Inventory Management Evaluation in a Pharmaceutical Distribution Company in Abuja

This research evaluates inventory management practices at a pharmaceutical distribution company operating in Abuja, North Central Nigeria. Effective inventory management in pharmaceutical distribution is critical not only for commercial efficiency but also for ensuring that essential medicines remain available to healthcare facilities without interruption. This study employs an ABC analysis to classify stock keeping units by annual consumption value, identifies slow-moving and obsolete items through turnover ratio analysis, and assesses current reorder point and economic order quantity calculations against actual demand patterns. Primary data were obtained through structured interviews with warehouse and procurement staff, supplemented by a twelve-month inventory transaction dataset provided by the company. Findings indicate that Class A items, representing approximately twenty percent of stock keeping units, account for seventy-four percent of annual inventory expenditure, yet their reorder points are set without adequate consideration of lead time variability. The study also identifies a substantial obsolescence rate among Class C items, suggesting over-procurement relative to therapeutic demand. Recommendations focus on implementing dynamic reorder point calculations, adopting a vendor-managed inventory arrangement for selected Class A items, and conducting quarterly stock rationalisation reviews. This research provides actionable inventory management guidance relevant to pharmaceutical distributors across Nigeria's Federal Capital Territory and North Central zone. Keywords: inventory management, ABC analysis, economic order quantity, pharmaceutical distribution, Abuja