ABC and VED Analysis of the Pharmacy Store of a Tertiary Care, Academic Institute of the Northern India to Identify the Categories of Drugs Needing Strict Management Control

Aim: To conduct ABC, VED and ABC-VED matrix analysis of the pharmacy store of the tertiary care, teaching, research and referral institute of the Northern India to identify the categories of drugs needing strict management control. Method: The ABC and VED (vital, essential, desirable) analysis of the pharmacy/drug store of Post Graduate Institute of Medical Education and Research (PGIMER), Chandigarh, India, was conducted to identify the categories of drugs needing strict management control. The annual consumption and expenditure incurred on each drug item of pharmacy for the year 2008-09 and 2009-10 were studied and inventory control techniques, i.e. ABC, VED and ABC-VED matrix analysis, were applied. Results: The drug formulary consisted of 416 items (year 2008-09) and 379 drug items (year 2009-10). The total annual drug expenditure (ADE) on items issued in 2008-09 & 2009-10 was Rs 6.04 crores to Rs 4.84 crores respectively. ABC analysis of pharmacy store for the year 2008-09 revealed 11.23%, 24.60% and 75.4% items as A, B and C category items, respectively, accounting for 70.19%, 19.83% and 9.98% of ADE of the pharmacy. VED analysis showed 12.30%, 61.5% and 26.2% items as V, E, and D category items, respectively, accounting for 19.56%, 71.12% and 9.33% of ADE of the pharmacy. However ABC analysis of pharmacy store for the year 2009-10 revealed 11.08%, 22.16% and 66.75% items as A, B and C category items, respectively, accounting for 70.04%, 19.93% and 10.02% of ADE of the pharmacy. VED analysis showed 12.40%, 60.16% and 27.44% items as V, E, and D category items, respectively, accounting for 25.05%, 66.91% and 8.04% of ADE of the pharmacy. Conclusion: The ABC and VED techniques should be adopted for optimal and rational use of resources and elimination of out-of-stock situations in the hospital pharmacy.