Assessing Inventory Management Indicators in Chain Pharmacy Stores: An Importance – Performance Analysis

Abstract

Effective inventory management is essential for the successful operation of chain pharmacy stores. As an integral component of chain management, its purpose is to oversee the movement of products from manufacturers to warehouses, and ultimately to patients. This study aims to investigate 13 key performance indicators sourced from a comprehensive literature review on inventory management. The primary objectives include analyzing the relationships among these indicators and evaluating their relative importance. The research adopts a qualitative approach, employing survey as the chosen method. The study participants are comprised of 18 managers or branch heads affiliated with chain drug stores in Thailand. The research employs the Importance Performance Analysis (IPA) tool to interpret the findings, with the objective of enhancing work quality. From the results obtained, the summary indicates a need to assess the indicators presently utilized in managing chain stores and to identify additional areas for performance enhancement. The results highlight specific areas requiring attention due to their high importance coupled with suboptimal performance. These areas include monthly stock adjustment and product shortages. Conversely, the study reveals aspects where managers excel and are considered significant, such as safety stock, inventory turnover, product availability, replenishment frequency, and Items on shelf. Additionally, our study involves acknowledging the significance of existing indicators in guiding store management practices while also recognizing the necessity of addressing logistics supplementary issues to develop overall performance.