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Decision Support for Allocating Scarce Drugs

Author

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  • Jayashankar M. Swaminathan

    (The Kenan-Flagler Business School, University of North Carolina, Chapel Hill, North Carolina 27599-3490)

Abstract

The 1998 settlement of a lawsuit by the state of California required 19 pharmaceutical firms to provide $150 million worth of drugs free of charge to more than 150 California clinics and hospitals over a three-year period. We developed a decision-support system that utilizes a multiobjective optimization model and a heuristic solution taking into account the efficiency, effectiveness, and equity of the drug-allocation process. As of November 2002, 90 percent of the total budget has been distributed to the various clinics with the help of this decision-support system.

Suggested Citation

  • Jayashankar M. Swaminathan, 2003. "Decision Support for Allocating Scarce Drugs," Interfaces, INFORMS, vol. 33(2), pages 1-11, April.
    • Handle: RePEc:inm:orinte:v:33:y:2003:i:2:p:1-11
    DOI: 10.1287/inte.33.2.1.14472
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    References listed on IDEAS

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    Cited by:

    1. Chih-Ching Yang, 2017. "Measuring health indicators and allocating health resources: a DEA-based approach," Health Care Management Science, Springer, vol. 20(3), pages 365-378, September.
    2. Karsu, Özlem & Morton, Alec, 2015. "Inequity averse optimization in operational research," European Journal of Operational Research, Elsevier, vol. 245(2), pages 343-359.
    3. Gemma Berenguer & Zuo-Jun (Max) Shen, 2020. "OM Forum—Challenges and Strategies in Managing Nonprofit Operations: An Operations Management Perspective," Manufacturing & Service Operations Management, INFORMS, vol. 22(5), pages 888-905, September.
    4. Volland, Jonas & Fügener, Andreas & Schoenfelder, Jan & Brunner, Jens O., 2017. "Material logistics in hospitals: A literature review," Omega, Elsevier, vol. 69(C), pages 82-101.
    5. Karsu, Özlem & Morton, Alec, 2014. "Incorporating balance concerns in resource allocation decisions: A bi-criteria modelling approach," Omega, Elsevier, vol. 44(C), pages 70-82.
    6. Nur Sunar & Jayashankar M. Swaminathan, 2022. "Socially relevant and inclusive operations management," Production and Operations Management, Production and Operations Management Society, vol. 31(12), pages 4379-4392, December.
    7. Robert W. Lien & Seyed M. R. Iravani & Karen R. Smilowitz, 2014. "Sequential Resource Allocation for Nonprofit Operations," Operations Research, INFORMS, vol. 62(2), pages 301-317, April.

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