Abstract: Objective: To compare the differences and advantages in the application of sort-based analysis and ABC inventory theo-ry in hospital pharmacy. Methods: Drug inventory data were collected from a teaching hoapital with 1000 beds.The data were calculat-ed through the application of ABC inventory theory and sort-based analysis. Results: A items were classified by ABC inventory theory, which had 215 items(17 percent of total items), 71.67 million units(46.41 percent of total inventory units) with 275.98 million yuan in whole cost (80.06 percent of total inventory costs);and the important items were classified by sort-based analysis which had 512 i-tems (40 percent of total items), 139 million units (90.01 percent of total inventory units) with 314.17 million yuan in whole cost (91.15 percent of total inventory costs). Conclusion: sort-based analysis can fetch up some shortages of ABC inventory theory in op-eration process, which should be used to improve the efficiency of inventory management in hospital pharmacy.