ABC-VED matrix-a dual approach to efficient inventory control at a tertiary care teaching hospital in India

Background: Inventory control is based on criticality criteria (VED) and on cost criteria (ABC). This underlines the need of strategically planning, creating, and arranging the pharmacy to ensure effective clinical and administrative services. Methods: This retrospective observational cross-sectional study was conducted in the medical store of Government Medical College, Gondia, Maharashtra, over a one-year period (January-December 2023). A total of 142 drug items were analysed based on complete records of annual consumption and expenditure. ABC, VED, and ABC-VED matrix analyses were performed to categorize drugs. Data were analysed using Microsoft Excel 2019. Ethical clearance was obtained from the institutional ethics committee (approval number: 98/12/11). Results: Category A drugs (26%) consumed 71.1% of the budget, indicating high expenditure on fewer items. Categories B and C accounted for 32.2% and 40.8% of items, with 22.8% and 6.1% expenditure respectively. VED analysis showed that vital drugs (29.5%) accounted for 24.8% of costs, essential drugs (51.2%) for 47.9%, and desirable drugs (18.3%) for 27.3%. The ABC-VED matrix revealed that category I drugs (47.88%) consumed 90% of the budget, highlighting the importance of monitoring high-cost and life-saving items. Conclusions: ABC-VED needed to adopt as routine for optimal resource utility eliminates stock out situation in hospital medical store.