ABC-VED matrix analysis of Government Medical College, Aurangabad drug store

Abstract

Background: Substantial improvement can be brought about in the hospital inventory and drug expenditure by inventory control techniques. These include ABC (always, better and control), VED (vital, essential and desirable) and ABC-VED Matrix analysis. The objective of the study was to categorize the drugs based on cost and criticality aspects and identify those which require stringent managerial control.Methods:The ABC analysis according to expenditure on drugs and VED analysis according to the criticality of the drugs was done for drug store of GMCH, Aurangabad for the period of April 2014 to March 2015. ABC-VED matrix analysis was done to classify drugs into Category 1, 2 and 3. Category 1 included drugs requiring top managerial control, whereas category 2 and 3 included drugs requiring middle and lower managerial control respectively.Results: The total number of the drug items used by the medical store was 119. The total drug expenditure was Rs. 4,08,53,968. By ABC analysis, it was found that 16.8%, 21.8% and 61.4% items belonged to A, B and C category respectively, accounting for 70%, 20.1% and 9.9% of expenditure. VED analysis showed that 35.3%, 50.4% and 14.3% were V, E, and D category items respectively, accounting for 34.3%, 49.5% and 16.2% of expenditure. By ABC-VED matrix analysis, 47.9%, 43.7% and 8.4% were found to be category I, II and III items respectively, accounting for 82.3%, 16.5% and 1.2% of drug expenditure.Conclusions:The study depicted the items belonging to category I which requires top managerial control, also the items belonging to categories II and III which require control by middle and lower managerial level respectively.