EVALUATING POOLED PROCUREMENT AND INVENTORY MANAGEMENT FOR ESSENTIAL MEDICINES IN NIGERIA

This study examines how pooled procurement and a shared stock system across four states in an African country can improve access to essential medicines. Our analysis begins with a review of existing practices and introduces a pooled procurement approach integrated with a Continuous Review Policy (CRP). By comparing the current inventory policies of states with CRP model, we explore potential benefits, including cost reduction and improved stock management. We then designed two simulation scenarios: states following the CRP model independently, and states following CRP with access to shared stock. Both scenarios were tested under normal demand and a 50% surge in demand in one state. The results demonstrate the significant advantages of pooled procurement and shared stock systems, particularly in mitigating the impact of demand spikes and improving inventory availability.