Inventory Analysis in a Private Dental Hospital in Bangalore, India

There are various approaches for inventory management. Of all the inventory control systems, ABC (Always, Better, Control) and VED (Vital, Essential, Desirable) matrix is most suitable for dental stores. We could not find any literature pertaining to inventory analysis in a private dental hospital. So, we conducted a study in a private dental hospital in Bangalore, Karnataka, India.

The present study aimed at evolving an inventory control plan for a private dental institution by categorizing the materials utilizing an ABC-VED coupling matrix.

The study analysed the annual consumption, the expenditure incurred for the dental consumables and developed a matrix based on ABC and VED analysis to narrow down the group of consumables for managerial monitoring.

Of the 215 consumables used 13.5% (A category) consumed 70% of total annual expenditure. About 21% of the consumables (Category B) consumed 20% and 65.5% (C category) accounted for 10% of the annual expenditure. The VED analysis found 47% consumables as vital, 37.6% as essential and 15.4% as desirable category. ABC-VED matrix analysis categorized 51.6%, 33.5% and 14.8% of consumables as category I, II and III, respectively.

Categorization by the ABC-VED coupling matrix model helps to narrow down on fewer consumables. The management of Category I consumables was monitored by top management resulting in better control on the annual expenses and at the same time making available the vital consumables. Category II was monitored by middle and Category III at lower managerial level.