Classification of Inventory Drugs Based on the FSN Analysis in a Private Hospital

Abstract

Objective: 1) to classify inventory drugs by applying the FSN analysis and improve drug inventory management; and 2) to evaluate the outcomes of inventory management after applying the FSN analysis to drug classification. Methods: This study was a 4 phases-action research in two repeated cycles with a period of two months in each cycle. The first phase involved planning for inventory management. The second phase was implementation consisting of a) a pilot of the planned activities; b) analysis of parameters used in drug classification based on the FSN analysis including lead time, minimum inventory (safety stock), re-order point, minimum order quantity, and days on hand; c) classification of drugs into 5 groups based on the FSN analysis including fast moving group (F), medium moving group (M), slow moving group (S), very slow moving group (V), and non-moving group (N); d) issuance of the policy for managing drug inventories in each group and e) assessment based on key performance indicators such as inventory value, drug shortage rate caused by purchasing. The third phase was observing changes in performance indicators. The fourth phase was the reflection by giving feedback on outcomes to staff and hospital administrators. Results: The average monthly value of drugs in groups F, M, S, V, and N was 29.06, 12.15, 17.74, 23.18, and 17.87 percent, respectively. The main inventory value decreased by 994,076.04. Baht. The drug shortage was 0.07 percent, which was lower than the target set by the hospital at 0.5 percent per month. Conclusion: Classification of drugs using the FSN analysis together with the issuance of appropriate policies on drug inventory management in each group reduces the rate of drug shortage, reduces inventory value and increases efficiency in inventory management.