Abstract: Background and Objective: A good inventory control will support and accelerate the availability of drug services provided. The always, better and control (ABC) analysis, vital, essential and desirable (VED) analysis and the combination of ABC-VED analysis or ABC-VED matrix can be used for drug supply control. This study aimed to analyze the annual medical materials expenditure and consumption using inventory control techniques. Methodology: To prove that usefulness, a qualitative descriptive research was used in this study. The primary data were obtained through interviews and secondary data were obtained from pharmacy store and division of finance. The sample was a drug used by the pharmacy store of Veterinary Hospital Prof. Soeparwi, Faculty of Veterinary Medicine, Universitas Gadjah Mada, during January-December, 2016. Data were analyzed with Microsoft Excel and grouped by ABC-VED analysis category. Results: The total annual drug expenditure (ADE) incurred on 191 drug items issued in 2016 was Rp. 209,342,860.58. The ABC analysis showed that 14.14, 20.42 and 65.45% items drugs were found as always, better and control category items, respectively, amounting for 69.87, 20.42 and 9.71% of ADE of the pharmacy store. The VED analysis revealed that 14.14, 69.63 and 16.23% drug items were found to be Vital, Essential and Desirable category items, respectively, accounting for 26.10, 57.65 and 16.25% of ADE of the pharmacy store. On the ABC-VED matrix analysis, 25.13, 67.02 and 7.85% of drug items were found to be category I, II and III items, accounting for 74.17, 24.57 and 1.26% of ADE of the pharmacy store, respectively. Conclusion: The ABC-VED analysis can be adopted in drug inventory of hospital drug management so that it can plan the availability of drugs efficiently the quality of patient care.