An (R, Q) inventory policy for medicine under limited storage with a backlog

In hospitals have various sensitive and necessary items such as medicine, medical supplies and so on, the focus of this study is on multiple medicine items whose demand is determined from actual data in the central pharmacy room. There are issues on inventory stock management, which includes medicine supplies, due to the fact that each patient's medication is highly specific and needs special storage conditions. The quantities of medicine are depending on patient needs to ensure the orderly that have sufficient for the requirement, the stock management should be placed the order reach to the inventory level. This study focuses on comparing the effectiveness of sharing information and not sharing information in a central stock room to determine the optimal solution for minimizing total annual cost considers the (R, Q) inventory policy uncertain demand, a constant lead time, limited storage capacity with a backlog. The evaluation of performance is conducted using Microsoft Excel and Python through a spreadsheet simulation. To determine the best approach, the cyclic coordinate method with the golden section search is used to find the reorder point (R) and order quantity (Q) that result in the minimum total annual cost which are consist of the total annual cost include ordering cost, inventory holding cost, backlog, and over storage cost. The analysis is based on actual demand data collected from the pharmacy. This study's simulation optimization method can assist the central stockroom in managing the supply of medications while minimizing the total annual cost. The results are effective and realistic.