An 80/20 report shows the 20% of the top drugs with the 80% of your money.
It is hard but wholesalers like Cardinal have the tool built in.
I run the report at 80% and use their MIN/MAX utility to establish an order frequency. Min/Max allows me to assign Min/Max settings to selected items.
I have been able to reduce the inventory by a considerable amount.
I kind of divide the list into 3 parts. The first one is "A" which is where most of my money is spent. The second one is "B" which consists of meds that one that I try to order on a weekly basis. And the last one is "C" which consists of meds that I look to order on a need-to-order basis or a monthly order.
This system was taught to me by a dear friend and allows me to optimize my inventory effectively.
We currently have a team of clinical pharmacists who round with our attending and resident physicians and influence them to use medication on the formulary.
