Inventory Management at Apollo

Hospitals, Bhubaneswar
Group-7
Himanshu Dhamija- UM15081
Rahul Kumar Jena- UM15101
Saif Hasan Rizvi UM15105
Sibashish Mohapatra- UM15111
Varanasi Arjun- UM15121
Yasasvi Santosh- UM15123

Agenda

Timeline of Apollo Hospitals

Inventory Flow

33
4

Categories of Inventory

Recommendations and Summary

ABC analysis, EOQ and savings

Timeline of Apollo Hospitals

First hospital in
Chennai
150 beds
capacity

1983

First international
patient (from
middle east)

Apollo clinic
launched in Delhi

49th hospital opened

in Bhubaneswar
350 bed capacity
64 ICU beds
Largest corporate
hospital in Odisha

2
3
4

1991

2002

2010

Flow of Inventory
R
E
C
E
I
V
I
N
G
S
T
O
R
I
N
G

Supplier
Receipt of Inbound material at central receiving store
Material Return

Inspection

Not Matching
Matching with specification
GRN Preparation
Receiving Acknowledgment to supplier
Break Bulking
Put Away
Update Inbound stock into system

1
2
3
4
5

Store

Categories of inventory

1
2
3
4
5

Printing
Inventory

Medical
Inventory
6Lab
Inventory

OT
1
.
Invent
ory
Cath lab
Inventory
2

% Value of
Consumption
in INR

15
15
15
15

75
73
72
70

15
15

71
74

15

77

Cath Lab
Engineering
Medical
House
Keeping
OT Store
Printing &
Stationary
F&B

Engineering
Inventory

House- F&B
5keeping Inventory
Inventory
4

% of Items

Perishable/
Non
Perishable
Fastest
moving
Items
Perfect
fit into
Pareto
Analysis

ABC Classification of
F&B Inventory Store

Total 361
Items
A

Classification

53 items
Rs. 3.2 crores

ABC Classification
70

120

60

95.83

60
100

100

50
40

20
10

217 items
Rs. 19.08 lakhs

25

60
40

15

20

0
% of no. of items

% value in Rs.

2
3
4

80

76.87

30

91 items
Rs. 79.27 lakhs

Perishable
items 26
(P model)

Non perishable
Items- 27
(Q model)

Economic Order
Quantity
Q model
Item

EOQ model

Intuitive
model

19kg LPG cylinder

Quantity

2581

Price

Rs.1373.17

Ordering cost

10% of price

Holding Cost

20% of price

Lot size

99

51

Time between
orders

14 days

7.18 days

Total annual
variable cost

Rs.17174.0
6

Class A- Non Perishable Goods-27

items
Total annual variable cost
Intuitive Model

Rs. 89804

EOQ Model

Rs. 47843

Rs. 13952.38
Master Sheet

47
%

Recommendations

Use EOQ model instead of intuition method

Avoid binning at central receiving store
Binning at respective inventory store will save throughput time
Use computer generated reports
ERP application from end user to supplier will improve inventory
accuracy
Implementing and monitoring the use of bar codes
Will help in getting real time data thereby facilitating better
inventory management
Contact other Apollo hospitals to find their method of operations
management

1
2
3
4
5

Summary

Apollo Hospitals, Bhubaneswar wants to reduce unit cost

and improve its operating efficiency.
Inventory management will help solve this problem. ABC
analysis helps to prioritize the items based on their total
cost.
The total annual variable cost for non perishable goods of
Class A items in F&B inventory store using EOQ was found
to be Rs. 47843 which is 47% lower than
intuitional/conventional method.
EOQ will help reduce its overall cost and increase
profitability

1
2
3
4
5