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

3
3
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

2
3

Printing
Inventory

OT
1
.
Inventory

7
Medical
Inventory

Cath lab
Inventory
2

4
5

Engineering
Inventory

6 Lab
Inventory
House5 keeping
Inventory

F&B
Inventory
4

% 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

1
8

% of Items

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

ABC Classification of F&B

Inventory Store

Total 361 Items

Classification

53 items
Rs. 3.2 crores

91 items
Rs. 79.27 lakhs

217 items
Rs. 19.08 lakhs

ABC Classification
70

120
60

60

100

95.83
50

100

2
3

80

76.87

40
60
30

25

20

15

10

20

0
% of no. of items

% value in Rs.

40

Perishable
items 26
(P model)

Non perishable
Items- 27
(Q model)

Economic Order Quantity

Q model
Item

Intuitive
model

EOQ 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.17174.06

Class A- Non Perishable Goods-27

items
Total annual variable cost
Intuitive Model

47%
EOQ Model

Rs. 13952.38

Rs. 89804
Rs. 47843

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

3
4
5

Summary

Apollo Hospitals, Bhubaneswar wants to reduce unit cost and

improve its operating efficiency.

1
2

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.

4
5

EOQ will help reduce its overall cost and increase profitability