katta amulya, vignan pharmacy college, guntur

1. PRESENTED BY:
KATTA. AMULYA
( IV Pharm-D )
13AB1T0014
UNDER THE GUIDANCE
MR. VARA PRASAD SAKA
ASSISTANT PROFESSOR
SUBMITTED TO:
CHAIRPERSON OF SEMINAR COMMITTEE
DR. K. RAJYA LAKSHMI
ASSOCIATE PROFESSOR
INVENTORY CONTROL

2. DEFINITION:-
 Inventory control is an effective way to keep control over losses
from misappropriation, damage, deterioration, evaporation &
carelessness.
 It can be defined as a scientific method of finding out how
much stock should be maintained in order to meet the
production demands & be able to provide right type of material
at right time, in right quantities & at competitive prices
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3. TECHNIQUES
 ABC Analysis { Always better control}
 VED Analysis { Vital Essential & Desirable}
 EOQ Method {Economic order quantity}
 Lead time method
 Safety stock method
 HML Classification {High Medium& Low}
 FSN Classification { Fast Slow & Non moving}
 SDE Classification { Scare Difficult Easy}
 Minimum & Maximum Stock levels
 Perpetual inventory control system
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4. ODJECTIVES:-
 To maintain sufficient inventory so as to avoid production held
up which leads to customer dissatisfaction loss of revenue &
increase in cost.
 Only required quantities of material will be stocked in the stores
& there is no need to keep the material in excess, which will
lead to blockage of money.
 Having control over the inventories the theft of small but costly
items can be checked.
 The main objective is to maintain inventory at appropriate level
so that it is neither excessive nor short of requirement
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5. FUNCTIONS :-
 Wastage of materials & theft of materials can be checked
 To obtain the supply of required quantity of materials at the
lowest cost of proper time.
 To keep the inventories as low as possible, this leads to
consistent price in market conditions.
 To maintain proper records to assess the stock position of the
materials.
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6. ABC ANALYSIS OR ABC METHOD:-
 Always better control- this analysis is for better & economical
control of items in inventory.
 Items are classified into 3 main categories.
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7.  The annual consumption value is calculated with the formula:-
(Annual demand) x (item cost per unit).
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Category Percentage of
items
Percentage of
overall value
Class A items 5-25% 40-80%
Class B items 20-40% 15-40%
Class C items 40-75% 5-20%

8. VIGNAN PHARMACY COLLEGE ,VADLAMUDI. 8
Class A Class B Class C
• Very strict control • Moderate control • Loose control
• Very low safety
stocks
• Low safety stocks • Highly safety stocks
• Maximum follow up • Periodic follow up • Follow up in
exceptional care
• Frequent ordering • Once in three
months
• Bulk ordering once
in six months

9. ADVANTAGES:-
 It ensures better control over costly items
 It helps in maintaining the stock in a better approach.
 It helps in reducing the storage costs
 It helps in developing scientific method of controlling
inventories.
DIS ADVANTAGES:-
 B & C categories can often get neglected &pile in huge stocks
or susceptible to loss and slackness in record control.
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10. VED ANALYSIS:-
VED stands for vital, essential and desirable.
 Vital items:- Without which an institution cannot function.
 Essential items:- With out which an institute can function, but
may affect the quality of service of some extent.
 Desirable items:- With out which an institution functioning
will not suffer & its management.
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11. CLASSIFICATION:-
VED classification is based on the criticality of drugs
May hospitals use a combination of ABC & VED system for a greater inventory
control.
Inventory control is much easier today than it was a few years
ago. The right inventory process includes three components namely
technology, buyer experience, charge management.
Example:-
Acetyl salicylic acid is available as Disprin tablets, Anacin tablets & Apc
tablets. Disprin tablets have high demand followed by others
Hence Disprin tablets are vital, Anacin is essential & Apc comes under
Desirable category.
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Vital drugs Essential drugs Desirable drugs
Safety standard should
be high, should never be
out of stock.
Should have minimum
possible stock.
If out of stock, do not
have a significant effect
on health care services.

12. REFERENCES
 ERIC. T. HERFINDAL, DICK R. GOURLEY, HART; Epilepsy
; Clinical pharmacy & Therapeutics; 8h
Edition; p.g.no: 1812 -
1820
 JOSEPH T. DIPIRO et.al; Epilepsy ; Pharmacotherapy A
Pathophysiologic approach; 6th
edition; p.g.no: 1050 – 1058
 www. medicinet. com
 www. healthline. com
 www. emedicinehealth.com
 www. medical newstoday. com
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