IDEAS home Printed from https://ideas.repec.org/a/spr/gjofsm/v20y2019i1d10.1007_s40171-019-00223-8.html
   My bibliography  Save this article

Healthcare Supply Chain Simulation with Disruption Considerations: A Case Study from Northern Italy

Author

Listed:
  • Riccardo Aldrighetti

    (University of Padova)

  • Ilenia Zennaro

    (University of Padova)

  • Serena Finco

    (University of Padova)

  • Daria Battini

    (University of Padova)

Abstract

Healthcare supply chains (HSCs) have often been considered different from the usual supply chains (SCs) due to their high level of complexity, the presence of high-valuable medical materials and, finally, the fact that they deal with human lives. Furthermore, HSCs are not excluded from the increasing competitivity that is typical of the modern environment: International Healthcare systems are under increasing pressure to reduce waste and eliminate unnecessary costs while improving the quality and consistency of the care they provide to patient. The aim of this work is to analyse the impact of severe disruptions on SC performance in a Healthcare Supply Chain. More specifically, the objective of this study is to develop an approach to firstly analyse the effects of disruptions in terms of financial and operational performances, and successively to test different proactive and reactive mitigation strategies with the aim to maintain the highest service level, closed to 100%, in order to avoid shortages in hospitals’ wards. Disruptions can have a crucial impact on HSCs, because human lives can possibly be at the stake. Considering that the occurrence of disastrous events has been increasing in the last years, it is becoming inevitable to consider this risk in designing and planning HSCs that are more flexible and resilient. This work demonstrates that for long-lasting disruption, activating a backup supplier represents the most efficient mitigation strategy; on the other hand, for small-scale and short-duration disruptions, lateral transshipment represents a good way to mitigate the negative impacts of disruptions against a little increase in costs.

Suggested Citation

  • Riccardo Aldrighetti & Ilenia Zennaro & Serena Finco & Daria Battini, 2019. "Healthcare Supply Chain Simulation with Disruption Considerations: A Case Study from Northern Italy," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(1), pages 81-102, December.
    • Handle: RePEc:spr:gjofsm:v:20:y:2019:i:1:d:10.1007_s40171-019-00223-8
    DOI: 10.1007/s40171-019-00223-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40171-019-00223-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40171-019-00223-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tang, Christopher S. & Davarzani, Hoda & Sarkis, Joseph, 2015. "Quantitative models for managing supply chain risks: A reviewAuthor-Name: Fahimnia, Behnam," European Journal of Operational Research, Elsevier, vol. 247(1), pages 1-15.
    2. Battini, Daria & Persona, Alessandro & Sgarbossa, Fabio, 2014. "A sustainable EOQ model: Theoretical formulation and applications," International Journal of Production Economics, Elsevier, vol. 149(C), pages 145-153.
    3. Chun-Hung Chiu & Tsan-Ming Choi, 2016. "Supply chain risk analysis with mean-variance models: a technical review," Annals of Operations Research, Springer, vol. 240(2), pages 489-507, May.
    4. Seidscher, Arkadi & Minner, Stefan, 2013. "A Semi-Markov decision problem for proactive and reactive transshipments between multiple warehouses," European Journal of Operational Research, Elsevier, vol. 230(1), pages 42-52.
    5. Dmitry Ivanov, 2018. "Revealing interfaces of supply chain resilience and sustainability: a simulation study," International Journal of Production Research, Taylor & Francis Journals, vol. 56(10), pages 3507-3523, May.
    6. Yi-Kuei Lin & Cheng-Fu Huang & Yi-Chieh Liao & Chih-Ching Yeh, 2017. "System reliability for a multistate intermodal logistics network with time windows," International Journal of Production Research, Taylor & Francis Journals, vol. 55(7), pages 1957-1969, April.
    7. William Ho & Tian Zheng & Hakan Yildiz & Srinivas Talluri, 2015. "Supply chain risk management: a literature review," International Journal of Production Research, Taylor & Francis Journals, vol. 53(16), pages 5031-5069, August.
    8. Pradeep Kumar & Sasadhar Bera & Tanusree Dutta & Shibashish Chakraborty, 2018. "Auxiliary Flexibility in Healthcare Delivery System: An Integrative Framework and Implications," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 19(2), pages 173-186, June.
    9. Dawei Lu & Yi Ding & Sobhan Asian & Sanjoy Kumar Paul, 2018. "From Supply Chain Integration to Operational Performance: The Moderating Effect of Market Uncertainty," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 19(1), pages 3-20, March.
    10. Cappanera, Paola & Visintin, Filippo & Banditori, Carlo, 2014. "Comparing resource balancing criteria in master surgical scheduling: A combined optimisation-simulation approach," International Journal of Production Economics, Elsevier, vol. 158(C), pages 179-196.
    11. Tang, Ou & Nurmaya Musa, S., 2011. "Identifying risk issues and research advancements in supply chain risk management," International Journal of Production Economics, Elsevier, vol. 133(1), pages 25-34, September.
    12. Qi, Lian, 2013. "A continuous-review inventory model with random disruptions at the primary supplier," European Journal of Operational Research, Elsevier, vol. 225(1), pages 59-74.
    13. Hasani, Aliakbar & Khosrojerdi, Amirhossein, 2016. "Robust global supply chain network design under disruption and uncertainty considering resilience strategies: A parallel memetic algorithm for a real-life case study," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 87(C), pages 20-52.
    14. Dmitry Ivanov, 2017. "Simulation-based single vs. dual sourcing analysis in the supply chain with consideration of capacity disruptions, big data and demand patterns," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 11(1), pages 24-43.
    15. Kwon, Ik-Whan G. & Kim, Sung-Ho & Martin, David G., 2016. "Healthcare supply chain management; strategic areas for quality and financial improvement," Technological Forecasting and Social Change, Elsevier, vol. 113(PB), pages 422-428.
    16. Alexandre Dolgui & Dmitry Ivanov & Boris Sokolov, 2018. "Ripple effect in the supply chain: an analysis and recent literature," International Journal of Production Research, Taylor & Francis Journals, vol. 56(1-2), pages 414-430, January.
    17. Oded Berman & Dmitry Krass & Mozart B. C. Menezes, 2007. "Facility Reliability Issues in Network p -Median Problems: Strategic Centralization and Co-Location Effects," Operations Research, INFORMS, vol. 55(2), pages 332-350, April.
    18. Mario Situm & Rosendo Martin Martinez Mateos, 2017. "The strategic view of supply chain management and its association with risk," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 11(1), pages 87-134.
    19. Sushil, 2017. "Does Flexibility Mitigate or Enhance Risk?," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 18(3), pages 169-171, September.
    20. Shishebori, Davood & Yousefi Babadi, Abolghasem, 2015. "Robust and reliable medical services network design under uncertain environment and system disruptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 77(C), pages 268-288.
    21. Hou, Jing & Zeng, Amy Z. & Zhao, Lindu, 2010. "Coordination with a backup supplier through buy-back contract under supply disruption," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(6), pages 881-895, November.
    22. Lingxiu Dong & Nils Rudi, 2004. "Who Benefits from Transshipment? Exogenous vs. Endogenous Wholesale Prices," Management Science, INFORMS, vol. 50(5), pages 645-657, May.
    23. Amir Abbas Shojaie & Sepideh Babaie & Emel Sayah & Davood Mohammaditabar, 2018. "Analysis and Prioritization of Green Health Suppliers Using Fuzzy ELECTRE Method with a Case Study," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 19(1), pages 39-52, March.
    24. Mozart Menezes & O. Berman & D. Krass, 2007. "Facility Reliability Issues in Network p-Median Problems: Strategic Centralization and Co-location Effects," Post-Print halshs-00170396, HAL.
    25. Dmitry Ivanov, 2017. "Simulation-based ripple effect modelling in the supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 55(7), pages 2083-2101, April.
    26. Iwan Vanany & Suhaiza Zailani & Nyoman Pujawan, 2009. "Supply Chain Risk Management: Literature Review and Future Research," International Journal of Information Systems and Supply Chain Management (IJISSCM), IGI Global, vol. 2(1), pages 16-33, January.
    27. Dmitry Ivanov & Alexandre Dolgui & Boris Sokolov & Marina Ivanova, 2017. "Literature review on disruption recovery in the supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 55(20), pages 6158-6174, October.
    28. Tang, Christopher S., 2006. "Perspectives in supply chain risk management," International Journal of Production Economics, Elsevier, vol. 103(2), pages 451-488, October.
    29. Sushil, 2016. "Strategic Flexibility in Ecosystem," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 17(3), pages 247-248, September.
    30. Daria Battini & Maurizio Faccio & Alessandro Persona & Fabio Sgarbossa, 2013. "Modelling the Growing Process of Integrated Healthcare Supply Networks," International Journal of System Dynamics Applications (IJSDA), IGI Global, vol. 2(1), pages 1-13, January.
    31. Lawrence V. Snyder & Zümbül Atan & Peng Peng & Ying Rong & Amanda J. Schmitt & Burcu Sinsoysal, 2016. "OR/MS models for supply chain disruptions: a review," IISE Transactions, Taylor & Francis Journals, vol. 48(2), pages 89-109, February.
    32. Jabbarzadeh, Armin & Fahimnia, Behnam & Sheu, Jiuh-Biing & Moghadam, Hani Shahmoradi, 2016. "Designing a supply chain resilient to major disruptions and supply/demand interruptions," Transportation Research Part B: Methodological, Elsevier, vol. 94(C), pages 121-149.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aldrighetti, Riccardo & Battini, Daria & Ivanov, Dmitry & Zennaro, Ilenia, 2021. "Costs of resilience and disruptions in supply chain network design models: A review and future research directions," International Journal of Production Economics, Elsevier, vol. 235(C).
    2. Hosseini, Seyedmohsen & Ivanov, Dmitry & Dolgui, Alexandre, 2019. "Review of quantitative methods for supply chain resilience analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 285-307.
    3. Aarti Singh & Ratri Parida, 2022. "Decision-Making Models for Healthcare Supply Chain Disruptions: Review and Insights for Post-pandemic Era," International Journal of Global Business and Competitiveness, Springer, vol. 17(2), pages 130-141, December.
    4. K. Katsaliaki & P. Galetsi & S. Kumar, 2022. "Supply chain disruptions and resilience: a major review and future research agenda," Annals of Operations Research, Springer, vol. 319(1), pages 965-1002, December.
    5. Dmitry Ivanov, 2022. "Viable supply chain model: integrating agility, resilience and sustainability perspectives—lessons from and thinking beyond the COVID-19 pandemic," Annals of Operations Research, Springer, vol. 319(1), pages 1411-1431, December.
    6. Dmitry Ivanov & Alexandre Dolgui & Boris Sokolov & Marina Ivanova, 2017. "Literature review on disruption recovery in the supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 55(20), pages 6158-6174, October.
    7. Ivanov, Dmitry, 2020. "Predicting the impacts of epidemic outbreaks on global supply chains: A simulation-based analysis on the coronavirus outbreak (COVID-19/SARS-CoV-2) case," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    8. Chowdhury, Priyabrata & Paul, Sanjoy Kumar & Kaisar, Shahriar & Moktadir, Md. Abdul, 2021. "COVID-19 pandemic related supply chain studies: A systematic review," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 148(C).
    9. Chowdhury, Nighat Afroz & Ali, Syed Mithun & Mahtab, Zuhayer & Rahman, Towfique & Kabir, Golam & Paul, Sanjoy Kumar, 2019. "A structural model for investigating the driving and dependence power of supply chain risks in the readymade garment industry," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 102-113.
    10. Zhu, Xiaoyan & Cao, Yunzhi, 2021. "The optimal recovery-fund based strategy for uncertain supply chain disruptions: A risk-averse two-stage stochastic programming approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    11. Neungho Han & Juneho Um, 2024. "Risk management strategy for supply chain sustainability and resilience capability," Risk Management, Palgrave Macmillan, vol. 26(2), pages 1-26, May.
    12. Aghajani, Mojtaba & Ali Torabi, S. & Altay, Nezih, 2023. "Resilient relief supply planning using an integrated procurement-warehousing model under supply disruption," Omega, Elsevier, vol. 118(C).
    13. Can Ding & Li Liu & Yi Zheng & Jianxiu Liao & Wenxing Huang, 2022. "Role of Distribution Centers Disruptions in New Retail Supply Chain: An Analysis Experiment," Sustainability, MDPI, vol. 14(11), pages 1-17, May.
    14. Sanjoy Kumar Paul & Ruhul Sarker & Daryl Essam & Paul Tae-Woo Lee, 2019. "A mathematical modelling approach for managing sudden disturbances in a three-tier manufacturing supply chain," Annals of Operations Research, Springer, vol. 280(1), pages 299-335, September.
    15. Antonio Zavala-Alcívar & María-José Verdecho & Juan-José Alfaro-Saiz, 2020. "A Conceptual Framework to Manage Resilience and Increase Sustainability in the Supply Chain," Sustainability, MDPI, vol. 12(16), pages 1-38, August.
    16. Maureen S. Golan & Laura H. Jernegan & Igor Linkov, 2020. "Trends and applications of resilience analytics in supply chain modeling: systematic literature review in the context of the COVID-19 pandemic," Environment Systems and Decisions, Springer, vol. 40(2), pages 222-243, June.
    17. Yingjie Fan & Frank Schwartz & Stefan Voß & David L. Woodruff, 2017. "Stochastic programming for flexible global supply chain planning," Flexible Services and Manufacturing Journal, Springer, vol. 29(3), pages 601-633, December.
    18. Wei Xu & Dong-Ping Song, 2022. "Integrated optimisation for production capacity, raw material ordering and production planning under time and quantity uncertainties based on two case studies," Operational Research, Springer, vol. 22(3), pages 2343-2371, July.
    19. Svoboda, Josef & Minner, Stefan & Yao, Man, 2021. "Typology and literature review on multiple supplier inventory control models," European Journal of Operational Research, Elsevier, vol. 293(1), pages 1-23.
    20. Ali, Syed Mithun & Rahman, Md. Hafizur & Tumpa, Tasmia Jannat & Moghul Rifat, Abid Ali & Paul, Sanjoy Kumar, 2018. "Examining price and service competition among retailers in a supply chain under potential demand disruption," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 40-47.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:gjofsm:v:20:y:2019:i:1:d:10.1007_s40171-019-00223-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.