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Framework contracts for medicine inventory management in public healthcare

Muhammad Naiman Jalil (Suleman Dawood School of Business, Lahore University of Management Sciences, Lahore, Pakistan)
Wafa Malik (Organizational Research and Institutional Knowledge Management Center (ORIM), Primary and Secondary Health Department, Government of Punjab, Lahore, Pakistan)
Areeb Javaid (Organizational Research and Institutional Knowledge Management Center (ORIM), Primary and Secondary Health Department, Government of Punjab, Lahore, Pakistan)
Ali Jan Khan (Organizational Research and Institutional Knowledge Management Center (ORIM), Primary and Secondary Health Department, Government of Punjab, Lahore, Pakistan)

Emerald Emerging Markets Case Studies

ISSN: 2045-0621

Publication date: 9 July 2019

Abstract

Learning outcomes

This paper aims to highlight the implications of financial planning for public procurement process for medicine purchase. The purpose of this case is also to understand how the choice of contract type in public procurement impacts medicine inventory levels and availability. It finally highlights the appropriate configuration of framework procurement contract for procurement of discrete goods in the context of public sector procurement.

Case overview/synopsis

Primary and Secondary Healthcare Department (P&SHD), Government of the Punjab provides free public health-care services in the Punjab province. Public health-care services of P&SHD are organised in a tiered manner with almost 3,000 primary and secondary medical facilities dispersed throughout the Punjab province. P&SHD maintains inventories of approximately 300 medicines to support medical service provision.

Complexity academic level

This case can be taught in procurement and inventory management module of MBA level operations management course. It can also be used in executive course on public sector procurement management. The case aims to highlight the interrelation between inventory planning and procurement management process. Hence, it should be used after participants have understood inventory models, procurement process and procurement contract types. Standard readings or cases on inventory and procurement management that cover topics such economic order quantity, procurement process steps and procurement contracts can be used to develop this understanding.

Supplementary materials

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Subject code

CSS 9: Operations and logistics.

Keywords

Citation

Jalil, M.N., Malik, W., Javaid, A. and Khan, A.J. (2019), "Framework contracts for medicine inventory management in public healthcare", Emerald Emerging Markets Case Studies, Vol. 9 No. 1. https://doi.org/10.1108/EEMCS-06-2018-0118

Publisher

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Emerald Publishing Limited

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