A proposed policy of medication inventory system in pharmacy installation (case study in Semen Padang Hospital)

Hospital must be aware with the management in pharmacy especially on pharmacy inventory management in pharmacy installation. Semen Padang Hospital is a facilities that provides health service that has one pharmacy as the central place that is responsible for the procurement, storage and distribution of medication throughout the hospital. But in current conditions, Semen Padang Hospital could not fulfill the demand of the medicine for its patients because there is out of stocks for several medicines at the inventory and its affect to the period of getting those required medicines for the patients where most of them have a pending issue. The number of pending receipt of medicines significantly increase month-by-month and its increasing ten times greater from July until December. This condition happened because there is no policy to manage the procurement of medication in Semen Padang Hospital. To anticipate the stockout condition of medicines, the managerial implement some solutions. However, this solution gives a negative impact for its financial aspect and their quality of service. Based on the problem, a new inventory policy is needed to reduce the number of stockout medicines and to minimize the total cost of inventory that incurred by the hospital. First the medicines will be classified into three classes by using ABC analysis based on its value of investment. The proposed medication inventory policy for class A and vital medicines are solved using probabilistic inventory model (EOQ + Safety stock) and for class B and C (Non – vital) solved using Joint Replenishment. This models are used because of the assumptions are suitable with the actual condition in Semen Padang Hospital. By using proposed inventory policy, Semen Padang Hospital has saving money potential as much 63.27% of the cost spend based on the current policy that applied right now in the last three months in 2018 (October – December 2018