This document presents an ABC analysis of 10 drugs in a pharmacy inventory. ABC analysis involves ranking inventory items based on their total cost and dividing them into categories. The analysis showed: - Category A (10% of items, highest cost) included 1 drug, Amikacin injection - Category B (40% of items, intermediate cost) included 4 drugs - Category C (50% of items, lowest cost) included the remaining 5 drugs The ABC analysis allows the pharmacy to prioritize inventory management efforts based on cost.

1. Under the guidance of
Mr.G.RAMESH
DEPARTMENT OF
PHARMACY PRACTICE
ABC ANALYSIS
Presented By
SAI SIVANI.ANUMOLU
15AB1T0002
VIGNAN PHARMACY COLLEGE
(Approved by AICTE & PCI Affiliated to JNTU KAKINADA)
VADLAMUDI, GUNTUR DIST, ANDHRA PRADESH, INDIA, PIN: 522 213

2. INTRODUCTION
 The term INVENTORY is defined as“the
systematic control and regulation of purchase,
storage and usage of materials in such a way
so as to maintain an even avoiding excessive
investment in inventories. ” flow of production
and at the same time. Best method is ABC
analysis
 ABC classification that is powerful tool to
prioritize & classify items according to
inventory value can be considered.

3.  (ABC = Always Better Control) .This is based
on cost criteria.
 It helps to exercise selective control when
confronted with large number of items it
rationalizes the number of orders, number of
items & reduce the inventory.
 About 10 % of materials consume 70 % of
resources
 About 20 % of materials consume 20 % of
resources

4. A - ITEMS
 Small in number, but consume large
 Amount of resources; Must have:
 Tight control
 Rigid estimate of requirements
 Strict & closer watch
 Low safety stocks
 Managed by top management

5. C- ITEMS
 Larger in number, but consume lesser amount
of resources Must have:
 Ordinary control measures
 Purchase based on usage estimates
 High safety stocks
 ABC analysis does not stress on items those
are less costly but may be vital

6. B- ITEMS
 Intermediate items Must have:
 Moderate control
 Purchase based on rigid requirements
 Reasonably strict watch & control
 Moderate safety stocks
 Managed by middle level management

7. USES OF ABC ANALYSIS
 Utilizing ABC analysis makes managing
inventory and taking surveillance easier.
 With inventory value, items appearing on top of
the list are the one that takes special attention.
 Cost cutting is also smoothening by
concentrating small number of items whose
value contribution is high.
 The ABC tool is used to identify the vital few
from the trivial many, according to a defined set
of criteria.

8. STEPS FOR CALCULATING ABC ANALYSIS
 Multiply the annual number of items by the cost
per item to calculate the annual usage value for
each product.
 List each product in descending order according
to product usage value.
 Total up the usage value and the number of items.
 Translate each item and its usage value into the
fraction or percentage of the cumulative total

9. S.N
O
NAME OF DRUG DOSAGE
FORM
UNIT
COST
TOTAL
UNITS
1. Adrenaline Hcl – 1mg Injection 4.2 13000
2. Acarbose - 50mg Tablet 6 8300
3. Albendazole Tablet 10 5000
4. Amikacin – 250mg Ampoule 26 32000
5. Amoxicillin Capsule 26 30000
6. Atenolol Tablet 0.65 50000
7. Buprenorphine Ampoule 11.1 2000
PERFORM THE ABC ANALYSIS FOR FOLLOWING DRUGS:

10. 8. Carvidiol Tablet 1 3000
9. Cefotaxime Vial 30 3000
10. Cefelaxin Capsule 6 150000

11. DRUG ASCENDIN
G ORDER
CUMMULA
TIVE COST
% OF
TOTAL
COST
%OF
CUMMULA
TIVE
COST
carvediol 3000 7420 0.065647238 0.162367502
Buprimorphi
ne 0.3 mg
22200 82420 0.485789561 1.803548452
Atenolol 32500 278600 0.711178412 6.096440169
Acarbose 49800 368400 1.089744151 8.061480827
ABC ANALYSIS :

12. Albendazole
400 mg
50000 418400 1.094120633 9.15560146
Adernaline
1mg
injection
54600 473000 1.194779732 10.35038119
Amoxicillin
500mg
78000 614000 1.706828188 13.43580138
Cefotaxime
1gm
injection
90000 704000 1.96941714 15.40521852
Amikacin
250mg
injection
832000 2697880 18.20616734 59.03612349
Cefelaxin 900000 3597880 19.694171 78.73029489

13. 10%
40%
50%
ABC analysis
A B C

14. CONCLUSION:
Percentage of category A drugs:1(10%)
Percentage of category B drugs:4(40%)
Percentage of category C drugs:5(50%)