=21drugs) ,20.65%(n=19 drugs) and 56.53%(n=52drugs) respectively in terms of quantity and amounting for about 69.05% (Rs.6,00,256), 20.22% (Rs.1,75,834) and 0.71% (Rs.93,161) respectively in terms of cost. On following VED analysis V, E and D categories had the following items as 28.26%(n=26 drugs),46.73%(n=43drugs) and 25.01%(n=23 drugs) respectively in terms of quantity and amounting for about 4.51% (Rs.39,284), 57.14% (Rs.4,96,715) and 38.33% (Rs.3,33,252) respectively in terms of cost. On following ABC-VED matrix model method of analysis Categories I, II, III were 49.96%, 42.38%, 7.66% respectively in terms of quantity and amounting for about 72.12%(Rs.6,26,926),  25.71% (Rs.2,23,443) and 2.17% (Rs.18,882) respectively in terms of cost. The ABC - VED matrix method combines the results of both ABC and the VED analysis culminating in the better management of the expenditure based on the priority needs of the drug. Thus this ABC-VED analysis plays a vital role in identifying the required quantity and category of drugs that has to be purchased and optimally utilized in the health centre. Here the category I drugs contributed to the maximum amount in terms of quantity and cost. This also helps in vigilant allocation of funds for procuring drugs and helps in eliminating unnecessary stocking and out of stock crisis situations. If this inventory technique is routinely followed in any health facility, the economic outcomes will be better.

REFERENCES

1.          Shah AG, Davda BK, Parikh SB, Bala DV. Always Better Control–Vital Essential Desirable analysis of the drugs used in health centres of Ahmedabad district. Int J Basic Clin Pharmacol. 2015 Juil;4(4):749-52. doi: 10.18203/2319-2003.ijbcp20150384.

2.          Devnani M, Gupta A, Nigah R. ABC and VED analysis of the pharmacy store of a tertiary careteaching, research and referral healthcare institute of India. J Y oungPharm. J Young Pharm. 2010;2(2):201-5. doi: 10.4103/0975-1483.63170, PMCID PMC3021698, PMID 21264126.

3.          Thawani VR, Turanker AV, Sontakke SD, Pimplekhute SV, Dakhale GN, Jaiswal KS, et al. Economicanalysis of drug expenditure Government Medical College Hospital, Nagpur. Indian J Pharmacol. 2004;36:15-9.

4.          Kant S, Pandaw CS, Nath LM. A management technique for effective management of medical storeinhospitals.medical store management technique. J Acad Hosp Adm. 1996;8-9(2-1):41-7. PMID 10166961.

5.          NIHFW module. Materials management (procurement and equipment management).theme. Block. 2009;I:4.

6.          Yilmaz F. The drug inventories evaluation of healthcare facilities using ABC and VED analyzes. Istanb J Pharm. 2018 Aug 1;48(2):43-8. doi: 10.5152/IstanbulJPharm.2018.398141.

7.          Mahatme M, Dakhale G, Hiware S, Shinde A, Salve A. Medical store management: an integrated economic analysis of a Tertiary Care Hospital in CentralIndia. J Young Pharm. 2012;4(2):114-8. doi: 10.4103/0975-1483.96626, PMID 22754264.

8.          Anand T, Ingle GK, Kishore J, Kumar R. ABC-VED analysis of a drug store in the Department of Community Medicine of a medical college in Delhi. Indian J Pharm Sci. 2013;75(1):113-7. doi: 10.4103/0250-474X.113543, PMID 23901172.

9.          Kumar A, Cariappa MP, Marwaha V, Sharma M, Arora M. Improving medical stores management through automation and effective communication. Med J Armed Forces India. 2016;72(1):61-6. doi: 10.1016/j.mjafi.2015.01.011, PMID 26900225.

10.       Kumar S, Chakravarty A. ABC–VED analysis of expendable medical stores at a tertiary care hospital. MedJArmedForces. Med J Armed Forces India. 2015;71(1):24-7. doi: 10.1016/j.mjafi.2014.07.002, PMID 25609859.

11.       Santhi G, Karthikeyan K. Recent review article on pharmaceutical inventory models. Int J Pharm Technol Research. 2016;9(5):435-43.

12.       Yang C, Wu L, Cai W, Zhu W, Shen Q, Li Z, Fang Y. Current situation, determinants, and solutions to drug shortages in Shaanxi Province, China: a qualitative study. PLoS One. 2016;11(10):e0165183. doi: 10.1371/journal.pone.0165183, PMID 27780218.

13.       Fang Y, Wagner AK, Yang S, Jiang M, Zhang F, Ross-Degnan D. Access to affordable medicines after health reform: evidence from two cross-sectional surveys in Shaanxi Province, western China. Lancet Glob Health. 2013;1(4):e227-37. doi: 10.1016/S2214-109X(13)70072-X, PMID 25104348.

14.       Leung NH, Chen A, Yadav P, Gallien J. The impact of inventory management on stock-outs of essential drugs in Sub-Saharan Africa: secondary analysis of a field experiment in Zambia. PLoS One. 2016;11(5):e0156026. doi: 10.1371/journal.pone.0156026, PMID 27227412.

15.       Kangwana BB, Njogu J, Wasunna B, Kedenge SV, Memusi DN, Goodman CA, Zurovac D, Snow RW. Malaria drug shortages in Kenya: a major failure to provide access to effective treatment. Am J Trop Med Hyg. 2009;80(5):737-8. doi: 10.4269/ajtmh.2009.80.737, PMID 19407116.