Determining the optimal inventory management policy for Naval Medical Center San Diego's Pharmacy

Abstract

Inventory management in Navy pharmacies uses outdated technologies and strategies and desperately needs updating. The management of inventory should never use a one-size-fits-all approach, and the optimal inventory management system was determined for Naval Medical Center San Diego (NMCSD). This thesis used demand data gathered from NMCSD to investigate the periodic review and continuous review systems with single item ordering and joint quantity ordering to determine which was best for NMCSD. The results of this study are that joint ordering with continuous review is less expensive than single item ordering and periodic review of inventory. It is recommended that NMCSD begin looking into the costs and how to begin implementing a continuous review system.