This document discusses inventory control techniques. It begins by defining inventory control as keeping control over losses and maintaining the right type and quantity of materials. It then describes several techniques for inventory control including ABC analysis, VED analysis, EOQ method, and minimum/maximum stock levels. The objectives of inventory control are maintaining sufficient inventory to avoid production delays while not keeping excess stock. Key techniques like ABC analysis and VED analysis classify items to determine the appropriate level of control for each.

1. PRESENTED BY:
KATTA. AMULYA
( IV Pharm-D )
13AB1T0014
UNDER THE GUIDANCE
MR. VARA PRASAD SAKA
ASSISTANT PROFESSOR
SUBMITTED TO:
CHAIRPERSON OF SEMINAR COMMITTEE
DR. K. RAJYA LAKSHMI
ASSOCIATE PROFESSOR
INVENTORY CONTROL

2. DEFINITION:-
 Inventory control is an effective way to keep control over losses
from misappropriation, damage, deterioration, evaporation &
carelessness.
 It can be defined as a scientific method of finding out how
much stock should be maintained in order to meet the
production demands & be able to provide right type of material
at right time, in right quantities & at competitive prices
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3. TECHNIQUES
 ABC Analysis { Always better control}
 VED Analysis { Vital Essential & Desirable}
 EOQ Method {Economic order quantity}
 Lead time method
 Safety stock method
 HML Classification {High Medium& Low}
 FSN Classification { Fast Slow & Non moving}
 SDE Classification { Scare Difficult Easy}
 Minimum & Maximum Stock levels
 Perpetual inventory control system
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4. ODJECTIVES:-
 To maintain sufficient inventory so as to avoid production held
up which leads to customer dissatisfaction loss of revenue &
increase in cost.
 Only required quantities of material will be stocked in the stores
& there is no need to keep the material in excess, which will
lead to blockage of money.
 Having control over the inventories the theft of small but costly
items can be checked.
 The main objective is to maintain inventory at appropriate level
so that it is neither excessive nor short of requirement
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5. FUNCTIONS :-
 Wastage of materials & theft of materials can be checked
 To obtain the supply of required quantity of materials at the
lowest cost of proper time.
 To keep the inventories as low as possible, this leads to
consistent price in market conditions.
 To maintain proper records to assess the stock position of the
materials.
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6. ABC ANALYSIS OR ABC METHOD:-
 Always better control- this analysis is for better & economical
control of items in inventory.
 Items are classified into 3 main categories.
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7.  The annual consumption value is calculated with the formula:-
(Annual demand) x (item cost per unit).
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Category Percentage of
items
Percentage of
overall value
Class A items 5-25% 40-80%
Class B items 20-40% 15-40%
Class C items 40-75% 5-20%

8. VIGNAN PHARMACY COLLEGE ,VADLAMUDI. 8
Class A Class B Class C
• Very strict control • Moderate control • Loose control
• Very low safety
stocks
• Low safety stocks • Highly safety stocks
• Maximum follow up • Periodic follow up • Follow up in
exceptional care
• Frequent ordering • Once in three
months
• Bulk ordering once
in six months

9. ADVANTAGES:-
 It ensures better control over costly items
 It helps in maintaining the stock in a better approach.
 It helps in reducing the storage costs
 It helps in developing scientific method of controlling
inventories.
DIS ADVANTAGES:-
 B & C categories can often get neglected &pile in huge stocks
or susceptible to loss and slackness in record control.
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10. VED ANALYSIS:-
VED stands for vital, essential and desirable.
 Vital items:- Without which an institution cannot function.
 Essential items:- With out which an institute can function, but
may affect the quality of service of some extent.
 Desirable items:- With out which an institution functioning
will not suffer & its management.
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11. CLASSIFICATION:-
VED classification is based on the criticality of drugs
May hospitals use a combination of ABC & VED system for a greater inventory
control.
Inventory control is much easier today than it was a few years
ago. The right inventory process includes three components namely
technology, buyer experience, charge management.
Example:-
Acetyl salicylic acid is available as Disprin tablets, Anacin tablets & Apc
tablets. Disprin tablets have high demand followed by others
Hence Disprin tablets are vital, Anacin is essential & Apc comes under
Desirable category.
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Vital drugs Essential drugs Desirable drugs
Safety standard should
be high, should never be
out of stock.
Should have minimum
possible stock.
If out of stock, do not
have a significant effect
on health care services.

12. REFERENCES
 ERIC. T. HERFINDAL, DICK R. GOURLEY, HART; Epilepsy
; Clinical pharmacy & Therapeutics; 8h
Edition; p.g.no: 1812 -
1820
 JOSEPH T. DIPIRO et.al; Epilepsy ; Pharmacotherapy A
Pathophysiologic approach; 6th
edition; p.g.no: 1050 – 1058
 www. medicinet. com
 www. healthline. com
 www. emedicinehealth.com
 www. medical newstoday. com
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