Optimizing drug availability and reducing wastage through ABC-XYZ inventory management: Insights from a public tertiary cancer hospital in Northern India.

Authors

Sheetal Singh, Himanshu Sharma, Vijay Aggarwal

Published in

Indian journal of pharmacology. Volume 58. Issue 4. Pages 387-390. Jul 01, 2026. Epub Jul 01, 2026.

Abstract

This study assesses the ABC-XYZ analysis technique in reducing stockouts and maximizing the management of high-cost medications to improve accessibility and minimize expiry.
It is a retrospective analysis of records from a tertiary cancer hospital in northern India. The ABC-XYZ analysis technique was applied to 286 medications, which is approximately 90% of the yearly drug expenditure. A 6-month pilot intervention from March to August 2024 was carried out. Procurement strategies such as scheduled orders for stable, high-cost medications, and consumption-based forecasting for volatile medications were implemented based on the ABC-XYZ classification. Outcomes, including stock-out frequency and wastage costs, were compared before the intervention (September 2023 to February 2024) and after the intervention (September 2024 to February 2025).
An ABC analysis of 286 medications showed that 10.1% (29) were in Category A, consuming 70% of the total annual cost, thus emphasizing the need for strict and controlled monitoring of these. XYZ analysis categorized 286 medications grouping 22.7% (65) as X (stable), 39.2% (112) as Y (moderately stable), and 37.8% (108) as Z (unpredictable). A 6-month pilot intervention from March to August 2024 was conducted. As a result, the average monthly stock-out frequency decreased by 88.5%, which was statistically significant (P < 0.001). In addition, monthly wastage costs reduced by 76.5%, showing a strong clinical trend though not statistically significant.
The ABC-XYZ integration is an effective, evidence-based tool for optimizing drug inventory in a resource-constrained cancer hospital, drastically improving availability and reducing wastage.

PMID:
42583974
Bibliographic data and abstract were imported from PubMed on 12 Aug 2026.

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