ABC and VED analyses in inventory management: A case study of a public hospital

Inventory management is of critical importance for the efficiency and sustainability of healthcare services. The uninterrupted delivery of healthcare services depends on the effective management of inventory. Failure to carry out inventory control activities effectively may increase costs due to excessive stock levels and negatively affect the profitability of healthcare institutions. The aim of this study is to classify medical supplies according to their order of priority by using ABC and VED analysis methods in the evaluation of inventory management. Within the scope of the research, the dataset consisted of 122 inventory items used in a district state hospital operating in Gümüşhane Province. In this study, ABC and VED analyses, which are among the multi-criteria decision-making techniques, were used to classify and analyze the data. ABC analysis classifies inventory items according to their annual consumption value, whereas VED analysis determines their level of critical importance. According to the findings, a small number of inventory items accounted for a large proportion of the total cost, and items of vital importance should be prioritized in inventory management. Furthermore, the ABC–VED matrix, developed by combining ABC and VED analyses, enabled more effective prioritization of inventory items based on both their cost and criticality levels. In conclusion, the combined use of ABC and VED analysis methods contributes to a more effective, balanced, and sustainable inventory management system in healthcare institutions.