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

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.