The medicinal services in modern days have become more complex sophisticated and more expensive in terms of cost of drugs, surgical equipment and hospital stay. The study was undertaken with the main purpose of studying the drugs stored in community pharmacy according to their cost and criticality. The ABC analysis of the community pharmacy centre in Tirupati, India, was conducted to identify the categories of items needing stringent management control. The annual consumption and expenditure incurred on each item of community pharmacy for the year April 2013 - March 2014 was analyzed and inventory control technique (ABC analysis) was applied. The study revealed that 556 items in total were stored during the study period. The total annual drug expenditure (ADE) on items issued in 2013-2014 was Rs. 18728855.52. ABC analysis revealed 18.17%, 30.4% and 51.44% items as A, B and C category items, respectively, accounting for 69.97%, 20.02% and 10.01% of ADE of the community pharmacy. The ABC techniques need to be adopted as a routine practice for optimal utilization of resources and elimination of out-of-stock situations in the pharmacy.
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