Inventory Management in Pharmacy Practice: A Review of Literature

In pharmacy operations, inventory is referred to as the stock of pharmaceutical products retained to meet future demand. Inventory represents the largest asset in pharmacy practice, and its value continues to rise because of the growth in variety and cost of pharmaceutical products. From both financial and operational perspectives, efficient inventory management plays a great role in pharmacy practice. Inventory management aims at reducing procurement and carrying costs, while maintaining an effective stock of products to satisfy customer and prescriber demands. The author reviews methods of inventory management in pharmacy practice, and highlights approaches by which the process of inventory management is evaluated. Factors affecting inventory management, including the role of information technology, are summarized. The author outlines, with recommendations, the impact of inventory mismanagement on patient safety.