Inventory Control Analysis for Pharmaceutical Distribution in Kano State Using the Economic Order Quantity Model

Effective inventory management is critical in pharmaceutical supply chains, where stockouts can have life-threatening consequences. This study applies the Economic Order Quantity (EOQ) model to evaluate inventory control practices among selected pharmaceutical distributors in Kano State, North West Nigeria. The research surveyed ten registered wholesale distributors operating within the Kano metropolis, collecting data on ordering patterns, holding costs, demand variability, and supplier lead times over a 12-month period. Using the EOQ formula alongside reorder point calculations, the study identifies optimal order quantities and safety stock levels for 15 high-demand drug categories. Results reveal that the majority of distributors maintain inventory levels that are either excessively high, leading to avoidable holding costs, or dangerously low, causing frequent stockouts of essential medicines. The study estimates that adopting EOQ-based inventory policies could reduce total inventory costs by approximately 28 percent annually. Seasonal demand fluctuations, particularly during festive periods and disease outbreak seasons, are identified as critical variables that current manual systems fail to account for adequately. The research recommends the adoption of simple inventory management software integrated with EOQ parameters and the training of store personnel in basic quantitative inventory methods. This work provides a replicable model for pharmaceutical warehouses across Northern Nigeria, contributing to the broader goal of improving healthcare supply chain efficiency. Keywords: EOQ model, inventory control, pharmaceutical distribution, Kano State, supply chain