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Article
Publication date: 23 August 2022

Jean C. Essila

This study aims to identify empirically proven strategies for reducing healthcare supply chain inventory costs.

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Abstract

Purpose

This study aims to identify empirically proven strategies for reducing healthcare supply chain inventory costs.

Design/methodology/approach

The author conducted in-depth interviews in 80 hospitals covering different supply chains. The author treated the healthcare firm as the unit of analysis and examined Vrat's taxonomy of inventory models based on the static and dynamic complexity theories of inventory models to identify an appropriate approach. The author addressed 33 highly priced and moderately priced stock-keeping units from 1,432 items and test several inventory policies. Next, the author applied combinations of inventory models, testing probabilistic hybrid inventory models.

Findings

The study finds that medical supplies, equipment, and medications are indispensable for a quality healthcare system. Hence, healthcare supply chain management (SCM) professionals must adopt basic inventory cost-reduction strategies, implementing inventory software functionalities effectively and efficiently. This study shows that probabilistic hybrid inventory techniques in healthcare SCM effectively determine an optimal stocking level, significantly reducing costs.

Research limitations/implications

This study analyzes data from primary care and (to some extent) secondary care institutions. Although tertiary and quaternary care systems do not represent a large portion of the healthcare system, future research should also address these highly specialized organizations' needs.

Practical implications

This study proposes practical strategies to help continuously improve supply chain operations in healthcare organizations worldwide.

Originality/value

This study suggests probabilistic hybrid inventory models as empirically proven solutions for evaluating stock-keeping units in the healthcare sector. In doing so, the study provides a new healthcare supply chain approach, proposing a modified taxonomy of inventory models.

Details

Benchmarking: An International Journal, vol. 30 no. 8
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 15 August 2008

Brent D. Williams and Travis Tokar

The purpose of this paper is to provide a review of inventory management articles published in major logistics outlets, identify themes from the literature and provide future…

17142

Abstract

Purpose

The purpose of this paper is to provide a review of inventory management articles published in major logistics outlets, identify themes from the literature and provide future direction for inventory management research to be published in logistics journals.

Design/methodology/approach

Articles published in major logistics articles, beginning in 1976, which contribute to the inventory management literature are reviewed and cataloged. The articles are segmented based on major themes extracted from the literature as well as key assumptions made by the particular inventory management model.

Findings

Two major themes are found to emerge from logistics research focused on inventory management. First, logistics researchers have focused considerable attention on integrating traditional logistics decisions, such as transportation and warehousing, with inventory management decisions, using traditional inventory control models. Second, logistics researchers have more recently focused on examining inventory management through collaborative models.

Originality/value

This paper catalogs the inventory management articles published in the major logistics journals, facilitates the awareness and appreciation of such work, and stands to guide future inventory management research by highlighting gaps and unexplored topics in the extant literature.

Details

The International Journal of Logistics Management, vol. 19 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 8 June 2023

Jean C. Essila and Jaideep Motwani

This study aims to focus on the supply chain (SC) cost drivers of healthcare industries in the USA, as SC costs have increased 40% over the last decade. The second-most…

Abstract

Purpose

This study aims to focus on the supply chain (SC) cost drivers of healthcare industries in the USA, as SC costs have increased 40% over the last decade. The second-most significant expense, the SC, accounts for 38% of total expenses in a typical hospital, while most other industries can operate within 10% of their operating cost. This makes healthcare centers supply-chain-sensitive organizations with limited facilities for high-quality healthcare services. As the cost drivers of healthcare SC are almost unknown to managers, their jobs become more complex.

Design/methodology/approach

Guided by pragmatism and positivism paradigms, a cross-sectional study has been designed using quantitative and deductive approaches. Both primary and secondary data were used. Primary data were collected from health centers across the country, and secondary data were from healthcare-related databases. This study examined the attributes that explain the most significant variation in each contributing factor. With multiple regression analysis for predicting cost and Student's t-tests for the significance of contributing factors, the authors of this study examined different theories, including the market-based view and five-forces, network and transaction cost analysis.

Findings

This study revealed that supply, materials and services represent the most significant expenses in primary care. Supply-chain cost breakdown results in four critical factors: facility, inventory, information and transportation.

Research limitations/implications

This study examined the data from primary and secondary care institutions. Tertiary and quaternary care systems were not included. Although tertiary and quaternary care systems represent a small portion of the healthcare system, future research should address the supply chain costs of highly specialized organizations.

Practical implications

This study suggests methods that can help to improve supply chain operations in healthcare organizations worldwide.

Originality/value

This study presents an empirically proven methodology for testing the statistical significance of the primary factors contributing to healthcare supply chain costs. The results of this study may lead to positive policy changes to improve healthcare organizations' efficiency and increase access to high-quality healthcare.

Details

Benchmarking: An International Journal, vol. 31 no. 4
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 12 January 2024

Pengyun Zhao, Shoufeng Ji and Yuanyuan Ji

This paper aims to introduce a novel structure for the physical internet (PI)–enabled sustainable supplier selection and inventory management problem under uncertain environments.

Abstract

Purpose

This paper aims to introduce a novel structure for the physical internet (PI)–enabled sustainable supplier selection and inventory management problem under uncertain environments.

Design/methodology/approach

To address hybrid uncertainty both in the objective function and constraints, a novel interactive hybrid multi-objective optimization solution approach combining Me-based fuzzy possibilistic programming and interval programming approaches is tailored.

Findings

Various numerical experiments are introduced to validate the feasibility of the established model and the proposed solution method.

Originality/value

Due to its interconnectedness, the PI has the opportunity to support firms in addressing sustainability challenges and reducing initial impact. The sustainable supplier selection and inventory management have become critical operational challenges in PI-enabled supply chain problems. This is the first attempt on this issue, which uses the presented novel interactive possibilistic programming method.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 1 August 2024

Bowen Miao, Xiaoting Shang, Kai Yang, Bin Jia and Guoqing Zhang

This paper studies the location-inventory problem (LIP) in pallet pooling systems to improve resource utilization and save logistics costs, which is a new extension of the…

Abstract

Purpose

This paper studies the location-inventory problem (LIP) in pallet pooling systems to improve resource utilization and save logistics costs, which is a new extension of the classical LIP and also an application of the LIP in pallet pooling systems.

Design/methodology/approach

A mixed-integer linear programming is established, considering the location problem of pallet pooling centers (PPCs) with multi-level capacity, multi-period inventory management and bi-directional logistics. Owing to the computational complexity of the problem, a hybrid genetic algorithm (GA) is then proposed, where three local searching strategies are designed to improve the problem-solving efficiency. Lastly, numerical experiments are carried out to validate the feasibility of the established model and the efficiency of the proposed algorithm.

Findings

The results of numerical experiments show that (1) the proposed model can obtain the integrated optimal solution of the location problem and inventory management, which is better than the two-stage model and the model with single-level capacity; (2) the total cost and network structure are sensitive to the number of PPCs, the unit inventory cost, the proportion of repairable pallets and the fixed transportation cost and (3) the proposed hybrid GA shows good performance in terms of solution quality and computational time.

Originality/value

The established model extends the classical LIP by considering more practical factors, and the proposed algorithm provides support for solving large-scale problems. In addition, this study can also offer valuable decision support for managers in pallet pooling systems.

Article
Publication date: 4 November 2020

Leandro Reis Muniz, Samuel Vieira Conceição, Lásara Fabrícia Rodrigues, João Flávio de Freitas Almeida and Tãssia Bolotari Affonso

The purpose of this paper is to present a new hybrid approach based on criticality analysis and optimisation to deal with spare parts inventory management in the initial…

1723

Abstract

Purpose

The purpose of this paper is to present a new hybrid approach based on criticality analysis and optimisation to deal with spare parts inventory management in the initial provisioning phase in the mining industry. Spare parts represent a significant part of mining companies' expenditures, so it is important to develop new approaches to reduce the total inventory value of these items.

Design/methodology/approach

This hybrid approach combines qualitative and quantitative methods based on VED (vital, essential and desirable) analysis, analytical hierarchical process (AHP), and e-constraint optimisation method to obtain the spare parts to be stocked. The study was applied to a large mining company. The mineral sector was chosen due to the great importance to the emerging Brazilian economy and the lack of researches in this sector. In addition, the spare parts have a relevant weight on the total inventory cost.

Findings

Present a novel approach combining multi-objective optimisation and multi-criteria evaluation approaches to tackle the inventory decision in spare parts management. This work also defines and classifies relevant criteria for spare parts management in the mineral sector validated by specialists. The proposed approach achieves an average increase of 20.2% in the criticality and 16.6% in the number of items to be stocked compared to the historical data of the surveyed company.

Research limitations/implications

This paper applies the proposed approach to a mining company in Brazil. Future research in other companies or regions should analyse the adequacy of the criticality criteria, hierarchy and weights adopted in this paper.

Practical implications

The proposed approach is useful for mining industries that deal with a large variety of resource constraints as it helps in formulating appropriate spare part strategies to rationalise financial resources at both tactical and strategic levels.

Originality/value

The paper presents a new hybrid method combining the AHP a multi-criteria decision making (MCDM) approach coupled with e-constraint optimisation to deal with spare parts inventory management allowing for a better spare parts inventory analysis in the initial provisioning phase and providing managers with a systematic tool to analyse the trade-off between spare parts criticality and total inventory value.

Details

The International Journal of Logistics Management, vol. 32 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 7 July 2023

Yasmina Maïzi and Ygal Bendavid

Assess the realistic impacts of implementing an Radio Frequency Identification (RFID)/Internet of Things (IoT) uniforms’ distribution system for managing medical personnel’s…

495

Abstract

Purpose

Assess the realistic impacts of implementing an Radio Frequency Identification (RFID)/Internet of Things (IoT) uniforms’ distribution system for managing medical personnel’s scrubs in operating rooms. The authors use a hybrid simulation framework to address the following objectives and challenges: a) reduce and control operating rooms’ level of inventory; b) stabilize scrubs’ demand and c) improve infection control and prevention of cross-contamination (through scrubs over manipulation and hoarding).

Design/methodology/approach

The authors adopt a Design Science approach. This methodological approach is used to design, develop, create and evaluate information technology “artifacts” (e.g. constructs, models, methods and instantiations) intended to solve organizational problems and make research contributions (Peffers et al., 2007). More specifically, the authors follow the Design Science Research Methodology process model which includes six steps: problem identification and motivation, definition of the objectives for a solution, design and development, demonstration, evaluation, and communication.

Findings

To assess the realistic impacts of implementing an RFID-IoT uniforms’ distribution system for managing medical personnel’s scrubs in operating rooms, the authors adopted a design science approach and initiated the research by documenting the business case and reviewed the existing literature to build a comparative analysis of existing uniforms’ distribution systems. The authors used a hybrid simulation model to assess the impact of three business cases: present mode of operation, implementing smart shelves or the smart distributors. The authors show that smart dispensers allow a greater control on scrubs’ utilization while eliminating the cross-contamination of the medical personnel.

Practical implications

Through this research study, the authors provide hospitals’ managers a scientific support for uniforms’ (scrubs) distribution process improvement. The authors use a hybrid simulation model to compare innovative solutions for uniforms’ distribution systems in the form of “smart cabinets” supported by Radio Frequency Identification (RFID)/Internet of Things (IoT) technologies and choose the most appropriate design for the hospital to meet two main challenges: a) inefficiency of uniform replenishment-distribution system and b) noncompliancy with infection control regulations caused by the distribution system.

Originality/value

From a methodological perspective, this paper addresses concerns from researchers calling quantitative research methods and using case-based research strategy to address IoT issues and assess the system in practice. From a broader point of view, this work confirms the predominant interest of RFID-IoT research work in the arena of supply chain management and logistics as the technology is used for tracking purpose and for monitoring applications. It is also one response to the research community suggesting that “hospitals should evaluate the medical effectiveness of the new technologies as well as the cost before adoption”.

Details

Business Process Management Journal, vol. 29 no. 6
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 28 January 2020

Mohammad Saeid Atabaki, Seyed Hamid Reza Pasandideh and Mohammad Mohammadi

Lot-sizing is among the most important problems in the production and inventory management field. The purpose of this paper is to move one step forward in the direction of the…

Abstract

Purpose

Lot-sizing is among the most important problems in the production and inventory management field. The purpose of this paper is to move one step forward in the direction of the real environment of the dynamic, multi-period, lot-sizing problem. For this purpose, a two-warehouse inventory system, imperfect quality and supplier capacity are simultaneously taken into consideration, where the aim is minimization of the system costs.

Design/methodology/approach

The problem is formulated in a novel continuous nonlinear programming model. Because of the high complexity of the lot-sizing model, invasive weed optimization (IWO), as a population-based metaheuristic algorithm, is proposed to solve the problem. The designed IWO benefits from an innovative encoding–decoding procedure and a heuristic operator for dispersing seeds. Moreover, sequential unconstrained minimization technique (SUMT) is used to improve the efficiency of the IWO.

Findings

Taking into consideration a two-warehouse system along with the imperfect quality items leads to model nonlinearity. Using the proposed hybrid IWO and SUMT (SUIWO) for solving small-sized instances shows that SUIWO can provide satisfactory solutions within a reasonable computational time. In comparison between SUIWO and a parameter-tuned genetic algorithm (GA), it is found that when the size of the problem increases, the superiority of SUIWO to GA to find desirable solutions becomes more tangible.

Originality/value

Developing a continuous nonlinear model for the concerned lot-sizing problem and designing a hybrid IWO and SUMT based on a heuristic encoding–decoding procedure are two main originalities of the present study.

Details

Journal of Modelling in Management, vol. 15 no. 4
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 3 July 2017

Dênis Gustavo Leonardo, Bruno Sereno, Daniel Sant Anna da Silva, Mauro Sampaio, Alexandre Augusto Massote and Jairo Celso Simões

Shop floor control systems are generally major points of discussion in production planning and control literature. The purpose of this paper is to investigate how lean production…

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Abstract

Purpose

Shop floor control systems are generally major points of discussion in production planning and control literature. The purpose of this paper is to investigate how lean production control principles can be used in a make-to-order (MTO) job shop, where the volume is typically low and there is high variety. This paper examines the procedures involved in implementing a constant work-in-process (CONWIP)/Kanban hybrid system in the shop floor environment and also provides insights and guidelines on the implementation of a hybrid system in a high-variety/low-volume environment.

Design/methodology/approach

The authors review literature on Kanban, CONWIP, and CONWIP/Kanban hybrid systems to analyze how lean production control principles can be used in a MTO job shop. The second part focuses on the process of implementation. Using a case study of a manufacturer of electromechanical components for valve monitoring and controls, the paper describes how the operation is transformed by for more efficient shop floor control systems. Real experiments are used to compare pre- and post-improvement performance.

Findings

The study shows that the proposed hybrid Kanban-CONWIP system reduced the cycle time and achieved an increase of 38 percent in inventory turnover. The empirical results from this pilot study provide useful managerial insights for a benchmarking analysis of the actions to be taken into consideration by companies that have similar manufacturing systems.

Research limitations/implications

The statistic generalization of the results is impossible due to the use of a single case method of study.

Originality/value

This paper provides insights and guidelines on the implementation of a hybrid system in a high-variety/low-volume environment. The literature on real applications of hybrid CONWIP/Kanban by case study is limited.

Details

Journal of Manufacturing Technology Management, vol. 28 no. 6
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 12 September 2023

Kemal Subulan and Adil Baykasoğlu

The purpose of this study is to develop a holistic optimization model for an integrated sustainable fleet planning and closed-loop supply chain (CLSC) network design problem under…

Abstract

Purpose

The purpose of this study is to develop a holistic optimization model for an integrated sustainable fleet planning and closed-loop supply chain (CLSC) network design problem under uncertainty.

Design/methodology/approach

A novel mixed-integer programming model that is able to consider interactions between vehicle fleet planning and CLSC network design problems is first developed. Uncertainties of the product demand and return fractions of the end-of-life products are handled by a chance-constrained stochastic program. Several Pareto optimal solutions are generated for the conflicting sustainability objectives via compromise and fuzzy goal programming (FGP) approaches.

Findings

The proposed model is tested on a real-life lead/acid battery recovery system. By using the proposed model, sustainable fleet plans that provide a smaller fleet size, fewer empty vehicle repositions, minimal CO2 emissions, maximal vehicle safety ratings and minimal injury/illness incidence rate of transport accidents are generated. Furthermore, an environmentally and socially conscious CLSC network with maximal job creation in the less developed regions, minimal lost days resulting from the work's damages during manufacturing/recycling operations and maximal collection/recovery of end-of-life products is also designed.

Originality/value

Unlike the classical network design models, vehicle fleet planning decisions such as fleet sizing/composition, fleet assignment, vehicle inventory control, empty repositioning, etc. are also considered while designing a sustainable CLSC network. In addition to sustainability indicators in the network design, sustainability factors in fleet management are also handled. To the best of the authors' knowledge, there is no similar paper in the literature that proposes such a holistic optimization model for integrated sustainable fleet planning and CLSC network design.

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