Inventory Control Methods in a Long-Term Care Pharmacy
Comparisons and Time-Series Analyses
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Current inventory theory is based on the economic order quantity (EOQ) model. This model is based on use of simulated data and unrealistic formulae. Inventory replenishment processes are therefore commonly disrupted, and out-of-stock (OOS) events are unnecessarily frequent. This book details a quantitative, quasi-experimental, single-case study, OOS events at a large-volume, long-term care pharmacy with the goal of determining the best inventory control method to reduce OOS events. The case study compared four sequentially applied methods of inventory control: (a) a manual system without Six S...
Current inventory theory is based on the economic order quantity (EOQ) model. This model is based on use of simulated data and unrealistic formulae. Inventory replenishment processes are therefore commonly disrupted, and out-of-stock (OOS) events are unnecessarily frequent. This book details a quantitative, quasi-experimental, single-case study, OOS events at a large-volume, long-term care pharmacy with the goal of determining the best inventory control method to reduce OOS events. The case study compared four sequentially applied methods of inventory control: (a) a manual system without Six Sigma protocol, (b) a manual system with Six Sigma protocol, (c) a computer-assisted system with Six Sigma protocol, and (d) an automated system with Six Sigma protocol. Each inventory control method was applied and OOS data was recorded for an 11-week period. The case study uses this empirical data for hypothesis testing and statistical analyses to arrive at conclusions that are significant contributions to existing inventory theory.
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