Assessment of Pharmaceuticals Inventory Management by Using ABC-VEN and FSN-XYZ Matrix Analysis in West Shewa Zone, Oromia Regional State, Ethiopia

Abstract

Background: Effective inventory management is required to balance inventory expenditure against demands for medicines. This study is conducted on pharmaceuticals inventory management by using Always-Better-Control (ABC), Vital-Essential-Nonessential (VEN), ABC-VEN matrix analysis, fast moving-Slow moving-Nonmoving (FSN), XYZ and FSN-XYZ matrix analysis. Objective: The objective of the study was to assess pharmaceuticals inventory management by using ABC-VEN and FSN-XYZ matrix analysis in West Shewa Zone, Oromia, Ethiopia. Methods: A facility based cross sectional study was conducted in 15 selected health facilities of West Shewa zone from March 15 to May 31, 2019. Health facilities were categorized as hospitals and health centers, and simple random sampling was used to select samples. The quantitative data was analyzed by using MS Excel spreadsheet and qualitative data analyzed manually. Results: ABC analysis at health facilities of West Shewa zone revealed that 11.9%, 18.0% and 70.1% of items were classified as class A, B and C that consumed 70.34%, 20.0% and 9.72% of total pharmaceuticals expenditures (TPE) respectively. VEN analysis at this zone showed that 35.94%, 48.75% and 15.31% of items were identified as V, E and N that consumed 53.9%, 42.2% and 3.9% of TPE respectively. ABC-VEN matrix analysis indicated that category I, II and III items consumed 85.5%, 13.3% and 1.3% of TPE respectively. XYZ analysis of pharmaceuticals at zone showed that 70% of stock value was accounted by 17.0% of items that belonged to class X. FSN analysis at this zone revealed that around 20% of items categorized as fast moving accounted for 70% of total number of issues of items. FSN-XYZ matrix analysis of this zone showed that around 30% of items that contribute category I items carried 80% of stock value. Conclusion and recommendation: ABC-VEN matrix analysis of present study revealed that a majority of TPE was consumed by category I pharmaceuticals that need great attention for control. FSN-XYZ matrix analysis of this study revealed as category I items contributed around 80% of stock value of pharmaceuticals. ABC-VEN and FSN-XYZ matrix analysis should be conducted for efficient use of resources and for enhancing effective patient care service