Objective: This study was aimed to analyze Arbaminch Secondary level Hospital inventories by using ABC-VED matrix analysis and to identify the medicines requiring strict management control. Method: The ABC, VEN and ABC-VEN matrix analysis of the medicines used by Arbaminch Hospital, Arbaminch, Ethiopia for the year 2015-2017. Results: The medicine store inventory of Arbaminch Secondary Level Hospital consisted of a total of 218 products. The total annual drug expenditure of the store on products issued in 2013-2015 was found to be 259049.4 USD. In the year 2015-2017, 15.14%, 22.47% and 62.39% items were placed into A, B and C category medicines respectively, costing to 70.08 %, 19.87% and 10.05 % of drug expenditure. On VED analysis, 31.19%, 67.43% and 1.38% products were placed into the vital, essential and non-essential categories and the hospital had spent 45.05%, 52.62% and 2.33% of drug expenditure respectively. On ABC-VEN reconciliation analysis, 39.91%, 59.17% and 0.92% medicines were in group I, II and III respectively and amounting for 80.86%, 18.79% and 0.35% of drug expenditure respectively. Conclusion: The study showed that medicines belonging to category I need strict inventory control, also medicines belonging to categories II and III which need control by middle and lower managerial level respectively. ABC-VEN techniques should be applied for efficient use of resources and taking away of wastage and out-of-stock in the secondary level health care facility.
Key words: ABC analysis, ABC-VEN analysis, Pharmacy store, Secondary Level, VED analysis.
