SORA

Advancing, promoting and sharing knowledge of health through excellence in teaching, clinical practice and research into the prevention and treatment of illness

Balancing public health needs and economic sustainability: A dual-matrix model for community pharmacy inventory management

Jelić, AG; Vučenović, VT; Vučenović, S; Marković-Peković, V; Kurdi, A; Godman, B; Meyer, JC; Škrbić, R (2026) Balancing public health needs and economic sustainability: A dual-matrix model for community pharmacy inventory management. Exploratory Research in Clinical and Social Pharmacy, 22. p. 100727. ISSN 2667-2766 https://doi.org/10.1016/j.rcsop.2026.100727
SGUL Authors: Godman, Brian Barr

[img] PDF Published Version
Available under License Creative Commons Attribution.

Download (740kB)
[img] Microsoft Word (.docx) Accepted Version
Available under License Creative Commons Attribution.

Download (3MB)

Abstract

Background Community pharmacies must balance public health obligations with economic sustainability. However, integrated methods that jointly manage medical and non-medical inventory in community pharmacies in LMICs are limited. Objective To develop and apply a dual-matrix model separating medical from non-medical products into operational control categories and introducing a High–Medium–Low profitability (HML-P) classification. Methods We conducted a retrospective, descriptive analysis of all items handled in six community pharmacies in the Republic of Srpska, Bosnia and Herzegovina, during the analyzed 2022 year (12-month period) (n = 10,541). Medical products were classified by Always Better Control (ABC) by purchase value and Fast-/Slow-/Non-moving (FSN) by dispensing frequency (predefined thresholds: >4/day = F, 1–4 = S, <1 = N) to form an ABC–FSN matrix. Non-medical products were classified by ABC and a new HML-P scheme (expert-defined Pareto cut-offs: 70%/20%/10% of cumulative gross profit) to form an ABC–HML-P matrix. Each matrix was consolidated into three control categories: I (strict), II (moderate) and III (minimal). Results Non-medical products constituted 76.4% of all items. The ABC–FSN matrix identified Im = 149 medical products for strict control, while the non-medical ABC–HML-P matrix identified Inm = 580 items for strict control and a large segment for minimal oversight (IIInm = 6218). A pronounced Pareto pattern was observed (≈10% of items accounted for 70% of spend and 70% of gross profit), alongside low daily movement (only 3.2% dispensed ≥1/day). Conclusions The proposed dual-matrix model provides a practical decision-support tool for community pharmacies. It helps prioritize availability of patient-critical medical products while supporting economic sustainability.

Item Type: Article
Additional Information: © 2026 The Author(s). Published by Elsevier Inc. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
SGUL Research Institute / Research Centre: Academic Structure > Infection and Immunity Research Institute (INII)
Journal or Publication Title: Exploratory Research in Clinical and Social Pharmacy
ISSN: 2667-2766
Publisher License: Creative Commons: Attribution 4.0
Dates:
Date Event
2026-03-09 Published
2026-03-03 Published Online
2026-02-28 Accepted
URI: https://openaccess.sgul.ac.uk/id/eprint/118438
Publisher's version: https://doi.org/10.1016/j.rcsop.2026.100727

Actions (login required)

Edit Item Edit Item