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A supply chain model for Medicare of impoverished people with the policy of targeted poverty alleviation of China

Ketong Zhao (Xidian University, Xian, China)
Bingzhen Sun (School of Economics and Management, Xidian University, Xian, China)

Kybernetes

ISSN: 0368-492X

Article publication date: 16 July 2019

Issue publication date: 20 February 2020

Abstract

Purpose

The purpose of this paper is to present a new method and model for constructing a new decision-making paradigm of Medicare, which can not only satisfy the needs of the sick people but also reduce the possibility of people slipping back to poverty due to diseases under the policy of Targeted Poverty Alleviation (TPA) of China.

Design/methodology/approach

This paper uses the traditional supply chain theory to analyze the Medicare of impoverished people with the policy of TPA of China and transforms it into a multi-layer supply chain optimization decision-making problem. First, a nonlinear integer programming model for poor people’s Medicare decision with opportunity constraints is constructed. To facilitate the solution of the optimal decision scheme, the abovementioned model is transformed into a linear integer programming model with opportunity constraints by using the Newsvendor model for reference. Meanwhile, the scope of the inventory model is discussed, for it can be combined with the construction of the medical insurance system better. Second, the theoretical model is applied to the practical problem. Finally, based on the results of the theoretical model applying the practical problem, we give further improvement and modification of the theoretical model applies it to the actual situation further.

Findings

This paper presents a theoretical model about determine the optimal the inventory, under the framework of traditional supply chain decision-making, for it can be combined with the construction of the medical insurance system better. The theoretical model is applied to the practical problem of the fight against poverty in XX County, China. By using the actual data and MATLAB, optimal decision scheme is obtained.

Originality/value

There are two aspects of value. On the one hand, this paper provides a new way to construct a Medicare system of impoverished people with TPA of China. On the other hand, this paper tries making a new way to handle the storage of medicines and related medical devices at basic standard clinics decision-making problems based on above mentioned Medicare system.

Keywords

Acknowledgements

The work was partly supported by the National Natural Science Foundation of China (71571090), the Youth Innovation Team of Shaanxi Universities, the Fundamental Research Funds for the Central Universities (JB190602) and the Interdisciplinary Foundation of Humanities and Information of Xidian University (RW180167).

Citation

Zhao, K. and Sun, B. (2020), "A supply chain model for Medicare of impoverished people with the policy of targeted poverty alleviation of China", Kybernetes, Vol. 49 No. 3, pp. 896-915. https://doi.org/10.1108/K-03-2019-0180

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited