Journal
JOURNAL OF GLOBAL OPTIMIZATION
Volume 83, Issue 3, Pages 565-584Publisher
SPRINGER
DOI: 10.1007/s10898-021-01058-3
Keywords
Health services optimization; Inventory management; Drug shortages; Service level; Pooling
Funding
- Scientific and Technological Research Council of Turkey (TUBITAK) [115M564]
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This study examines how health networks deal with uncertain supply disruptions in the form of drug shortages by proposing a proactive inventory sharing approach for critical drugs to investigate the impact of inventory-related parameters on service levels.
In this study, we consider a health network that faces uncertain supply disruptions in the form of regional, nationwide, or worldwide drug shortages. Each hospital observes stochastic demand and if the drug is unavailable, patients leave and receive care in another network. As these instances of unavailability diminish the brand value, health networks look for inventory sharing mechanisms among hospitals to mitigate the effect of uncertain supply disruptions. In line with this expectation, we propose a proactive inventory sharing approach for critical drugs to investigate the effect of the inventory-related parameters on service levels.
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