A Joint Inventory Policy under Permissible Delay in Payment and Stochastic Demand (Case Study: Pharmacy Department of Pariaman Hospital)

Jonrinaldi, Jonrinaldi and Primadi, M. Yugo and Hadiguna, Rika Ampuh (2017) A Joint Inventory Policy under Permissible Delay in Payment and Stochastic Demand (Case Study: Pharmacy Department of Pariaman Hospital). In: 3RD INTERNATIONAL MATERIALS, INDUSTRIAL AND MANUFACTURING ENGINEERING CONFERENCE (MIMEC2017), Miri, Malaysia.

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Abstract

Inventory cannot be avoided by organizations. One of them is a hospital which has a functional unit to manage the drugs and other medical supplies such as disposable and laboratory material. The unit is called Pharmacy Department which is responsible to do all of pharmacy services in the hospital. The current problem in Pharmacy Department is that the level of drugs and medical supplies inventory is too high. Inventory is needed to keep the service level to customers but at the same time it increases the cost of holding the items, so there should be a policy to keep the inventory on an optimal condition. To solve such problem, this paper proposes an inventory policy in Pharmacy Department of Pariaman Hospital. The inventory policy is determined by using Economic Order Quantity (EOQ) model under condition of permissible delay in payment for multiple products considering safety stock to anticipate stochastic demand. This policy is developed based on the actual condition of the system studied where suppliers provided a certain period to Pharmacy Department to complete the payment of the order. Based on implementation using software Lingo 13.0, total inventory cost of proposed policy of IDR 137,334,815.34 is 37.4% lower than the total inventory cost of current policy of IDR 219,511,519.45. Therefore, the proposed inventory policy is applicable to the system to minimize the total inventory cost.

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