ABSTRACT With the high competition in the health industry, proper inventory strategy will ensure better performance and quality management. Preventing product shortages, or appropriate investing in the warehouse will enhance better functioning of the industry. It also poses a high quality management function with appropriate decision making skills. This brings the need of efficient techniques to forecast the needs of the customers. The aim of the present study was to identify the efficiency of the inventory matrix to the customitizsed need of the multispeciality hospital in Mangalore, and to understand the variables that influence the efficiency of the Inventory management.

Materials and Methods: The data is collected through the interview and discussion with the store manager, stock issue coordinator, and store incharge. Secondary source of data is collected through the stock transfer issue register. Hence all the consumable items are taken into consideration as the samples excluding those items like fixed assests, machinery spares, plumbing, medical gases, fuel, fire and safety

Result: Result showed that among the total 2148 items, 45.34% are patient consumables. And 54.65% items are self-consumables. The FSN analysis also showed that out of the total patient consumables (N=974) 44.45% are fast moving, 54.83% are slow moving and 0.72% are non moving items. Also among the self consumables (N=1174)54.09%are fast moving, 45.82% are slow moving and 0.09% are non moving respectively.

Conclusion: FSN analysis is a very useful technique to manage the Inventory management and to monitor the consumables. So when procuring the purchase order fast moving items could be prioritorised. Hence the this process ensure timely supply of materials and facilitate timely control.

KEY WORDS: Inventory management; FSN analysis; case analysis.