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Mitigating the impact of drug shortages for a healthcare facility: An inventory management approach

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  • Saedi, Samira
  • Kundakcioglu, O. Erhun
  • Henry, Andrea C.

Abstract

Despite the importance and value of the pharmaceutical market, a significant portion of procurement spending including pharmaceuticals are lost. Coupling poor and reactive management practices with the inevitable national drug shortages, leads to lack of medicines causing patient suffering and direct life or death consequences. In this paper, we propose a stochastic model to find the optimal inventory policy for a healthcare facility to proactively minimize the effect of drug shortages in the presence of uncertain disruptions and demand.

Suggested Citation

  • Saedi, Samira & Kundakcioglu, O. Erhun & Henry, Andrea C., 2016. "Mitigating the impact of drug shortages for a healthcare facility: An inventory management approach," European Journal of Operational Research, Elsevier, vol. 251(1), pages 107-123.
    • Handle: RePEc:eee:ejores:v:251:y:2016:i:1:p:107-123
    DOI: 10.1016/j.ejor.2015.11.017
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    Cited by:

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    2. Shrutivandana Sharma & Hossein Abouee‐Mehrizi & Giorgio Sartor, 2020. "Inventory Management under Storage and Order Restrictions," Production and Operations Management, Production and Operations Management Society, vol. 29(1), pages 101-117, January.
    3. Imran Ali & Devika Kannan, 2022. "Mapping research on healthcare operations and supply chain management: a topic modelling-based literature review," Annals of Operations Research, Springer, vol. 315(1), pages 29-55, August.
    4. Kochakkashani, Farid & Kayvanfar, Vahid & Haji, Alireza, 2023. "Supply chain planning of vaccine and pharmaceutical clusters under uncertainty: The case of COVID-19," Socio-Economic Planning Sciences, Elsevier, vol. 87(PB).
    5. Ping Zhang & Hong Yan & King Wah Pang, 2019. "Inventory Sharing Strategy for Disposable Medical Items between Two Hospitals," Sustainability, MDPI, vol. 11(22), pages 1-21, November.
    6. Rana Azghandi & Jacqueline Griffin & Mohammad S. Jalali, 2018. "Minimization of Drug Shortages in Pharmaceutical Supply Chains: A Simulation-Based Analysis of Drug Recall Patterns and Inventory Policies," Complexity, Hindawi, vol. 2018, pages 1-14, December.
    7. Abadie, Amelie & Roux, Mélanie & Chowdhury, Soumyadeb & Dey, Prasanta, 2023. "Interlinking organisational resources, AI adoption and omnichannel integration quality in Ghana’s healthcare supply chain," Journal of Business Research, Elsevier, vol. 162(C).
    8. Ming-Lang Tseng & Phan Anh Tan & Kuo-Jui Wu & Remen Chun-Wei Lin & Nitcha Todumrongkul & Patrapapar Juladacha & Gabriella Christianti, 2020. "Sustainable Total Resource Management in Thailand Healthcare Industry under Uncertain Situations," Sustainability, MDPI, vol. 12(22), pages 1-23, November.
    9. Milad Mohammadi & Alibakhsh Nikzad, 2023. "Sustainable and reliable closed-loop supply chain network design during pandemic outbreaks and disruptions," Operations Management Research, Springer, vol. 16(2), pages 969-991, June.
    10. Zamiela, Christian & Hossain, Niamat Ullah Ibne & Jaradat, Raed, 2022. "Enablers of resilience in the healthcare supply chain: A case study of U.S healthcare industry during COVID-19 pandemic," Research in Transportation Economics, Elsevier, vol. 93(C).
    11. Jian Li & Lu Liu & Hao Hu & Qiuhong Zhao & Libin Guo, 2018. "An Inventory Model for Deteriorating Drugs with Stochastic Lead Time," IJERPH, MDPI, vol. 15(12), pages 1-20, December.
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    13. Gerald Oeser & Pietro Romano, 2021. "Exploring risk pooling in hospitals to reduce demand and lead time uncertainty," Operations Management Research, Springer, vol. 14(1), pages 78-94, June.

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