Development of Inventory Model for Health Care System in Multi-Speciality Hospitals Using Arena

In 21^st century healthcare organization is one of the significantly growing service organizations to the public in India but operational cost is increasing everyday which makes the people unaffordable. Hence, inventory management is essential to minimize the operational cost effectively in health care system. The aim of this study is to provide decision support for operation theatre in-charge in maintaining appropriate levels of drugs and consumables. The mathematical inventory model for accounting various elements of inventory cost is essential which enables the OT in-charge for making decisions to reduce inventory cost. The OT inventory system has been simulated to find average inventory and inventory turnover for critical products. The simulation results provides insight on average inventory to be maintained for the above three critical products as 14, 36 and 5 units respectively and also provides imminent on utilization of critical recourses in OT of the selected multi-specialty hospital.