The application of ABC-VED with multi-criteria analysis for drug inventory management

Effective drug inventory management is critical for ensuring the availability of essential medicines while minimizing costs and reducing wastages in healthcare institutions. This study presents a comprehensive approach that integrates Always Better Control (ABC) and Vital Essential Desirable (VED) analysis with multi criteria analysis to optimize pharmaceutical inventory control. By combining these two methods, inventory items are stratified into more meaningful categories for prioritization. Research is warranted in light of the case Hospital's ongoing inventory management problem. This project uses both qualitative and quantitative data collection approaches in order to design a drug inventory control system specifically for the pharmaceutical department at the case Hospital. A normalization technique is applied to avoid data quality issues, reduce data redundancy, improve data analysis, and enhance data security. The Economic Order Quantity (EOQ) model and forecasting methods are also applied. In the end, the inventory cost is decreased from 207,600 to 170,998B ETB, a noteworthy 17.63% improvement that can be applied in real-world situations. The proposed ABC-VED with multi criteria analysis framework enables healthcare facilities to allocate resources more efficiently, improve stock management, and ensure the uninterrupted supply of critical medications. This integrated approach supports evidence based policy making in pharmacy management and offers a scalable model adaptable to varied healthcare settings.