keywords: Inventory, model, probabilistic
The quality of the healthcare service of the Central Pharmacy in Benue State University Teaching Hospital (BSUTH) is constantly threatened by high demands placed by the various sub-pharmacies due to high influx of patients needing diverse healthcare service. The provision of solution to the aforementioned inventory problems in this tertiary healthcare system is not only relevant but a timely intervention. This was achieved in this work via the application of the Probabilistic EOQ model in determining the Economic Order Quantity (EOQ) and Re-order level (ROL) for each drug and hospital consumable. The result of the sensitivity analysis provides the hospital management with a distribution of the response of the economic order quantity and reorder level of each drug and hospital consumable to changes in their respective ordering costs. For a particular drug (D1), the EOQs and Reorder levels are 11 & 864, 24 and 810 and 34 & 786 units for the ordering costs of 2.5, 12.5 and 25 percent of drug actual costs per unit. It is hoped that this distribution will assist the hospital management in taking guided decision on the quantity of drug or hospital consumable that should be ordered, given the associated ordering cost. The study recommended that the model be used in the inventory management and planning of the Central Pharmacy of the Benue State University Teaching Hospital (BSUTH) Makurdi, Benue State.
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