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March 13, 2026Journal Academy of Hospital Administration0 citationsOpen Access

Optimization of Inventory Management for Ensuring Timely Stock Procurement in a Multispecialty Hospital

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KPKushal PatelM S Ramaiah University of Applied SciencesDJDenny JohnM S Ramaiah University of Applied Sciences

Key Points

  • The aim is to enhance inventory management in a hospital to ensure timely procurement of medical stock.
  • Analyzed supply chain efficiency and procurement challenges in a multi-specialty hospital.
  • Utilized the reorder level (ROL) model to assess procurement processes for medical consumables.
  • Conducted a month-long evaluation of inventory practices and costs.
  • Identified potential cost savings of INR 35,000 (40.5%) on ordering costs.
  • Achieved savings of INR 516,177 (17%) on selected medical consumables.
  • Demonstrated improvements in inventory management could significantly reduce costs.

Abstract

Abstract Background: Enhancing hospital supply chain efficiency is vital for quality care and cost control. Key strategies include waste reduction, better communication, and addressing misalignment and overreliance on third parties to cut expenses. The scope of this study was to identify the challenges in obtaining stock on time, department-wise, i.e. the department of purchase and stores. Methodology: The study was conducted for 1 month (February 15 to March 15, 2024) in a multi-specialty tertiary care hospital in Bangalore, Karnataka, India. The reorder level (ROL) model was used to analyze data on medical consumables to obtain stock on time. The ROL was determined by a hospital’s lead time for work orders and demand during that period. Results: Twelve items were selected for the ROL model, ordered within 10 days, and a cost comparison was made. From the study, INR 35,000 (40.5%) could be saved on ordering costs, and INR 516,177 (17%) on the selected 12 medical consumables items could be saved. It clearly states that it helps reduce the overall cost of medical consumables. Conclusion: Based on this study, we found that enhancing hospital inventory management and distribution systems, especially for medical consumables, requires focusing on a few factors that may be the core cause of issues.

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Cite This Study

Patel et al. (2025) studied this question.

synapsesocial.com/papers/69b3ac8102a1e69014cce400https://doi.org/10.4103/jaha.jaha_7_25
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