TY  - JOUR
AB  - Purpose This research proposes a decision framework for using non-financial measures to define a replenishment policy for perishable health products. These products are perishable and substitutable by nature and create complexities for managing inventory. Instead of a financial measure, numerous measures should be considered and balanced to meet business objectives and enhance inventory management.Design/methodology/approach This research applies a multi-methodological approach and develops a framework that integrates discrete event simulation (DES), analytic hierarchy process (AHP) and data envelopment analysis (DEA) techniques to define the most favourable replenishment policy using non-financial measures.Findings The integration framework performs well as illustrated in the numerical example; outcomes from the framework are comparable to those generated using a traditional, financial measures-based, approach. This research demonstrates that it is feasible to adopt non-financial performance measures to define a replenishment policy and evaluate performance.Originality/value The framework, thus, prioritises non-financial measures and addresses issues of lacking information sharing and employee involvement to enhance hospitals' performance while minimising costs. The non-financial measures improve cross-functional communication while supporting simpler transformations from high-level strategies to daily operational targets.
VL  - 120
IS  - 5
SN  - 0263-5577
DO  - 10.1108/IMDS-11-2019-0594
UR  - https://doi.org/10.1108/IMDS-11-2019-0594
AU  - Duong Linh Nguyen Khanh
AU  - Wood Lincoln C.
AU  - Wang William Yu Chung
PY  - 2020
Y1  - 2020/01/01
TI  - Inventory management of perishable health products: a decision framework with non-financial measures
T2  - Industrial Management & Data Systems
PB  - Emerald Publishing Limited
SP  - 987
EP  - 1002
Y2  - 2024/04/25
ER  -