Qualitative exploration of issues of Indian generic medicine supply chain using ISM-MICMAC

Purpose The purpose of this paper is to eliminate the medicine stock-out problem by building an optimum medicine stock in rural healthcare centers in India. Design/methodology/approach Data associated with inflow and outflow of a specific medicine (folic acid tablets) arer collected from all consecutive supply chain stages during the survey. While conducting the survey, it is found that several medicines are out of stock owing to uncertain lead time and demand. Integrating with quantity discount and min–max (s, S) inventory policy, two models are developed using system dynamics: one is Model 1 with constant lead time and uncertain demand, and the other is Model 2 with both uncertain lead time and demand. Findings Both models are simulated for a period of one year on Stella 9.1 platform. The results are compared with actual data, and the comparison shows significant improvement of the medicine stock at all downstream stages, while maintaining a certain safety stock. Further, Model 2 suggests a larger stock than Model 1 at each point of time. Practical implications Despite numerous issues, the stocks of medicine in rural healthcare systems can be improved as suggested by the models. The models depict the behavior of inventory stock at each stage of the supply chain and act as a function of time that could be used in the form of a prediction tool for the policymakers. Originality/value This paper is one of the first papers that had developed the model of the medicine supply chain in rural parts of a developing country. It provides a generic framework for the stock assessment and improvement throughout the supply chain.

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Interventions for an Artemisinin-Based Malaria Medicine Supply Chain

SSRN Electronic Journal ◽

10.2139/ssrn.2528785 ◽

2014 ◽

Author(s):

Burak Kazaz ◽

Scott T. Webster ◽

Prashant Yadav

Keyword(s):

Supply Chain ◽

Medicine Supply

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Design of a CPFR, Location, Inventory and Routing Approach to Diabetes and High Blood Pressure Medicine Supply Network Planning

Ingenieria y Universidad ◽

10.11144/javeriana.iued25.dcli ◽

2021 ◽

Vol 25 ◽

Author(s):

Francisco Andrés Chuchoque-Urbina ◽

Martha Patricia Caro-Gutiérrez ◽

Carlos Eduardor Montoya-Casas

Keyword(s):

Supply Chain ◽

Health Insurance ◽

Healthcare Provider ◽

Health Insurance Company ◽

Insurance Company ◽

Distribution Centers ◽

Supply Chain Costs ◽

Proposed Model ◽

Current Operation ◽

Medicine Supply

Objective: Designing a CPFR (collaborative planning forecasting and replenishment) model for the delivery of diabetes and arterial hypertension medicines from a health insurance company (EPS) to a healthcare provider (IPS) and comparing the performance of this collaborative chain to that of the traditional one through their corresponding supply chain costs. Methodology: A series of collaboration agreements involved in joint planning were established according to the designed CPFR model. This allowed (i) raising the levels of interaction between the health insurance company, the healthcare provider, the supplying pharmaceutical laboratories, and the patients; (ii) determining demand forecasts; (iii) locating distribution centers; and (iv) defining medicine distribution strategies oriented to the minimization of costs along the chain. Subsequently, the main differences between the current operation and CPFR models at the level of structure and decisions were characterized and then evaluated in terms of supply chain costs. Results: The significant impact of the proposed model is demonstrated. The total monthly cost of operating the chain is reduced by 11.2 % on average. Within the proposed innovation, an outstanding place is held by the savings reached in the purchase and distribution of medicines from the laboratory to the distribution centers, and by the customer satisfaction differences, which increased 15.3 % on average during the studied six-month period.

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