Cost optimisation of Malaysia medicine inventory through demand forecasting and nonlinear inventory model
Managing inventory effectively is important for any organization, especially in the field of health service which plays major role in social development. However, inappropriate handling and management of inventory has the potential to severely hamper the health care services to patients. In view...
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| Format: | Thesis |
| Language: | English English English |
| Published: |
2021
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| Subjects: | |
| Online Access: | http://eprints.uthm.edu.my/6489/1/24p%20DEVY%20MATHELINEA.pdf http://eprints.uthm.edu.my/6489/2/DEVY%20MATHELINEA%20COPYRIGHT%20DECLARATION.pdf http://eprints.uthm.edu.my/6489/3/DEVY%20MATHELINEA%20WATERMARK.pdf |
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| Summary: | Managing inventory effectively is important for any organization, especially in the
field of health service which plays major role in social development. However,
inappropriate handling and management of inventory has the potential to severely
hamper the health care services to patients. In view of this issue, practicing a
systematic inventory management is very important to achieve the objectives of
minimizing the investment in inventory while balancing supply and demand.
Therefore, current study proposed and evaluated an inventory control model by
integrating nonlinear inventory model, forecasting techniques and decision tree for
pharmacies in Malaysia. The forecasting techniques were used to predict the
optimum order quantity and nonlinear inventory model applied to minimize the total
inventory cost in order to achieve the research objectives. The end result of the
inventory control model was evaluated by decision tree analysis. Secondary data
were collected from Malaysian Statistics on Medicines reports. The collected data
were analyzed by QM for Windows software and Microsoft Excel. This research
concluded that forecasting techniques play major role in minimizing the total
inventory cost. Furthermore, a nonlinear inventory model was developed based on
number of inventory order and applied to the forecasted and actual data to compute
total inventory cost. It shows that the nonlinear inventory model and forecasting
techniques proposed in this research were very suitable in predicting the budget for
drugs in future. Finally, this research is highly potential in providing benefits in
terms of business practices and the development of science which provides ideas on
inventory system for pharmacies in Malaysia particularly using forecasting
techniques and nonlinear inventory model. |
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