MEDICAL INVENTORY OPTIMIZATION

Submitted by
P.TANUJA
Contents

● Business Objective
● Business Constraints
● Project Architecture - Data Flow Diagram
● Data Collection
● Exploratory Data Analysis
● Data Visualization

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Business Problem

 Our healthcare organization faces challenges in efficiently managing and optimizing our medical
inventory. With a wide range of medical supplies and fluctuating demand patterns, we often
encounter issues such as overstocking, stockouts, expired products, and inefficient resource
allocation. These challenges not only impact patient care but also result in increased costs and
operational inefficiencies.
 To address these issues and enhance our inventory management processes, we aim to develop a
data-driven approach for medical inventory optimization. The goal is to optimize inventory levels,
minimize stockouts and wastage, improve resource utilization, and ultimately enhance patient care
outcomes while reducing costs.
Project Overview and Scope

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Data Dictionary

Inventory Data
1.Item_ID: Unique identifier for each medical item.
2.Item_Name: Name or description of the medical item.
3.Category: Category or classification of the item (e.g., medication, surgical supplies, equipment).
4.Quantity: Current quantity of the item in stock.
5.Unit_Price: Price of a single unit of the item.
6.Supplier_ID: Unique identifier for the supplier of the item.
7.Lead_Time: Lead time for replenishing the item (in days).
8.Expiration_Date: Date of expiration for perishable items.
9.Usage_Rate: Average usage rate of the item (units/day).
10.Inventory_Status: Status of the inventory item (e.g., in stock, out of stock, critical).
Exploratory Data Analysis [EDA]
Statistical Insights
• Compute central tendency measures like mean,
median, and mode to understand inventory
distribution.
• Assess dispersion measures such as variance,
standard deviation, and range to gauge
inventory variability.
• Analyze skewness and kurtosis to understand
distribution symmetry and shape.
• Conduct correlation analysis to identify
relationships between variables.
• Use statistical metrics to quantify inventory
characteristics and trends.
Business Insights
• Identify optimization opportunities based on
inventory levels and usage patterns.
• Utilize demand forecasting to anticipate future
inventory needs and prevent stockouts.
• Evaluate supplier performance to ensure
reliability and minimize supply chain risks.
• Implement risk management strategies to
mitigate inventory-related disruptions.
• Develop cost optimization strategies to reduce
inventory expenses and enhance efficiency.
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Data Preprocessing

1.Loading the Dataset: Replace "medical_inventory.csv" with the filename of your dataset containing
medical inventory data.

2.Handling Missing Values: The code checks for missing values in the dataset and prints the count of missing
values for inspection. You may need to decide on an appropriate strategy to handle missing values based on the
nature of your data and the extent of missingness.

3.Scaling Numerical Features: Define the list of numerical features in your dataset that need to be scaled.
Here, ‘StandardScaler()’ from scikit-learn is used to scale the numerical features to ensure they are on a similar
scale.

4.Splitting the Data: The dataset is split into features (‘x’) and the target variable (‘y’). Adjust the target
variable name according to your dataset. Then, the data is split into training and testing sets using
‘train_test_split()’ from scikit-learn. Adjust the test size and random state as needed.
Data Visualization
1. Histogram of Inventory Quantities:
- Shows distribution of inventory levels.

2. Time Series Plot of Inventory Levels:

- Illustrates trends and patterns in inventory over time.

3. Box Plot of Inventory by Category:

- Compares inventory levels across categories.

4. Scatter Plot of Inventory vs. Lead Time:

- Examines relationship between inventory and supplier lead times.

5. Bar Chart of Inventory Status:

- Visualizes distribution of inventory status categories.

6. Heatmap of Correlation Matrix:

- Displays correlations between inventory variables.