Critical-to-life classification for managing inventory in a healthcare supply chain. (2015)

• Record Type: Journal Article
• Authors: Al-Qatawneh, Lina; Hafeez, Khalid
• Is Part Of: International journal of intelligent enterprise. Volume 3:Number 1(2015)
• Page Start: 54
• Page End: 78
• Publication Date: 2015
• Subjects: healthcare logistics -- system dynamics -- hospital inventory management -- ABC classification -- critical-to-life medical items -- (R, s, S) inventory control -- optimisation -- simulation -- healthcare supply chains -- supply chain management -- SCM -- USA -- United States -- item usage -- inventory levels -- supply lead times -- inventory classification -- service levels; Organizational learning -- Periodicals; Knowledge management -- Periodicals; Business intelligence -- Periodicals; Business enterprises -- Design -- Periodicals; Organizational effectiveness -- Periodicals; 658.005
• Languages: English
• ISSNs: 1745-3232

Abstract

This paper presents a multi-criterion critical-to-life classification technique to supplement the cost and usage measures that are normally employed in hospital inventory management. A system dynamics model was developed employing (R, s, S) inventory control approach for a US private sector healthcare supply chain. Extensive simulation analyses were conducted to study the stock behaviour for low, medium and high usage critical-to-life items to maintain a range of service levels. The (R, s, S) design parameters were optimised according to the variability of item usage, the associated inventory level and supply lead-time. Our findings suggest that the proposed inventory classification technique allows for assigning a particular service level to each critical-to-life item to ensure its availability while minimising the cost and stock-out situations. The proposed simulation tool incorporating critical-to-life inventory classification facilitates hospital logistics managers to devise efficient inventory control strategies based on critical-to-life service level index.