NAVAL POSTGRADUATE SCHOOL Monterey, California THESIS INVENTORY MANAGEMENT OF PHARMACEUTICALS IN AUTHORIZED MEDICAL/DENTAL ALLOWANCE LISTS by ElmerJohn A. Aguigam December, 1991 Thesis Co-Advisors: Keebom Kang William R.Gates Approved for public release; distribution is unlimited T256911 , UNCLASSIFIED SECURITY CLASSIFICATION OF THIS PAGE REPORT DOCUMENTATION PAGE FormApproved OMBNo 0704-0188 1a REPORT SECURITY CLASSIFICATION 1b RESTRICTIVE MARKINGS UNCLASSIFIED 2a SECURITY CLASSIFICATION AUTHORITY 3 DISTRIBUTION/AVAILABILITY OF REPORT Approved for public release; 2b DECLASSIFICATION/DOWNGRADING SCHEDULE distribution is unlimited 4 PERFORMING ORGANIZATION REPORT NUMBER(S) 5 MONITORING ORGANIZATION REPORT NUMBER(S) 6a NAME OF PERFORMING ORGANIZATION 6b OFFICE SYMBOL 7a NAME OF MONITORING ORGANIZATION (If applicable) Naval Postgraduate School Code 36 Naval Postgraduate School 6c. ADDRESS (City, State, and ZIPCode) 7b ADDRESS(City. State, and ZIPCode) Monterey, California 93943-5000 Monterey, California 93943-5000 8a NAME OF FUNDING/SPONSORING 8b OFFICE SYMBOL 9 PROCUREMENT INSTRUMENT IDENTIFICATION NUMBER ORGANIZATION (If applicable) 8c ADDRESS(City. State, and ZIPCode) 10 SOURCE OF FUNDING NUMBERS PROGRAM PROJECT TASK WORK UNIT ELEMENT NO NO NO ACCESSION NO 11 TITLE (Include Security Classification) INVENTORY MANAGEMENT OF PHARMACEUTICALS IN AUTHORIZED MEDICAL/DENTAL ALLOWANCE LISTS 12 PERSONAL AUTHOR(S) Aguigam, Elmer John A. 13a TYPE OF REPORT 13b TIME COVERED 14 DATE OF REPORT {Year,Month,Day) 15 PAGE COUNT Master" s Thesis FROM TO 1991, December 2LL_ 16 SUPPLEMENTARY NOTATION The views expressed in this thesis are those of the author and do not reflect the official policy or position of the Department of Defense or the U.S. Government. 17 COSATI CODES 18 SUBJECT TERMS (Continue on reverse if necessary and identify by block number) FIELD GROUP SUB-GROUP Pharmaceuticals, Shelf-life, Drug Stability, Authorized Medical Allowance List (AMAL) Bar Code 19 ABSTRACT (Continue on reverse if necessary and identify by block number) Pharmaceuticals stocked in Authorized Medical/Dental Allowance Lists (AMAL/ADAL) have an ongoing problem of expiration. Due to short shelf-life, Prepositioned War Reserve (PWR) pharmaceuticals inventory require constant monitoring to maintain medical support readiness. The problem associated with pharmaceuticals is the high cost of replacement and disposal. Numerous expired drugs were found in AMALs as a result of inaccurate inventory procedures. Current practices of the Medical Logistics Company were investigated and research was conducted for solutions on the pharmaceutical inventory problem. Cost-benefit studies for a stability program and a bar code system show potentially cost-effective measures to solve the shelf-life problem. The financial as well as the beneficial outcomes of increasing drug stability and implementing transactional 20 DISTRIBUTION/AVAILABILITY OF ABSTRACT 21 ABSTRACT SECURITY CLASSIFICATION E UNCLASSIFIED UNCLASSIFIED/UNLIMITED SAME AS RPT DTIC USERS 22a NAME OF RESPONSIBLE INDIVIDUAL 22b TELEPHONE (Include AreaCode) 22c OFFICE SYMBOL Prof. K. Kang and Prof. W. Gates XfVS) 646-3106/2754 AS/Kk & AS/Gt DDForm 1473, JUN 86 Previouseditionsareobsolete SECURITY CLASSIFICATION OF THIS PAGE S/N 0102-LF-014-6603 UNCLASSIFIED UNCLASSIFIED SECURITY CLASSIFICATION OF THIS PAGE #19 - ABSTRACT - (CONTINUED) inventory methods could help reduce the cost of shelf-life expiration. DD Form 1473, JUN 86 Reverse) SECURIT> CLASSIFICATION OF THIb PAGE UNCLASSIFIED ll