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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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    2. 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).
    3. 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.
    4. Cem Deniz Caglar Bozkir & O. Erhun Kundakcioglu & Andrea C. Henry, 2022. "Hospital service levels during drug shortages: Stocking and transshipment policies for pharmaceutical inventory," Journal of Global Optimization, Springer, vol. 83(3), pages 565-584, July.
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