Development of Inventory Model to Reduce Total Inventory Costs at RSUD Mentawai
Keywords:
Inventory Policy, EOQ, Perishabel Product, Expiry Cost, Overstock
Abstract
The inventory policy problem is a problem in the inventory system related to how to ensure that each usage demand can be met at minimal cost. In the healthcare industry, it is imperative that the procurement and use of stock is not only cost-effective, but also that the required stock is always available. Discrepancies between total inventory and usage can lead to damage to BMHP inventory as the items have expiry dates, as well as excess total inventory costs. The problem of total inventory costs exceeding the budget occurs because overstock is 83% of the total need, overstock is caused by an excessive number of drug orders purchased. The purpose of this study is to reduce the total cost of inventory by considering expiry costs, inspection cost, shortage cost, order cost, holding cost using the EOQ method. The first stage in this study is to calculate the optimal order quantity value, then find the expected number of drug expirations. These results will be used to calculate the total inventory cost of five types of medical materials. for the inspection cost value, if the number of expired medical materials is above 20, the inspection cost value is not equal to zero. The calculation results found that the total inventory cost was Rp. 162,904,965, this cost is less than the actual cost of Rp. 185,843,346.00 with a difference of 12%.
References
[1] S. Dwivedi, A. Kumar and P. Khotiyal, "Inventory Management: A Tool of Identifying Items That Need Greater Attention for Control," IC Journal No: 7725, 2012.
[2] D. Anisya, M. H. Basri, A. A. Utama and F. Widjaja, "Inventory Level Improvement in Pharmacy Company Using Probabilistic EOQ Model and Two Echelon Inventory: A Case Study," The Asian Journal of Technology Management, pp. 229-242, 2020.
[3] F. Silva-Aravena, I. Ceballos-Fuentealba and E. Álvarez-Miranda, "Inventory Management at a Chilean Hospital Pharmacy: Case Study of a Dynamic Decision-Aid Tool," Mathematics Journal, pp. 2-20, 2020.
[4] A. Mardani, M. K. Saraji, A. R. Mishra and P. Rani, "A novel extended approach under hesitant fuzzy sets to design a ramework for assessing the key challenges of digital health interventions adoption during the COVID-19 outbreak," Applied Soft Computing Journal, 2020.
[5] L. Bam, Z. McLaren, E. Coetzee and K. V. Leipzig, "Reducing stock-outs of essential tuberculosis medicines: a system dynamics modelling approach to supply chain management," Haelth Policy Plan, pp. 1127-1134, 2017.
[6] D. Indayani and S. Subchan, "Optimal Control of Multi-Supplier InventoryManagement with Lead Time," International Journal Of Computing Science And Applied Mathematics, vol. 6, pp. 23-32, 2020.
[7] N. Novitasari and D. D. Damayanti, "Bullwhip Effect in Supply Chain for Perishable Product," Journal of Advanced management Science, pp. 90-96, 2018.
[8] P. Siriruk and K. Dungkhokkruad, "Ordering Quantity Decisions for Perishable Inventory Control Using Simulated Annealing," 4th International Conference on Industrial Engineering and Applications, 2017.
[9] A. H. Tai, Y. Xie, W. He and W.-K. Ching, "Joint inspection and inventory control for deteriorating items with random maximum lifetime," International Journal of Production Economics, pp. 144-162, 2019.
[10] D. Das, G. C. Samanta, A. Barman, P. K. De and K. K. Mohanta, "A recovery mathematical model for the impact of supply chain nterruptions during the lockdown in COVID-19 using two warehouse perishable inventory policies," Result in Control and Optimization, 2022.
[11] S. Chaira, E. Zaini and T. Augia, "Evaluasi Pengelolaan Obat pada Puskesmas di Kota Pariaman," Sains farmasi, vol. 3, pp. 1-17, 2016.
[12] Nugroho, Keperawatan Gerontik, Jakarta, 2019.
[13] P. Siriruk and K. Dungkhokkruad, "Ordering Quantity Decisions for Perishable Inventory Control Using Simulated Annealing," International Conference on Industrial Engineering and Application, pp. 5090-6775, 2017.
[14] C. Kouki, Z. Jemai and S. Minner, "A lost sales (r, Q) inventory control model for perishables with fixed lifetime and lead time," International Journal of Production Economics, pp. 143-157, 2015.
[15] H. A. Syawal and H. K. Alfares, "Inventory Optimization for Multiple Perishable Products with Dynamic Pricing, Dependent Stochastic Demand, and Dynamic Reorder Policy," 2020 Industrial & Systems Engineering Conference, 2020.
[16] J. N. Kohneh, M. Amirdadi and E. Teimoury, "An optimization framework for COVID-19 vaccine allocation and nventory management: A case study," Applied Soft Computing, 2023.
[17] R. Mousavi, M. Bashiri and E. Nikzad, "Stochastic production routing problem for perishable products: Modelling and a solution algorithm," Computers and Operations Research, 2022.
[18] Z. Sasvar, S. M. Al-e-hashem, K. Govinda and B. Bahli, "A novel mathematical model for a multi-period, multi-product optimal ordering problem considering expiry dates in a FEFO System," Transportation Research Part E, pp. 233-261, 2016.
[19] G. Dobson, E. J. Pinker and O. Yildiz, "An EOQ model for perishable goods with age-dependent demand rate," European Journal of Operational Research, pp. 84-88, 2017.
[20] Z. Azadi, S. D. Eksioglu, B. Eksioglu and G. Palak, "Stochastic optimization models for joint pricing and inventory replenishment of perishable products," Computers & Industrial Engineering, pp. 1-18, 2019.
[21] C. Franco and E. A. Lizarazo, "Optimization under uncertainty of the pharmaceutical supply chain in Hospital," Computers and Chemical Engineering, pp. 1-13, 2020.
[22] Z. T. Balkhi, "On the global optimal solution to an integrated inventory system with general time varying demand, production and deterioration rates," European Journal of Operational Research, pp. 29-37, 1999.
[23] H. Prasetyo and H. Munawir, "Pengembangan Model Persediaan Dengan Mempertimbangkan Waktu Kadaluwarsa Bahan Dan Faktor Incremental Discount," Jurnal Ilmiah Teknik Industri, pp. 49-56, 2005.
[24] L. Song and Z. Wu, "An integrated approach for optimizing location-inventory and location-inventory-routing problem for perishable products," International Journal of Transportation Science and Technology, pp. 148-172, 2023.
[25] V. Polotski, "Production Policy Optimization in the system with perishable products under seasonal demand," Conference paper archive, pp. 2689-2694, 2022.
[26] S. Hermalata and K. Annadurai, "Inventory models involving lead time crashing cost as an exponential function with ordering cost reduction dependent on lead time," Materials Today: Proceedings, pp. 1-17, 2020.
[27] D. Alfanda, D. Pujotomo and S. N. WP, "Pengendalian Obat Dengan Menggunakan Economic Order (Eoq) Probabilitas Berdasarkan Analisis Abc Dengan Mempertimbangkan Masa Kadaluwarsa Dan Pengembalian Produk," Jurnal Engineering, pp. 1-9, 2018.
[28] J. N. Kohnen, M. Amirdadi and E. Teimoury, "An optimization framework for COVID-19 vaccine allocation and inventory management: A case study," Applied Soft Computing, pp. 1-14, 2023.
[2] D. Anisya, M. H. Basri, A. A. Utama and F. Widjaja, "Inventory Level Improvement in Pharmacy Company Using Probabilistic EOQ Model and Two Echelon Inventory: A Case Study," The Asian Journal of Technology Management, pp. 229-242, 2020.
[3] F. Silva-Aravena, I. Ceballos-Fuentealba and E. Álvarez-Miranda, "Inventory Management at a Chilean Hospital Pharmacy: Case Study of a Dynamic Decision-Aid Tool," Mathematics Journal, pp. 2-20, 2020.
[4] A. Mardani, M. K. Saraji, A. R. Mishra and P. Rani, "A novel extended approach under hesitant fuzzy sets to design a ramework for assessing the key challenges of digital health interventions adoption during the COVID-19 outbreak," Applied Soft Computing Journal, 2020.
[5] L. Bam, Z. McLaren, E. Coetzee and K. V. Leipzig, "Reducing stock-outs of essential tuberculosis medicines: a system dynamics modelling approach to supply chain management," Haelth Policy Plan, pp. 1127-1134, 2017.
[6] D. Indayani and S. Subchan, "Optimal Control of Multi-Supplier InventoryManagement with Lead Time," International Journal Of Computing Science And Applied Mathematics, vol. 6, pp. 23-32, 2020.
[7] N. Novitasari and D. D. Damayanti, "Bullwhip Effect in Supply Chain for Perishable Product," Journal of Advanced management Science, pp. 90-96, 2018.
[8] P. Siriruk and K. Dungkhokkruad, "Ordering Quantity Decisions for Perishable Inventory Control Using Simulated Annealing," 4th International Conference on Industrial Engineering and Applications, 2017.
[9] A. H. Tai, Y. Xie, W. He and W.-K. Ching, "Joint inspection and inventory control for deteriorating items with random maximum lifetime," International Journal of Production Economics, pp. 144-162, 2019.
[10] D. Das, G. C. Samanta, A. Barman, P. K. De and K. K. Mohanta, "A recovery mathematical model for the impact of supply chain nterruptions during the lockdown in COVID-19 using two warehouse perishable inventory policies," Result in Control and Optimization, 2022.
[11] S. Chaira, E. Zaini and T. Augia, "Evaluasi Pengelolaan Obat pada Puskesmas di Kota Pariaman," Sains farmasi, vol. 3, pp. 1-17, 2016.
[12] Nugroho, Keperawatan Gerontik, Jakarta, 2019.
[13] P. Siriruk and K. Dungkhokkruad, "Ordering Quantity Decisions for Perishable Inventory Control Using Simulated Annealing," International Conference on Industrial Engineering and Application, pp. 5090-6775, 2017.
[14] C. Kouki, Z. Jemai and S. Minner, "A lost sales (r, Q) inventory control model for perishables with fixed lifetime and lead time," International Journal of Production Economics, pp. 143-157, 2015.
[15] H. A. Syawal and H. K. Alfares, "Inventory Optimization for Multiple Perishable Products with Dynamic Pricing, Dependent Stochastic Demand, and Dynamic Reorder Policy," 2020 Industrial & Systems Engineering Conference, 2020.
[16] J. N. Kohneh, M. Amirdadi and E. Teimoury, "An optimization framework for COVID-19 vaccine allocation and nventory management: A case study," Applied Soft Computing, 2023.
[17] R. Mousavi, M. Bashiri and E. Nikzad, "Stochastic production routing problem for perishable products: Modelling and a solution algorithm," Computers and Operations Research, 2022.
[18] Z. Sasvar, S. M. Al-e-hashem, K. Govinda and B. Bahli, "A novel mathematical model for a multi-period, multi-product optimal ordering problem considering expiry dates in a FEFO System," Transportation Research Part E, pp. 233-261, 2016.
[19] G. Dobson, E. J. Pinker and O. Yildiz, "An EOQ model for perishable goods with age-dependent demand rate," European Journal of Operational Research, pp. 84-88, 2017.
[20] Z. Azadi, S. D. Eksioglu, B. Eksioglu and G. Palak, "Stochastic optimization models for joint pricing and inventory replenishment of perishable products," Computers & Industrial Engineering, pp. 1-18, 2019.
[21] C. Franco and E. A. Lizarazo, "Optimization under uncertainty of the pharmaceutical supply chain in Hospital," Computers and Chemical Engineering, pp. 1-13, 2020.
[22] Z. T. Balkhi, "On the global optimal solution to an integrated inventory system with general time varying demand, production and deterioration rates," European Journal of Operational Research, pp. 29-37, 1999.
[23] H. Prasetyo and H. Munawir, "Pengembangan Model Persediaan Dengan Mempertimbangkan Waktu Kadaluwarsa Bahan Dan Faktor Incremental Discount," Jurnal Ilmiah Teknik Industri, pp. 49-56, 2005.
[24] L. Song and Z. Wu, "An integrated approach for optimizing location-inventory and location-inventory-routing problem for perishable products," International Journal of Transportation Science and Technology, pp. 148-172, 2023.
[25] V. Polotski, "Production Policy Optimization in the system with perishable products under seasonal demand," Conference paper archive, pp. 2689-2694, 2022.
[26] S. Hermalata and K. Annadurai, "Inventory models involving lead time crashing cost as an exponential function with ordering cost reduction dependent on lead time," Materials Today: Proceedings, pp. 1-17, 2020.
[27] D. Alfanda, D. Pujotomo and S. N. WP, "Pengendalian Obat Dengan Menggunakan Economic Order (Eoq) Probabilitas Berdasarkan Analisis Abc Dengan Mempertimbangkan Masa Kadaluwarsa Dan Pengembalian Produk," Jurnal Engineering, pp. 1-9, 2018.
[28] J. N. Kohnen, M. Amirdadi and E. Teimoury, "An optimization framework for COVID-19 vaccine allocation and inventory management: A case study," Applied Soft Computing, pp. 1-14, 2023.
Published
2023-07-31
How to Cite
Izzati, I., & Damayanti, D. (2023, July 31). Development of Inventory Model to Reduce Total Inventory Costs at RSUD Mentawai. International Journal of Innovation in Enterprise System, 7(02), 190-200. https://doi.org/https://doi.org/10.25124/ijies.v7i02.241
Section
Management and Systems Engineering
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
