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Demand-pull replenishment model for hospital inventory management: a dynamic buffer-adjustment approach

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  • Li-chih Wang
  • Chen-yang Cheng
  • Ya-tsai Tseng
  • Yi-fang Liu

Abstract

Hospital inventory management faces a continually increasing challenge to ensure the availability of medical and surgical supplies at the lowest inventory cost. For overcoming the drawbacks of existing re-order point approaches commonly applied in hospital materials replenishment management, this research presents an innovative demand-pull replenishment approach named the dynamic drum-buffer-rope (DDBR) replenishment model. The DDBR model is implemented using a system dynamics approach in which two essential mechanisms -- the demand-pull characteristics and dynamic buffer-adjustment activities -- are simulated and experimented on. To determine appropriate buffer sizes and replenishment quantities, this research adopted Powell search algorithm to achieve the objective of no stock-out occurrence and low inventory cost. The evaluation of the proposed DDBR model in a real hospital case through a series of comparisons shows that the DDBR model can determine optimal replenishment timing and quantity for total inventory cost with no stock-out occurrence.

Suggested Citation

  • Li-chih Wang & Chen-yang Cheng & Ya-tsai Tseng & Yi-fang Liu, 2015. "Demand-pull replenishment model for hospital inventory management: a dynamic buffer-adjustment approach," International Journal of Production Research, Taylor & Francis Journals, vol. 53(24), pages 7533-7546, December.
    • Handle: RePEc:taf:tprsxx:v:53:y:2015:i:24:p:7533-7546
    DOI: 10.1080/00207543.2015.1102353
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    Cited by:

    1. Esha Saha & Pradip Kumar Ray, 2019. "Modelling and analysis of healthcare inventory management systems," OPSEARCH, Springer;Operational Research Society of India, vol. 56(4), pages 1179-1198, December.
    2. Spiegler, Virginia L.M. & Naim, Mohamed M., 2017. "Investigating sustained oscillations in nonlinear production and inventory control models," European Journal of Operational Research, Elsevier, vol. 261(2), pages 572-583.
    3. 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.
    4. Edward G. Anderson & David R. Keith & Jose Lopez, 2023. "Opportunities for system dynamics research in operations management for public policy," Production and Operations Management, Production and Operations Management Society, vol. 32(6), pages 1895-1920, June.
    5. Carlos Franco & Edgar Alfonso-Lizarazo, 2017. "A Structured Review of Quantitative Models of the Pharmaceutical Supply Chain," Complexity, Hindawi, vol. 2017, pages 1-13, December.

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