INVENTORY MANAGEMENT FOR PHARMACEUTICAL INDUSTRY Brazil\'s pharmaceutical market

Question

INVENTORY MANAGEMENT FOR PHARMACEUTICAL INDUSTRY Brazil's pharmaceutical market, the second largest in the emerging world, is growing at a 28 percent compounded annual rate. In 2010, the value of the prescription drugs sold to Brazil's middle class was $8 billion, mostly for unpatented medications. According to McKinsey report, the middle class prefers to rely on public health services, whose physicians prescribe only generic drugs. Moreover, it reported that cost-conscious middle-class patients ask pharmacists to switch their medications to less expensive generics even when physicians prescribe branded drugs. The Brazilian Pharmaceutical Market Overview combination of high growth rates and sound industry fundamentals Sales of the Brazilan Pharmaceutioal Industry 1996-2011 (RS billion) 41.8 360 30.0 12 e% CAGR (96-11) 7.0 83 4 103 112 118 13.1 144 1997 198 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Macro Drivers eoome Growth Aging Population Timing Generie Drugs As a result, global pharmaceutical companies have concluded that they must focus on low-cost strategy for generics and branded generics. Nine of the largest local pharmaceutical films in Brazil (Ache, Biolab, Cristalia, Libbs, EMS, BioNovis, Hebron, Eurofarma and Orygen) have invested BRL538 million (USD174.3 million) during the first five months of 2015, focusing mainly on the production of biosimilars and generics http://www.mckinsey.com/insights health systems and services capturing the brazilian pharma opportunity industry-forecasting.htm?D-1065999088

Explanation / Answer

Annual cost of items

1st item = 20362.5

2nd item = 20000.4

3rd item = 13125

4th item = 7925.5

5th item = 17762.5

6th item = 51350

7th item = 128250

8th item = 70200

9th item = 26880

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