A MCDA approach to select a Kanban system for multi-echelon inventory management in a pharmaceutical supply chain

2016 ◽  
Author(s):  
Malak Mouaky ◽  
Abdelaziz Berrado ◽  
Loubna Benabbou
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Pharmaceutical Supply Chain ◽  
Kanban System

ABC/XYZ Analysis for Kanban System Implementation in Pharmaceutical Supply Chain

2021 ◽  
Vol 14 (3) ◽  
pp. 63-78
Author(s):  
Asrat Mekonnen Gobachew ◽  
Daniel Kitaw ◽  
Eshetie Berhan ◽  
Hans-Dietrich Haasis
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Direct Observation ◽  
Primary Data ◽  
Pharmaceutical Supply Chain ◽  
Monthly Data ◽  
Inventory Management System ◽  
Kanban System ◽  
One Year ◽  
Management Staff

The purpose of this study is to show how the implementation of the Kanban system based on ABC/XYZ analysis helps in improving the inventory management system in the supply chain where there is a lack of proper inventory management. Ethiopian pharmaceutical supply agency's distribution network is taken as a case to show the significance of the Kanban system. Monthly data for one year is collected and is accompanied by primary data obtained from direct observation and discussion with the company's management staff. ABC, XYZ, and ABC/XYZ matrix analyses were performed to determine items to be considered in Kanban implementation. By analysis, it is shown that the Kanban system can improve inventory-related costs by about 75%. While the Kanban system is rarely implemented in the pharmaceutical sector so far, it is understood in this study that it can bring improvements in the sector if properly implemented. Though it is shown by analyzing data on how the Kanban system can improve inventory-related costs, it is imperative to practically implement it for validation of its effectiveness.

scholarly journals A literature review on multi-echelon inventory management: the case of pharmaceutical supply chain

2018 ◽  
Vol 200 ◽  
pp. 00013 ◽  
Author(s):  
Nouçaiba Sbai ◽  
Abdelaziz Berrado
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Inventory Management ◽  
Raw Materials ◽  
Integrated Approach ◽  
Service Level ◽  
Pharmaceutical Products ◽  
Management Problem ◽  
Pharmaceutical Supply Chain ◽  
Customer Service Level

Inventory management remains a key challenge in supply chain management. Many companies recognize the benefits of a good inventory management system. An effective inventory management helps reaching a high customer service level while dealing with demand variability. In a complex supply chain network where inventories are found across the entire system as raw materials or finished products, the need for an integrated approach for managing inventory had become crucial. Modelling the system as a multi-echelon inventory system allows to consider all the factors related to inventory optimization. On the other hand, the high criticality of the pharmaceutical products makes the need for a sophisticated supply chain inventory management essential. The implementation of the multi-echelon inventory management in such supply chains helps keeping the stock of pharmaceutical products available at the different installations. This paper provides an insight into the multi-echelon inventory management problem, especially in the pharmaceutical supply chain. A classification of several multi-echelon inventory systems according to a set of criteria is provided. A synthesis of multiple multi-echelon pharmaceutical supply chain problems is elaborated.

Detecting counterfeit pharmaceutical drugs

2019 ◽  
Vol 26 (4) ◽  
pp. 1027-1047
Author(s):  
Dominic Peltier-Rivest ◽  
Carl Pacini
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Prevention Strategy ◽  
Pharmaceutical Drugs ◽  
Counterfeit Drugs ◽  
Pharmaceutical Supply Chain ◽  
Content Type ◽  
Forensic Accounting ◽  
Recent Estimate ◽  
Multi Stakeholder

Purpose This paper aims to analyze drug counterfeiting, explains its risk factors and operating and legal environments reviews recent legal cases and develops a multi-stakeholder prevention strategy that includes forensic accounting methods. Design/methodology/approach This is a theoretical study based on legal case studies and the best forensic accounting strategies. Findings Pharmaceutical drug counterfeiting is a fast-growing fraud that so far has attracted little attention from forensic accountants. A recent estimate projects that criminals collect around $75bn annually in illicit sales from counterfeit drugs (Bairu, 2015). Pharmaceutical counterfeiting also leads to the loss of lives when criminals use lethal chemicals in the manufacturing of fake medicines (Liang, 2006a; Brown, 2005). Because the detection of drug counterfeiting is extremely difficult after fake medicines have been ingested by patients, the strategy developed in this paper is based on early discovery by using reliable tracking technologies and inventory management controls in the supply chain, conducting effective regulatory and legitimate customs inspections, and increasing consumer awareness of basic forensic accounting tools. Research limitations/implications This paper extends previous research by integrating various factors into a single multi-stakeholder prevention framework. Practical implications The paper presents a synthesized, comprehensive view of the drug fraud epidemic and analyzes concrete steps that can be taken to protect the pharmaceutical supply chain to reduce the loss of lives and monetary injuries. Originality/value No previous research has analyzed this issue from a multi-stakeholder point of view and used forensic accounting tools to complement a prevention strategy. The drug counterfeiting prevention strategy developed in this paper addresses the supply side, the regulatory enforcement side and the demand side.

Inventory optimization considering the vehicle capacity and specifics of cash flows at rental storage sites

2020 ◽  
pp. 77-90
Author(s):  
V.D. Gerami ◽  
I.G. Shidlovskii
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Sufficient Conditions ◽  
Cash Flows ◽  
Management Systems ◽  
Cargo Capacity ◽  
Special Modification ◽  
The Cost ◽  
Necessary And Sufficient ◽  
Vehicle Capacity

The article presents a special modification of the EOQ formula and its application to the accounting of the cargo capacity factor for the relevant procedures for optimizing deliveries when renting storage facilities. The specified development will allow managers to take into account the following process specifics in the format of a simulated supply chain when managing inventory. First of all, it will allow considering the most important factor of cargo capacity when optimizing stocks. Moreover, this formula will make it possible to find the optimal strategy for the supply of goods if, also, it is necessary to take into account the combined effect of several factors necessary for practice, which will undoubtedly affect decision-making procedures. Here we are talking about the need for additional consideration of the following essential attributes of the simulated cash flow of the supply chain: 1) time value of money; 2) deferral of payment of the cost of the order; 3) pre-agreed allowable delays in the receipt of revenue from goods sold. Developed analysis and optimization procedures have been implemented to models of this type that are interesting and important for a business. This — inventory management systems, the format of which is related to the special concept of efficient supply. We are talking about models where the presence of the specified delays for the outgoing cash flows allows you to pay for the order and the corresponding costs of the supply chain from the corresponding revenue on the re-order interval. Accordingly, the necessary and sufficient conditions are established based on which managers will be able to identify models of the specified type. The purpose of the article is to draw the attention of managers to real opportunities to improve the efficiency of inventory management systems by taking into account these factors for a simulated supply chain.

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