Drug Inventory System Using Economic Order Quantity (EOQ) Model

The main objective of this project is to develop drug inventory system using Economic Order Quantity (EOQ) Model for PharmaCare Pharmacy to minimize their total inventory costs as the owner need to compare price between each supplier that offer same product. An interview was conducted with the owner to identify the problem that faced by the management of the pharmacy. By the interview done with the stakeholder, three problems was encountered which are to minimize order, comparing price and checking expiry date. Then, some of crucial data about the pharmacy's inventory was collected to analyze the problem and come out with best solution. All the activities and deliverables are discussed in this project. In order to carry out this activity, Economic Order Quantity (EOQ) Model is applied. EOQ is one of the inventory control model or technique to find the minimum order quantity. Besides, the system support ability to manage the suppliers details and keep all the data constantly. The method use in this project is Waterfall Model as it is suit well with this project. As a conclusion, the analysis has shown that by using EOQ model, problem faced by PharmaCare Pharmacy could be minimized. However, there is still a need to improve or future recommendation in term of make order of products from suppliers in order to have a good inventory management.