The Approach of Risk Management that Affecting the Inventory Management Cost of CDE Drugstore in Khonkaen Province

Abstract

The current Pharmacy business value in Thailand was 35 billion Baht, while the number of drugstores has increased 27 percent, which represented the intense competitive environment. This effect to drugstore business needed to consider cost reduction for surviving in this situation. Business risk management is the way to cut costs as in this study. The data rely on CDE pharmacies business which increases competing condition. Then analyzed risk management that on cost by using brainstorming method from five samples who involved in the management of CDE drugstores. The result found the integration of the inventory Management Software and bought, according to quantity demanded by time series can impact the change in cost as a value of risk. The cost has decreased from 0.94 million Baht to 0.81 million Baht or 13.14 percent reduction. Such changes relate to inventory management costs. In summary, the risk management approach in this study could decrease inventory management costs of the drugstore business by 13.14 percent.