Abstract:
The purpose of this thesis was to study and apply the basic principle of EOQ (Economic Order Quantity) and Reorder Point to improve drug inventory management of Institute of Aviation Medicine, Directorate of Medical Services, Royal Thai Air Force, through the use of a model based on a computer program, Microsoft Excel. From the research findings, the application of such principle can lead to better control drug inventory and to determine more appropriate reorder points. It also reduces the operation costs. The current situation on drug inventory administration was analyzed and it was found that there was a large stock of medicine on hand, resulting in extremely high overhead and inventory costs. At the same time, certain types of medicine were absent and so the Institute could not meet the needs of the clients. This was due to the lack of efficiency in the existing approach and management of drug inventory. The findings showed that with the model developed to increase efficiency in drug inventory management of Institute of Aviation Medicine, Directorate of Medical Services, Royal Thai Air Force, it was possible to reduce overall expenses by 137,865 Baht, approximately 25.97% of the total. Furthermore, it was able to reduce the average inventory cost by 17,628,312 Baht, or 34.65%.