Economic Order Quantity (EOQ) Method Analysis, ABC Classification and Vital, Essential and Non Essential (VEN) Analysis of Medicines (Case Study

— This study aimed to analyze the effectiveness of the economic order quantity (EOQ) method, ABC classification, and vital, essential, and non-essential (VEN) analysis on drug supplies at the Dharma Pharmacy Clinic, Tangerang. The study used a quantitative descriptive method, and interviews were analyzed using QM software for Windows V. The study analyzed the trends in the supply of vital (V), essential (E), and non-essential (N) drugs, the frequency of purchasing drug preparations, the optimal amount of drug needs, and the total cost of supplies.The results of the study indicated that out of 160 drug units, 66 units belonged to the vital drug group, 58 units to the essential drug group, and 36 units to the non-essential drug group. The ABC classification analysis based on the investment value revealed that group A from the vital drug group had a volume of 17 units, group A from the essential drug group had a volume of 13 units, and group A from the non-essential drug group had a volume of 6 units. Group B of the vital drug group had a volume of 18 units, group B of the essential drug group had a volume of 14 units, and group B of the non-essential drug group had a volume of 7 units. Group C of the vital drug group had a volume of 31 units, group C of the essential drug group had a volume of 31 units, and group C of the non-essential drug group had a volume of 23 units. Using the EOQ method, the study determined that the cost of purchasing a drug unit for a class of vital drugs was Rp. 1,069,223,104, with the lowest EOQ value of 1 and the highest of 105. For the essential drug class, the cost was Rp. 280,472,456, with the lowest EOQ value of 1 and the highest of 41. The non-essential drug class had a cost of Rp. 148,042,836, with the lowest EOQ value of 1 and the highest of 58. The results of the study suggest that the Dharma Pharmacy Clinic requires the VEN classification analysis methods, ABC classification analysis, and EOQ, ROP, and SS analysis methods to improve drug procurement efficiency. The use of quantitative methods and software analysis adds credibility to the study's findings, providing insights for pharmaceutical companies and hospitals to improve their drug inventory management system.


I. INTRODUCTION (HEADING 1)
Drug supply management is a crucial aspect that has a significant impact on every service activity.As the number of drug orders increases, there is a need for an efficient ordering system that can provide accurate and prompt information on drug supply (Anief, M. 2014).Procurement, which is an essential activity in pharmacy services, involves planning for drug needs.Effective procurement is vital to ensure availability, quantity, timeliness, affordability, and compliance with quality standards.It is an ongoing process that starts with selecting and determining the required amount, while considering the available resources (Anief, M. 2014).
At the Dharma Pharmacy Clinic, several challenges related to drug procurement management have been identified.The procurement planning for pharmaceutical preparations at the clinic lacks a structured analysis and relies solely on estimated consumption.Unplanned orders and unpredictable costs often p-ISSN : 2442-4099 IJBAM, Vol 5, No. 01, 2022: 15 -24 e-ISSN : 2549-8711 Sekolah Tinggi Ilmu Ekonomi Indonesia Jakarta https://ejournal.stei.ac.id/index.php/IJBAMoccur, leading to drug shortages, excess stock, or damaged drugs.Consequently, the need for a well-defined inventory control method that balances supply and demand has become imperative.Such an approach can overcome the identified problems and promote effective and efficient procurement of drug supplies at the Dharma Pharmacy Clinic.
The research aims to investigate and analyze the drug supply management system at the Dharma Pharmacy Clinic in Tangerang using quantitative descriptive methods.Specifically, the study aims to identify trends in the supply of vital, essential, and non-essential drugs through VEN analysis, and to determine the optimal frequency of drug procurement and the economic order quantity (EOQ) of drug supplies.Additionally, the study aims to evaluate the effectiveness of the ABC classification method in drug supply management at the Dharma Pharmacy Clinic.Ultimately, the research aims to propose an effective drug supply management system for the Dharma Pharmacy Clinic in Tangerang.

A. Operational Management
The input of operational management is fundamental to the decision-making process in operations management, as forecasting provides crucial information for future requests.Balancing supply and demand is a key objective of operations management, and accurate estimation of future demand is crucial in determining the required capacity or supply to achieve this balance (Stevenson, 2011: 72).

B. Inventory Management
The meaning of inventory varies among companies and is dependent on their business and activities.Inventory is often one of the most expensive assets for many companies and can represent up to 50% of the total invested capital.Effective inventory management is recognized by operations managers worldwide as an essential practice to reduce costs while ensuring customer satisfaction.The goal of inventory management is to achieve a balance between inventory investment and customer service, as good inventory management is key to achieving a low-cost strategy (Heizer and Render, 2016: 553).
To analyze the consumption pattern of pharmaceutical supplies, the commonly used methods are the ABC or Pareto Classification Analysis and the VEN (Vital, Essential, Non-Essential) Analysis.The VEN Analysis is a system used for selecting, procuring, and using pharmaceutical supplies, while the ABC Analysis categorizes drugs based on their priority to avoid stock out or vacancies and maximize fund utilization.By combining both methods, a procurement pattern evaluation can be carried out effectively (Bachrun, E.2017).
Another useful analysis method for efficient fund utilization is the ABC Critical Index Analysis, which assesses the use value, investment value, and critical value of drugs or pharmaceutical supplies based on their impact on health.This analysis method is effective in improving inventory management and should be considered by companies seeking to optimize their pharmaceutical supply management (Febriawati, H. 2013: 92).

III. METHODOLOGY
The present research is a quantitative descriptive study aimed at exploring the application of drug supply control at the Pharmacy Clinic Dharma Tangerang.The study is focused on determining the existence of independent variables related to drug supply control, without making any comparisons or examining the relationships between variables.The research employs the economic order quantity (EOQ) method, ABC classification analysis method, and vital, essential and nonessential (VEN) analysis for data analysis.
The unit of analysis in this study is drug supply data, cost data related to drug supplies, and decision-making data by pharmacists managing pharmacies and pharmacy facility owners.The data were collected from January 2019 to December 2019.
Quantitative data related to drug procurement were processed using Microsoft Excel software and QM For Windows.To simplify the data analysis process, an ABC-VEN Critical Index Analysis table was used..

A. Data Analysis Stages
The stages of data analysis used in this study are as follows: Fig. 1.
The stages of data analysis Figure 1 illustrates the data analysis stages employed in this study.The first stage involves the VEN classification method, which categorizes drugs according to their impact on health as vital, essential, or non-essential.The next stage is the ABC classification method, which analyzes the value of drug investment, the value of drug use, and the critical value of the drug.Finally, the Economic Order Quantity (EOQ) method is used, which involves determining the frequency and number of orders per year, the total cost, reorder point, and safety stock.The QM software for Windows V is utilized in this method to p-ISSN : 2442-4099 IJBAM, Vol 5, No. 01, 2022: 15 -24 e-ISSN : 2549-8711 Sekolah Tinggi Ilmu Ekonomi Indonesia Jakarta https://ejournal.stei.ac.id/index.php/IJBAMsimplify the calculation process.The combination of these three methods provides a comprehensive analysis of drug supply control and enables pharmacists to make informed decisions in managing pharmacies and pharmacy facilities.

B. Data
The data in this study was presented using QM software, as well as Excel tables to enhance clarity and comprehension.

C. Data Statistical Analysis Tool 1) VEN analysis
Data analysis using the Vital, Essential and Non-essential (VEN) method begins by gathering information and documentation from the Pharmacists managing the Pharmacy and Facility Owners authorized to issue documents at the Dharma Pharmacy Clinic.The aim is to identify which drugs fall under the vital, essential and non-essential categories, and to provide pattern data for diseases and standard treatment during 2019.The vital, essential and non-essential classifications are based on the Ministry of Health of the Republic of Indonesia (2019) guidelines, where Group V includes life-saving or very important drugs, Group E includes effective drugs with significant impact on diseases, and Group N includes drugs that treat a small number of diseases or diseases that can be overcome alone

2) ABC analysis a) Determine the investment value of drugs
The investment value of drugs was calculated by multiplying the drug price by the number of uses during the period of January to December 2019.The obtained results were then sorted from the highest to the lowest investment amount.The total drug investment was classified into the ABC group based on specific criteria, as follows:  Group A: Drugs with an investment value of 70% -80% of the total drug investment. Group B: Drugs with an investment value of 15% -20% of the total drug investment. Group C: Drugs with an investment value of 5% -10% of the total drug investment.

b) Determine the investment value in use
Based on the drug use data from January to December 2019, the total drug use was calculated and classified into the ABC group using the following criteria:  Group A: drugs with usage values of 70%-80% of the total drug use  Group B: drugs with usage values of 15%-20% of the total drug use  Group C: drugs with usage values of 5%-10% of the total drug use.
This classification enables the analysis of drug usage patterns and can aid in identifying opportunities for optimizing drug use and reducing unnecessary costs.
c) Determine the critical value of the drug A list of drugs was compiled to determine their critical value, with criteria established by an influential pharmacist responsible for drug provision.The total drug users were then classified into ABC groups based on their critical index value.
Classifying total drug users into ABC groups based on criteria:  Group A: drugs with a critical index value of 9-12  Group B: drugs with a critical index value of 6-8  Group C: drugs with a critical index value of 4-6 The application of critical value and ABC classification can assist pharmacists in prioritizing drugs and optimizing their inventory management.
3) Data Analysis with Economic Order Quantity (EOQ) Method a) Economic Order Quantity (EOQ) Optimizing inventory management is essential for businesses to minimize costs and improve efficiency.One popular model used for determining the optimal order quantity is the Economic Order Quantity (EOQ) model.The EOQ equation is represented as follows (Heizer & Render, 2016): Where: D = Request  * = Optimal quantity (optimal quantity) S = Cost of ordering H = Cost of holding D represents the demand, Q* represents the optimal quantity, S represents the cost of ordering, and H represents the cost of holding.
By using this equation, businesses can determine the ideal order quantity to minimize costs and improve their inventory management.
b) Frequency or number of orders per year (N) In order to obtain the value of frequency or number of orders per year, the following formula can be used (Heizer & Render, 2016: 564): Where Sekolah Tinggi Ilmu Ekonomi Indonesia Jakarta https://ejournal.stei.ac.id/index.php/IJBAMD = Demand Q = Order Quantity c) Total Cost (TC) In the realm of inventory management, Total Cost (TC) is the sum of all costs linked with maintaining inventory.However, with regards to Economic Order Quantity (EOQ), TC is the sum of the ordering cost and the carrying cost.The equation for computing the value of TC is as follows (Heizer & Render, 2016: 565).
Where To determine the reorder point (ROP) when a company implements a safety stock policy, the following formula can be used: e) Safety Stock (SS) Safety stock can be calculated by the formula Where: SS = safety stock d = Standard deviation L = The security factor is formed on the basis of the company's capabilities.

A. VEN analysis
A decision between the Pharmacists managing the Pharmacy and the owner of the Dharma Pharmacy Clinic Facility, who is also a doctor responsible for drug procurement, has resulted in the classification of approximately 160 drugs used in pharmaceutical services at the Dharma Pharmacy Clinic.Of these, 66 types of drugs have been classified into the vital (V) group, accounting for 41.25%.These drugs must be available within less than 48 hours, as they are critical for patient treatment.Additionally, 58 types of drugs have been classified as essential (E), accounting for 36.25%.These drugs work at the source of the disease, and a shortage of up to 48 hours can be tolerated.Finally, 36 types of drugs have been classified as Non-Essential (N), accounting for 22.5%.This group includes supporting drugs whose vacancies can be tolerated for more than 48 hours.The classification analysis results of vital (V), essential (E), and non-essential (N) drugs are presented here.

B. ABC analysis 1) ABC analysis based on investment value
As per the Ministry of Health of the Republic of Indonesia in 2014, the classification of supplies into group A, B, and C is based on their monetary value and volume.Group A consists of high-value items that account for a significant proportion of the total budget (60-90%) but are usually ordered in low volume.Group B includes supplies with a moderate value (20-30%), and Group C comprises items with low annual monetary value (10-20%) but often ordered in large quantities.
This study conducted an ABC analysis of 160 drug units available at the Dharma Pharmacy Clinic, whereby the units were classified into three categories: vital (V), essential (E), and non-essential (N).The aim of the analysis was to facilitate effective inventory management by stratifying drugs based on their criticality, usage frequency, and inventory holding costs.The categorization of drugs based on their criticality and usage frequency aids in identifying the drugs that require strict monitoring, recording, and supervision, ensuring that the pharmacy clinic maintains an adequate supply of essential medications while reducing the holding costs of nonessential drugs.
In the context of this ABC analysis research, a thorough examination was performed on 160 drug units available at the Dharma Pharmacy Clinic.The drug units were then classified according to their respective levels of importance, with vital (V), essential (E), and non-essential (N) categories being considered.
Of these categories, Group A, consisting of 57 units (36%), was identified as containing vital and essential drugs with high critical index values of 9-12.Given the important therapeutic impact of these drugs on patients, it is crucial that they are not understocked.Although orders can be made in smaller p-ISSN : 2442-4099 IJBAM, Vol 5, No. 01, 2022: 15 -24 e-ISSN : 2549-8711 Sekolah Tinggi Ilmu Ekonomi Indonesia Jakarta https://ejournal.stei.ac.id/index.php/IJBAMquantities, the frequency of restocking needs to be more frequent.Furthermore, as the investment value of these drugs is considerable, they have the potential to provide substantial profits for the Dharma Pharmacy Clinic.As a result, Group A requires stringent supervision and monitoring, accurate and comprehensive recording, and regular oversight by the pharmacists who manage the pharmacy and the facility owners directly.
In the present study, group B comprised 79 units (49%) of vital, essential, and non-essential drugs with moderate Critical Index Value, ranging from 6-8.The vacancies of group B drugs can be tolerated for no more than 24 hours with less frequent ordering, such as once every two weeks, but the number of orders may be relatively larger.The supervision and monitoring of this group are less stringent than group A, with monitoring occurring every three or six weeks.
In the ABC analysis conducted on 160 drug units at the Dharma Pharmacy Clinic, Group C consisted of 24 units (15%) of essential (E) and non-essential (N) drugs with a low Critical Index Value of 4-6.The duration of vacancies for Group C drugs may exceed 24 hours and the ordering frequency can be adjusted according to the clinic's budget and requirements, such as once a month.In contrast to Group A, Group C necessitates less stringent supervision and monitoring, which can be carried out once a month or less frequently.The table I displays the results of an ABC analysis of drugs at a pharmacy.The drugs are categorized based on their importance and critical index value into three groups: vital (V), essential (E), and non-essential (N).
For vital drugs, Group A contains the highest number of drug units with the highest critical index values (9-12), followed by Group B with moderate critical index values (6)(7)(8), and Group C with low critical index values (4)(5)(6).Group A has the highest investment value, which represents a potential for significant profit for the pharmacy.Therefore, Group A requires strict supervision and monitoring, accurate and complete recording, and regular monitoring by the pharmacy and facility owners.
For essential drugs, Group C has the highest number of drug units with low critical index values, followed by Group A and Group B. Group A has the highest investment value, which represents a potential for significant profit for the pharmacy.Therefore, Group A requires strict supervision and monitoring, accurate and complete recording, and regular monitoring by the pharmacy and facility owners.
For non-essential drugs, Group C has the highest number of drug units with the lowest investment value.The supervision and monitoring for this group can be more relaxed compared to the other groups.
Overall, the total number of drug units, their percentage, and the investment value for each group are also provided in the table I.

2) ABC analysis based on investment value
As per the Director General of Pharmaceuticals and Medical Devices (2010), the acquisition of medications in healthcare facilities such as hospitals, health centers, clinics, and pharmacies should be in line with the National List of Essential Medicines (DOEN), which is based on the needs of each health

Source: (The data was processed for this research (2021))
Table II shows the distribution of drugs based on their classification in three groups, namely VITAL, ESENSIAL, and NON ESENSIAL, each consisting of subgroups A, B, and C.
The table also provides information on the number of drugs in each subgroup, their percentage of the total number of drugs, total usage of drugs in each subgroup, and their percentage of value use.
In the VITAL group, subgroup C has the highest percentage of drugs (45.45%), while subgroup A has the highest total usage (5235) and the highest percentage of value use (69.79%).In the ESENSIAL group, subgroup C has the highest percentage of drugs (43.10%), while subgroup A has the highest total usage (1706) and the highest percentage of value use (69.12%).
In NON ESENSIAL group, subgroup C has the highest percentage of drugs (52.78%), while subgroup A has the highest total usage (936) and the highest percentage of value use (70.86%).The total number of drugs, percentage of drugs, total usage, and percentage of value use are also provided for each group and the overall total of all subgroups.

3) Critical Index ABC Analysis
The utilization of the ABC Critical Index analysis plays a significant role in optimizing the utilization of funds by categorizing drugs or pharmaceutical supplies based on their health impact (Febriawati, 2013).However, the Dharma Pharmacy Clinic has yet to adopt such an analysis, instead relying on experiential or physician requests in pharmaceutical procurement.As such, no calculations have been carried out based on actual drug data in determining fast, moderate, or slow-moving drugs, either in terms of usage value, investment value, or health impact.Therefore, this study aims to introduce a combination of these analyses in the procurement of pharmaceutical preparations at the Dharma Pharmacy Clinic.The results of this study are presented below.Source: (The data was processed for this research ( 2021)) The table III provides the classification analysis of vital, essential, and non-essential drugs based on the ABC critical index of the Dharma Pharmacy Clinic in 2019.The analysis is conducted to increase the efficiency of using funds by classifying drugs or pharmaceutical supplies based on their impact on health.The classification is based on the index value of each drug, which is calculated by dividing the investment value by the percentage of the number of drugs.The drugs are classified into four categories: V (very critical), E (essential), N (non-essential), and critical.The results show that group A has 42 drugs, with 36% falling under the critical category with an index value of 9-12.Group B has 24 drugs, with 49% falling under the critical category with an index value of 6-8.Group C has 24 drugs, with 15% falling under the critical category with an index value of 4-5.The total number of drugs is 66, with 58 falling under the E category and 36 falling under the N category.The total index value for all drugs is 160.

C. Economic Order Quantity (EOQ) Analysis 1) Economic Order Quantity
Schoreder (2010) suggests that utilizing the Economic Order Quantity (EOQ) method can enhance the production process of companies, enabling them to maintain their business continuity.The continuity of a company's business is vital to achieve production effectiveness.Therefore, maintaining sustainable business continuity is essential to achieve production objectives.Furthermore, companies must prioritize the selection of suppliers that provide high-quality raw Sekolah Tinggi Ilmu Ekonomi Indonesia Jakarta https://ejournal.stei.ac.id/index.php/IJBAMmaterials and can deliver these materials on time to ensure product quality.Delays in raw materials not only hinder the production process but also affect the quality of the final product.
According to the findings of the EOQ calculations, the Dharma Pharmacy Clinic experiences variations in Order Frequency and Total Cost for drug units.The highest EOQ value for vital drugs is 105, which requires 11 orders with a total cost of IDR 481,602,326, while the lowest EOQ value is 1, requiring only one order with a total cost of IDR 54,399,632.Similarly, the essential drug class has a highest EOQ value of 41, requiring 9 orders with a total cost of IDR 9291.76, and a lowest EOQ value of 1, requiring 4 orders with a total cost of IDR 175,571.For non-essential drugs, the highest EOQ value is 42, requiring 4 orders with a total cost of IDR 179,543.42, and the lowest EOQ value is 1, requiring 2 orders with a total cost of IDR 104,715.97.Therefore, Dharma Pharmacy Clinic should give more attention to the procurement of high EOQ valued drug units, particularly for the vital drug class, compared to drug units with low EOQ values.

2) Reorder Point and Safety Stock
In order to determine the appropriate timing for inventory replenishment, it is essential to calculate the Reorder Point (ROP).This is particularly crucial when there is a lead time, as it allows for the determination of the minimum inventory level required to prevent a stockout when orders have not yet arrived (Anif, 2014).By setting reorder times to coincide with the lead time, businesses can ensure that supplies will be available to meet inventory requirements during this period.In Indonesia, the Ministry of Health's Director General of Pharmaceutical and Medical Devices (2010) has highlighted the importance of considering waiting times between the ordering and receipt of drugs.The table IV presents the results of the Economic Order Quantity (EOQ) analysis conducted on a product with a demand rate (D) of 930 and a daily demand rate of 2.98.The optimal order quantity (Q*) is 24.51, with a setup/ordering cost (S) of 21000 and a holding/carrying cost (H) of 65000.The unit cost is 250000 and the annual orders per period are 37.94.The analysis assumed 312 days per year with a lead time of 1 day and a safety stock of 5 units.The maximum inventory level (Imax) is also 24.51, while the average inventory level is 12.26.The annual setup cost and annual holding cost are both 796696.3,with a total inventory cost of 325000.The unit costs (PD) are 232500000 and the total cost (including units) is 234418400.The reorder point is determined to be 7.98 units.This analysis provides valuable information for decisionmaking in inventory management, allowing for efficient and cost-effective ordering and stock management.Cost Curve that displays the total cost of inventory for various order quantities (Q), with the Y-axis representing the cost and the X-axis representing the order quantity.The curve is shaped by two costs: the holding cost and the setup cost.The holding cost is upward sloping while the setup cost is downward sloping.The equilibrium point of these costs is at an order quantity of 24.51 Q.The table indicates that at this equilibrium point, the total cost of inventory is $1,593,392.61.Companies can use this information to make informed decisions about inventory management and determine the optimal order quantity that will minimize inventory costs.Group C is an inventory with low investment value (10-20%) of the total investment value.From group V, 10.01% with a volume of 31 units (46.97%) are classified as group C, group E is 10.53% with a volume of 31 units (53.44%) and group N is 9.48% with a volume of 23 units (63.89%).These findings suggest that different inventory management strategies should be employed based on the classification of the inventory.For example, group A inventory items require close monitoring and frequent inventory checks to ensure their availability, while group C inventory items may require less frequent checks and a lower level of attention.. ABC classification analysis was conducted based on the annual total usage value of each drug class.Group A drugs, which are high usage and volume drugs, consisted of 17 units (25.76%) with a total usage of 5235 units (67.79%) for the vital (V) category, 15 units (25.86%) with a total usage of 1706 units (69.12%) for the essential (E) category, and 7 units (19.44%) with a total usage of 936 units (70.86%) for the non-essential (N) category.
Group B drugs, which have moderate volume and usage value, consisted of 19 units (28.79%) with a total usage of 1559 units (20.78%) for the vital (V) category, 18 units (31.03%) with a total usage of 529 units (21.43%) for the essential (E) category, and 10 units (27.78%) with a total usage of 259 units (19.53%) for the non-essential (N) category.
Lastly, group C drugs, which are slow-moving drugs with a large number but low level of usage, consisted of 30 units (45.45%) with a total usage of 707 units (9.43%) for the vital (V) category, 25 units (43.10%) with a total usage of 233 units (94.44%) for the essential (E) category, and 19 units (52.78%) with a total usage of 127 units (9.61%) for the non-essential (N) category.
Based on the Critical Index, the ABC classification analysis revealed that group A consisted of 57 units (36%) of vital (V) and essential (E) drugs with a high Critical Index Value of 9-12.These drugs should not experience shortages, as it could have an adverse effect on patient therapy.Group B consisted of 79 units (49%) of vital, essential, and non-essential drugs with a moderate Critical Index Value of 6-8.Vacancies of group B drugs can be tolerated for no more than 24 hours, and ordering should be less frequent.Lastly, group C consisted of 24 units (15%) of essential (E) and non-essential (N) drugs with a low Critical Index Value of 4-6.The vacancies for group C drugs can be longer than 24 hours, and ordering should be less frequent, adjusted to the needs and available funds.
3) According to the Economic Order Quantity (EOQ) method, the optimal order quantity for vital drugs (V) varied from 2 units (EOQ 1) to 105 units (EOQ 66), for essential drugs (E) it varied from 3 units (EOQ 1) to 41 units (EOQ 14), and for non-essential drugs (N) it varied from 3 units (EOQ 1) to 58 units (EOQ 26).Considering safety stock, the reorder point or time for ordering the 160 units of medicine varied: 0-10 units for vital drugs, 0-4 units for essential drugs, and 0-3 units for nonessential drugs.Procurement of drugs with high EOQ value, particularly for vital drugs, should be given priority attention.
4) Drug procurement at the Dharma Pharmacy Clinic is currently carried out through traditional methods, including stock-taking, stock cards, and defecta books.However, this approach lacks the use of specialized Sekolah Tinggi Ilmu Ekonomi Indonesia Jakarta https://ejournal.stei.ac.id/index.php/IJBAMmethods such as VEN classification analysis for grouping drugs based on their impact on health, ABC analysis for inventory priority, Economic Order Quantity (EOQ) to determine the optimum order quantity, Reorder Point (ROP), and Safety Stock (SS) to determine the ideal time for ordering.The adoption of these specialized methods could improve the efficiency and effectiveness of drug procurement at the clinic.

B. Suggestion 1)
The findings suggest several recommendations to improve the drug procurement system at Dharma Pharmacy Clinic.Firstly, an information system should be established to produce accurate data on the monthly, quarterly, and annual usage of each drug, which could facilitate the preparation of drug supply requirements.This system could be a Pharmacy Management Information System, which is integrated into each service to streamline the supervision, procurement, and control of medicines.
2) Secondly, the VEN analysis method should be implemented to provide precise information in controlling drugs based on their impact on health.Hence, a formulary or standard of therapy must be required, which should be evaluated annually to ensure that the procurement of medicines adheres to these standards.
3) Thirdly, the ABC analysis method should be applied based on the investment value of drugs.Drugs that require significant investment budgets must be given more attention to ensure that the procurement system is cost-effective.4) Fourthly, the ABC analysis method should be applied based on the value of use.High-use drugs should receive greater consideration during procurement to ensure that sufficient stocks are available.

5)
Fifthly, the ABC Critical Index Analysis method should be implemented, which is a combination of the ABC analysis method of investment value, ABC of use value, and vital (V), essential (E), and non-essential (N) analysis.This method would provide different priorities to each drug class because high-investment value, high-use value, and high-impact on health drugs require a strict control system.

6)
Sixthly, the EOQ method should be applied to avoid drug vacancies or excess (expired) drugs, which has been a recurring problem at the Dharma Pharmacy Clinic.

7)
Lastly, the Reorder Point (ROP) and Safety Stock (SS) method should be implemented to ensure the control of the drug unit's reorder point and safety stock.
: N = Frequency or number of orders per year p-ISSN : 2442-4099 IJBAM, Vol 5, No. 01, 2022: 15 -24 e-ISSN : 2549-8711 : TC = Total Cost D = Annual demand in units of supply Q = Order Quantity S = Order fee for each order H = Cost of storing or carrying inventory per unit per year P = Price of goods per unit d) Reorder Point (ROP) and Safety Stock (Safety Stock).The concepts of Reorder Point (ROP) and Safety Stock are fundamental in inventory management.The formula to calculate the ROP is given by Heizer & Render (2016: 567) as follows: requests per day L = Lead time or waiting time is the time between placing an order and its receipt.

Fig. 2 .
Fig. 2.Economic Order Quantity graph from Wiaflox 500 mg in 2019Fig II provides information on the inventory costs, excluding unit costs, of WIAFLOX 500Mg.It includes a Total Cost Curve that displays the total cost of inventory for various order quantities (Q), with the Y-axis representing the cost and the X-axis representing the order quantity.The curve is shaped by two costs: the holding cost and the setup cost.The holding cost is upward sloping while the setup cost is downward sloping.The equilibrium point of these costs is at an order quantity of 24.51 Q.The table indicates that at this equilibrium point, the total cost of inventory is $1,593,392.61.Companies can use this information to make informed decisions about inventory management and determine the optimal order quantity that will minimize inventory costs.

Table I .
RESULTS OF ABC CLASSIFICATION ANALYSIS BASED ON THE INVESTMENT VALUE OF THE DHARMA PHARMACY CLINIC IN 2019 a.Source: (The data was processed for this research (2021))b.

Table III .
CLASSIFICATION ANALYSIS OF VITAL, ESSENTIAL AND NON-ESSENTIAL DRUGS BASED ON THE ABC CRITICAL INDEX OF THE DHARMA PHARMACY CLINIC IN 2019 d.

Table IV .
EOQ, ROP AND SS CALCULATION RESULTS FOR WIAFLOX 500 MG WITH QM SOFTWARE FOR WINDOW V