International Journal of Advanced Research in Computer and Communication Engineering

Abstract: This paper presents a broad overview of inventory management within the pharmaceutical industry. Effective inventory management helps organizations determine what products to order, when to order them, and in what quantities. It involves tracking stock from procurement to final sale, monitoring demand patterns, and adjusting accordingly to ensure adequate availability. While stockouts typically lead to lost sales and reduced profits for most businesses, in the pharmaceutical sector they can result in prolonged illness, fatalities, or even malpractice lawsuits—situations hospital administrators strive to avoid.
Therefore, precise oversight is essential to manage stock levels, monitor expiration dates, and maintain proper storage conditions. Tools such as barcode scanning at receipt, lot tracking for monitoring product movement within the facility, and accurate sales recording make this possible. Regardless of where a transaction takes place, updates to physical inventory must be reflected across the entire system.
Despite numerous theoretical inventory models proposed over the years, many have not been implemented by pharmaceutical organizations due to limited real-world testing. This creates a need to examine the practical relevance and impact of Inventory Theory by validating a simple inventory model in a high-demand hospital setting in India. This paper aims to evaluate the theory, explore its global applications in healthcare institutions, and highlight its advantages.

Keywords: Inventory Control, Pharmaceutical Sector, Supply Chain Optimization, Product Oversight, Capacity Planning, Mixed-Integer Linear Programming Model, RFID Technology, Optimization Techniques, Resource Utilization Efficiency, Strategic Planning Framework

Downloads: | DOI: 10.17148/IJARCCE.2025.1411110