Cost optimisation of Malaysia medicine inventory through demand forecasting and nonlinear inventory model

Mathelinea, Devy (2021) Cost optimisation of Malaysia medicine inventory through demand forecasting and nonlinear inventory model. Masters thesis, Universiti Tun Hussein Malaysia.


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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.

Item Type: Thesis (Masters)
Subjects: T Technology > T Technology (General)
T Technology > TS Manufactures > TS155-194 Production management. Operations management
Divisions: Faculty of Technology Management and Business > Department of Business Management
Depositing User: Mrs. Sabarina Che Mat
Date Deposited: 06 Feb 2022 21:15
Last Modified: 06 Feb 2022 21:15

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