scholarly journals A way for reducing drug supply chain cost for a hospital district: A case study

2016 ◽  
Vol 9 (1) ◽  
pp. 207
Author(s):  
Leonardo Postacchini ◽  
Filippo Emanuele Ciarapica ◽  
Maurizio Bevilacqua ◽  
Giovanni Mazzuto ◽  
Claudia Paciarotti
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Bullwhip Effect ◽  
Service Level ◽  
Economic Order ◽  
Drug Supply ◽  
Service Levels ◽  
Management Policies ◽  
Drug Supply Chain

Purpose: This work aims at providing insights to optimise healthcare logistic of the drug management, in order to deal with the healthcare expenditure cut. In this paper the effects of different drug supply chain configurations, on the resulting average stock, service level and Bullwhip effect, of the studied supply chain, is quantitatively assessed. Design/methodology/approach: A case study of an Italian district has been studied, taking into account three echelons: suppliers, central stock, and hospitals. A model of the various supply chain configurations has been created with the use of the simulation. Specifically, 24 supply chain configurations have been examined, stemming from the combination of several supply chain design parameters, namely: transshipment policies (Emergency Lateral Transshipment or Total Inventory Equalization); re-order and inventory management policies (Economic Order Quantity or Economic Order Interval); required service levels (90% or 95%); the number of available vans (one or two). For each configuration, hospital average stock, service level and a “Bullwhip effect” analysis are computed. To know which input variables are statistically significant, a DoE (Design of Experiments) analysis has been executed. Findings: The output of this paper provides useful insights and suggestions to optimize the healthcare logistic and drug supply chain. According to the developed DoE analysis, it can be stated that the introduction of transshipment policies provides important improvement in terms of service and stock levels. To reduce the Bullwhip effect, which results in a service level decreasing, and in a managing stock costs increasing, it is worth to adopt an EOQ re-order policy. Practical implications: This research gives practical recommendations to the studied system, in order to reduce costs and maintain a very satisfactory service level. Originality/value: This paper fulfils an identified need to study which combination of transshipment policies, re-order/inventory management policies and required service levels, can be the best one to reduce costs and maintain a very satisfactory service level, in the specific logistic system.

Minimizing the bullwhip effect in a supply chain: a simulation approach using the beer game

SIMULATION ◽  
2020 ◽  
Vol 96 (9) ◽  
pp. 737-752
Author(s):  
Abdullah A Alabdulkarim
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Simulation Modeling ◽  
Reference Model ◽  
Bullwhip Effect ◽  
Optimal Decision ◽  
Simulation Approach ◽  
Management Policies ◽  
The Cost ◽  
Beer Game

In this research, the aim is to find the most appropriate inventory management logic and set of rules along with the optimal decision values that will minimize the bullwhip effect in a supply chain, taking the beer game supply chain as a reference model. In order to achieve this, a simulation model of the beer game supply chain is developed along with an ordering strategy based on the Economic Order Quantity with additional rules, such as no backorder policy, vendor-managed inventory, and taking into consideration route deliveries, all of which are implemented in the ordering algorithm. In the literature, there is extensive research conducted on the causes of the bullwhip effect and in the presence of certain inventory management policies. However, these terms are rarely combined with simulation modeling to provide satisfactory proven results. In this article, our proposed ordering algorithm avoids the bullwhip effect to a very large extent. The results show that approximately half the cost is incurred compared to recent studies with the same settings.

A systematic literature review of healthcare supply chain and implications of future research

2019 ◽  
Vol 13 (4) ◽  
pp. 405-435 ◽  
Author(s):  
Anuj Dixit ◽  
Srikanta Routroy ◽  
Sunil Kumar Dubey
Keyword(s):  
Supply Chain ◽  
Literature Review ◽  
Inventory Management ◽  
Cold Chain ◽  
Future Research ◽  
Research Papers ◽  
Content Type ◽  
Drug Manufacturing ◽  
Customer Training

Purpose This paper aims to review the healthcare supply chain (HSC) literature along various areas and to find out the gap in it. Design/methodology/approach In total, 143 research papers were reviewed during 1996-2017. A critical review was carried out in various dimensions such as research methodologies/data collection method (empirical, case study and literature review) and inquiry mode of research methodology (qualitative, quantitative and mixed), country-specific, targeted area, research aim and year of publication. Findings Supply chain (SC) operations, performance measurement, inventory management, lean and agile operation, and use of information technology were well studied and analyzed, however, employee and customer training, tracking and visibility of medicines, cold chain management, human resource practices, risk management and waste management are felt to be important areas but not much attention were made in this direction. Research limitations/implications Mainly drug and vaccine SC were considered in current study of HSC while SC along healthcare equipment and machine, hospitality and drug manufacturing related papers were excluded in this study. Practical implications This literature review has recognized and analyzed various issues relevant to HSC and shows the direction for future research to develop an efficient and effective HSC. Originality/value The insight of various aspects of HSC was explored in general for better and deeper understanding of it for designing of an efficient and competent HSC. The outcomes of the study may form a basis to decide direction of future research.

US trade policy is putting at risk the sustainability of the generic/biosimilar industry and the drug supply chain

2021 ◽  
pp. 174113432199431
Author(s):  
María Fabiana Jorge
Keyword(s):  
Supply Chain ◽  
Trade Policy ◽  
Pharmaceutical Products ◽  
Drug Supply ◽  
Active Pharmaceutical Ingredients ◽  
Pharmaceutical Ingredients ◽  
Us Trade Policy ◽  
Drug Supply Chain ◽  
Security Concern ◽  
The U.S

With the outbreak of the Coronavirus there is a new realization of the vulnerabilities of the U.S. drug supply chain. However, while such concerns may have been amplified by the pandemic, they preceded Covid-19 and were well documented before 2020. Indeed, in past years the U.S. Congress held several hearings addressing potential vulnerabilities in the U.S. drug supply chain, in part due to the increasing dependency on China as a dominant supplier of active pharmaceutical ingredients (APIs) and some finished pharmaceutical products. These vulnerabilities go well beyond health policy and constitute a national security concern. The article addresses how U.S. trade policy plays a significant role in shaping the pharmaceutical industry at home and abroad and is in part responsible for some of the current vulnerabilities of the U.S. drug supply chain.

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.

scholarly journals Optimizing Drug Supply Chain in Hospital Pharmacy Department: An Empirical Evidence from a Developing Country

2015 ◽  
Vol 5 (2) ◽  
pp. 153 ◽  
Author(s):  
John Mensah ◽  
Jonathan Annan ◽  
David Asamoah
Keyword(s):  
Supply Chain ◽  
Best Practices ◽  
Hospital Pharmacy ◽  
Primary Data ◽  
Drug Supply ◽  
Queuing Model ◽  
Pharmacy Department ◽  
The World ◽  
Reduced Costs ◽  
Drug Supply Chain

<p class="ber"><span lang="EN-GB">Healthcare organisations all over the world are looking for ways to improve operational efficiencies at reduced costs without affecting their services. This study was undertaken to first and foremost examine the supply chain practices at KATH Pharmacy, and secondly to assess those practices in the light of industrially accepted best practices. Primary data was obtained from fifty-five (55) respondents and the data were analysed using SPSS, and queuing model. </span><span lang="EN-US">Interesting findings emerged from the study, including patients spending an average of 12 minutes within the system of drug dispensing unit. However, this time can be reduced if the numbers of servers within the facility is increased by way of opening more dispensing outlets.</span></p>

A Machine Learning-Based System for Predicting Service-Level Failures in Supply Chains

2021 ◽  
Author(s):  
Gabrielle Gauthier Melançon ◽  
Philippe Grangier ◽  
Eric Prescott-Gagnon ◽  
Emmanuel Sabourin ◽  
Louis-Martin Rousseau
Keyword(s):  
Machine Learning ◽  
Supply Chain ◽  
Service Level ◽  
Learning System ◽  
Safety Stock ◽  
Service Levels ◽  
Sources Of Uncertainty ◽  
Supply Chain Efficiency ◽  
Percentage Points ◽  
Different Sources

Despite advanced supply chain planning and execution systems, manufacturers and distributors tend to observe service levels below their targets, owing to different sources of uncertainty and risks. These risks, such as drastic changes in demand, machine failures, or systems not properly configured, can lead to planning or execution issues in the supply chain. It is too expensive to have planners continually track all situations at a granular level to ensure that no deviations or configuration problems occur. We present a machine learning system that predicts service-level failures a few weeks in advance and alerts the planners. The system includes a user interface that explains the alerts and helps to identify failure fixes. We conducted this research in cooperation with Michelin. Through experiments carried out over the course of four phases, we confirmed that machine learning can help predict service-level failures. In our last experiment, planners were able to use these predictions to make adjustments on tires for which failures were predicted, resulting in an improvement in the service level of 10 percentage points. Additionally, the system enabled planners to identify recurrent issues in their supply chain, such as safety-stock computation problems, impacting the overall supply chain efficiency. The proposed system showcases the importance of reducing the silos in supply chain management.

Decision Support Tools for Managing Unpredictability in the Supply Chain

2000 ◽  
Author(s):  
Carol Vesier
Keyword(s):  
Supply Chain ◽  
Decision Support ◽  
Inventory Management ◽  
Production Scheduling ◽  
Capital Investment ◽  
Investment Strategy ◽  
Decision Support Tools ◽  
Business Outcomes ◽  
Support Tools

Abstract Effectively managing unpredictability requires decision support tools that can predict the financial and business outcomes of various supply chain strategies. This paper will discuss the role of these decision support tools and their characteristics as well as review a case study. In the case study, decision support tools facilitated development of strategies that increased after tax profit by $140 Million. These strategies included: • Reliability improvement strategy: Identifying the reliability improvements that offered the biggest profitability impact. • Supply chain strategy: Defining inventory management and production scheduling rules that ensured order shipment within two days. • Capital investment strategy: Defining when new capacity should come on line as well as the minimum capital investment.

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