Q inventory model with product expiry and product return on pharmaceutical products at hospital kardinah

The existence of inventory for a company is essential and unavoidable, but its presence is often regarded as a waste. Therefore, inventory control is an important thing to do in order to optimally fulfilled product demand. Pharmaceutical unit is an installation support for the Hospital to provide drugs. Medicine is one of perishable products. Recently at department of pharmaceutical logistic in a Hospital, there are drugs that were not sold for 3 consecutive months a.k.a deathstock due to its slow-moving stock, so that the drugs stored too long in warehouse and lead to great inventory cost due to large storage cost. Drugs which will expire should be return to the supplier with an average lead time of five months, this raised the risk of stockout and high opportunity lost on the sale of these drugs. It is necessary to control supply by considering probabilistic demand, expiry and product return so it can minimize total cost of the inventory. The purpose of this research was to determine the optimal order quantity of drugs and minimizing the quantity of expired drugs to return. From model development and numerical calculations can be concluded that the inventory model was developed on this research solved the inventory problems which has probabilistic demand factor, expiry factor and product return factor.