Inventory Management Optimization and Its Impact on Service Quality in Pharmacy Chains
DOI:
https://doi.org/10.37899/mjdm.v2i4.256Keywords:
Inventory Management, Pharmacy Chains , ABC VED Analysis, Service Quality, Customer SatisfactionAbstract
This study examines the effect of inventory management optimization on service quality in pharmacy chains, focusing on operational efficiency and patient satisfaction. A quantitative approach with descriptive and explanatory design was applied. Inventory optimization employed ABC VED analysis to classify medicines and demand forecasting to predict stock requirements. Service quality was measured using the Customer Satisfaction Index (CSI) supported by SERVQUAL dimensions. Data were collected from pharmacy records and customer surveys over six months, divided into three months before and three months after optimization. The analysis compared stockout rates, average inventory holding costs, and CSI. Results indicate improvement after optimization. Stockout rates declined from 17 percent to 7 percent. Inventory holding costs decreased by approximately 27 percent, from USD 20,000 to USD 14,500. Meanwhile, CSI increased from 70 percent to 85 percent, reflecting better reliability and availability. These findings show that inventory optimization reduces inefficiencies while enhancing service quality. Inventory management optimization is essential for cost control and a driver of patient-centered service quality. By integrating ABC VED analysis and demand forecasting, pharmacy chains can achieve efficiency and customer satisfaction.
References
Ahmed, R., & TAMIM, T. R. (2025). Enhancing medication safety: the role of community and hospital pharmacists in modern healthcare systems. Radinka Journal of Health Science, 2(3), 328-355. https://doi.org/10.56778/rjhs.v2i3.418
Akinyemi, M., & Onukwulu, E. C. (2024). Conceptual Framework for Advances in Client Care: Emotional and Social Support in Hospitality and Logistics Environments. Comprehensive Research and Reviews Journal, 2(2), 23-29. https://doi.org/10.57219/crrj.2024.2.2.0032
Al Shamry, M. D., Al-Ruwaili, H. Q., Alanazi, M. H., Al-Sharari, B. N., Alharb, O. E., & Alotaibi, S. M. (2024). The role of health services management in building sustainable healthcare systems: A systematic review. African Journal of Biomedical Research, 27(3), 1005-1011. https://doi.org/10.53555/AJBR.v27i3.3307
Alghamdi, T. A., Zahrani, H. Y., Aljalis, M. I., Nawab, N. A., Alghamdi, T. A., Al-Suraie, R. A., ... & Al Fadie Al Masoud, N. A. (2024). The Evolving Role of Pharmacists in Patient care: Trends and Innovations. Journal of International Crisis & Risk Communication Research (JICRCR), 7.
Al-Hourani, S., & Weraikat, D. (2025). A Systematic Review of Artificial Intelligence (AI) and Machine Learning (ML) in Pharmaceutical Supply Chain (PSC) Resilience: Current Trends and Future Directions. Sustainability, 17(14), 6591. https://doi.org/10.3390/su17146591
Almalky, S. A., Miny, A. S. S., Hakami, F. A. O., ALQARNI, A. A. A., ALLAHYANI, K. M. A., Alabsi, S. H. N., ... & Alanazi, N. S. M. (2024). The role of nursing in improving medical inventory management and quality of work in health facilities: a systematic review. Journal of International Crisis and Risk Communication Research, 7(S5), 443. https://doi.org/10.63278/jicrcr.vi.2412
Anthony, O. C., Oluwagbade, E., Bakare, A., & Animasahun, B. (2024). Evaluating the economic and clinical impacts of pharmaceutical supply chain centralization through AI-driven predictive analytics: comparative lessons from large-scale centralized procurement systems and implications for drug pricing, availability, and cardiovascular health outcomes in the US. Int J Res Publ Rev, 5(10), 5148-5161. https://doi.org/10.55248/gengpi.6.0425.14152
Bharadwaj, N. K. (2024). Application of Optimization Techniques to Solve Inventory Problems. International Journal of Mathematics Trends and Technology-IJMTT, 70. https://doi.org/10.14445/22315373/IJMTT-V70I8P103
Bilal, A. I., Bititci, U. S., & Fenta, T. G. (2024). Effective supply chain strategies in addressing demand and supply uncertainty: A case study of Ethiopian pharmaceutical supply services. Pharmacy, 12(5), 132.
Cortez, J. L. A., Meza, J. D. P., Ramírez, A. M. P., Puentes, S. C., González, R. D. C., Velásquez, C. P. M., ... & Hernández, I. M. J. (2025). Global Shortages of Essential Medicines: Public Health Challenges and Policy Solutions. IECCMEXICO, 3(1). https://doi.org/10.64784/011
Desai, R. (2024). Optimizing pharmacy operations: Strategies for efficiency and quality care. International Journal of Research and Innovations in Pharmacy Practice, 1(1).
Desai, R. (2024). Optimizing pharmacy operations: Strategies for efficiency and quality care. International Journal of Research and Innovations in Pharmacy Practice, 1(1).
Djamil, M., Permana, D., & Imaningsih, E. S. (2024). Analysis of the implementation of intelligence strategies in hospital pharmacy departments. International Journal of Law, Policy, and Governance, 3(1), 1-17. https://doi.org/10.54099/ijlpg.v3i1.877
Dwivedi, V., Keswani, M., & Khedlekar, U. K. (2025). Optimizing healthcare supply chains strategically: analyzing the impact of COVID-19 on pharmaceutical inventory costs through the integration of evidence theory and hybrid evolutionary algorithms. Opsearch, 1-38.
Hagos, Z. (2025). Patient Satisfaction and Perception of Services Provided by Community Pharmacies in Sidama, Ethiopia. Ethiopia (August 07, 2025). https://dx.doi.org/10.2139/ssrn.5382557
Kalumanga, V. E., & Mwita, O. N. (2024). Perceptions on effectiveness of EPICOR system on pharmaceutical inventory management in Tanzania: A case study of Medical Stores Department (MDS) in Dar es Salam. NG Journal of Social Development, 13(1), 117-132. https://doi.org/10.4314/ngjsd.v13i1.8
Kodom, R. V., & Netangaheni, R. T. (2024). Challenges in accessing patient-centered care and patient empowerment in selected Ghanaian hospitals. Health SA Gesondheid, 29(1). https://doi.org/10.4102/hsag.v29i0.2623
Meena, D. K., & Mathaiyan, J. (2024). Unveiling supply chain efficiency: exploring ABC-VED analysis studies on drug inventory management in India. Int J Basic Clin Pharmacol, 13(4), 563-7. https://doi.org/10.18203/2319-2003.ijbcp20241660
Mohamed, A. E. (2024). Inventory management. In Operations Management-Recent Advances and New Perspectives. IntechOpen. https://doi.org/10.5772/intechopen.113282
Ngigi, N., & Ndeto, C. (2024). Inventory optimization and performance of pharmaceutical firms in Kenya. International Journal of Social Sciences Management and Entrepreneurship (IJSSME), 8(1).
Ogbuagu, O. O., Mbata, A. O., Balogun, O. D., Oladapo, O., Ojo, O. O., & Muonde, M. U. R. I. D. Z. O. (2024). Community-based pharmacy interventions: A model for strengthening public health and medication accessibility. IRE Journals, 7(10), 477-482. https://doi.org/10.56778/rjhs.v2i3.418
Rodriguez, J. M., & Palallos, L. (2024). Imbento-Ry: Assessing the Role of Service Crew Commitment to Inventory Counting on Inventory Management Efficiency in Quick Service Restaurant. International Journal of Management, Knowledge and Learning, 13, 10-53615. https://dx.doi.org/10.53615/2232-5697.13.253-271
Sallam, M. (2024). Enhancing hospital pharmacy operations through Lean and Six Sigma strategies: A systematic review. Cureus, 16(3).
Sallam, M. (2024). Enhancing hospital pharmacy operations through Lean and Six Sigma strategies: A systematic review. Cureus, 16(3). https://doi.org/10.7759/cureus.57176
Shahbahrami, E., Kalhor, R., Amerzadeh, M., Hasani, M., & Kiani, M. (2024). A dynamic management model for sustainable drug supply chain in hospital pharmacies in Iran. BMC Health Services Research, 24(1), 1205. https://doi.org/10.1186/s12913-024-11692-8
Sharma, V. K. (2025). Analytics-Enhanced Specialty Drug Distribution: Optimizing Patient Outcomes Through Data-Driven Approaches. Journal of Computer Science and Technology Studies, 7(7), 118-129. https://doi.org/10.32996/jcsts.2025.7.7.10
Soyege, O. S., Nwokedi, C. N., Tomoh, B. O., Mustapha, A. Y., Mbata, A. O., Balogun, O. D., & Forkuo, A. Y. (2024). Comprehensive review of healthcare innovations in enhancing patient outcomes through advanced pharmacy practices. International Journal of Scientific Research in Science, Engineering and Technology, 11(6), 425-437. https://doi.org/10.32628/IJSERSET242434
Tefera, B. B., Tafere, C., Yehualaw, A., Mebratu, E., Chanie, Y., Ayele, S., & Adane, S. (2022). Availability and stock-out duration of essential medicines in Shegaw Motta general hospital and Motta Health Centre, North West Ethiopia. PLoS One, 17(9), e0274776. https://doi.org/10.1371/journal.pone.0274776
Teli, E. S., Bhangale, C., Momin, K., Ramanand, J., & Mahajan, H. (2022). Application of ABC-VED analysis for inventory control in drug store of a tertiary care hospital of North Maharashtra. Perspectives, 10(2), 62. https://doi.org/10.47799/pimr.1002.13
Thomsen, P. B. (2024). Delays in Care Due to Inaccessibility of Essential Medical Items in Surgical Unit. Master's Projects and Capstones. 1835.
Zuma, S. M. (2022). Assessment of medicine stock-outs challenges in public health services. Africa’s Public Service Delivery and Performance Review, 10(1), 578. https://doi.org/10.4102/apsdpr.v10i1.578
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Maroon Journal De Management
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
This journal provides direct open access to it's content on the principle that research is freely available to the public supporting a greater global exchange of knowledge. All articles published by Open Access will soon and forever be free for everyone to read and download. The license options defined for this journal are Creative Commons Attribution-ShareAlike (CC BY-SA)
