Published: 2017-08-22

The ABC and VED analysis of the medical store of the tertiary care teaching hospital in Maharashtra, India

Sujata Dudhgaonkar, Sachin R. Choudhari, Narendra p. Bachewar


Background: Substantial amount of money need to be spent on medicines. The ABC-VED matrix is an attempt to evolve on proper inventory control systems.

Methods: The study was conducted at medical store of tertiary care hospital in FY 2016-2017. The annual drug consumption and expenditure incurred on each medicine were collected. The data were subjected to ABC and VED analysis. For a management purpose ABC-VED matrix was formulated by combining results of both the analysis.

Results: Total 124 drugs consumed budget of INR 2,03,24,881. In the ABC analysis, Category A, B and C were consisted of 18 (14.51%), 21 (16.94%) and 85 (68.55%) medicines respectively. Whereas in the VED analysis, 67 (54.03%) medicines were belongs to category V [INR 1, 61, 13, 992 (79.28%)], 38 (30.65%) medicines to Category E [INR 35, 26,095 (17.35%)] and 19 (15.32%) medicines to Category D [INR 6, 84,794 (3.37%)]. The ABC-VED Matrix shows that category I, II and III contained 69, 38 and 17 medicines respectively. The ADE for Category I was INR 1,71,80,643 (84.53%), for category II was INR 27, 29,919 (13.43%) and for a category III medicines was INR 4, 14,319 (2.04%). According to matrix, category I require topmost management control. Middle and lower managerial staff may supervise category II and category III respectively.

Conclusions: ABC-VED analysis helps us to know about the medicines which require more stringent monitoring and management, to narrow down on fewer medicines.


ABC, ABC-VED matrix, Annual drug expenditure (ADE), Inventory control, VED

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