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Investigation of the influence of product variety on inventories in hospitals

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Języki publikacji
EN
Abstrakty
EN
The literature on product variety provides great insights into various businesses. However, little research has been conducted on product variety in the healthcare industry. This study aims to explore the influence of product variety on inventory in hospitals. Since most hospitals are known to replenish products using a homegrown ad-hoc system, a model is developed for exploring all possible product combinations and substitutions. This article presents the behaviour of product substitution, which may be either one-to-one or many-to-one for both sterile and non-sterile products, in the hospital with cost factors. It discusses the product variety reduction and its corresponding cost impacts. The data on a hospital inventory over the course of six years has been procured from a hospital in Norway. Based on the results, the hospital could have a potential product variety reduction of approximately 11% and cost savings from the spending of approximately NOK 3.6 million. Reducing the variety of products in hospital inventories proves to be an approach to reducing costs. The model developed for the research.
Rocznik
Strony
34--44
Opis fizyczny
Bibliogr. 16 poz., tab.
Twórcy
  • Molde University College — Specialised University in Logistics, Norway
  • Molde University College — Specialised University in Logistics, Norway
  • Molde University College — Specialised University in Logistics, Norway
Bibliografia
  • Borin, N., Farris, P. W., & Freeland, J. R. (1994). A Model for Determining Retail Product Category Assortment and Shelf Space Allocation. Decision Sciences, 25(3), 359-384. doi: 10.1111/j.1540-5915.1994.tb00809.x
  • Erens, F., & Verhulst, K. (1997). Architectures for product families. Computers in Industry, 33(2), 165-178.
  • Fujita, K., Sakaguchi, H., & Akagi, S. (1999). Product variety deployment and its optimization under modular architecture and module commonalization. Paper presented at the ASME Design Engineering Technical Conferences – Design for Manufacturing, Las Vegas, Nevada.
  • Jayaraman, V., Srivastava, R., & Benton, W.C. (1998). A joint optimization of product variety and ordering approach. Computers & Operations Research, 25 (7-8), 557-566. doi:10.1016/S0305-0548(98)00010-0
  • Kritchanchai, D., & Meesamut, W. (2015). Developing Inventory Management in Hospital. International Journal of Supply Chain Management, 4(2), 11-19.
  • Landry, S., & Beaulieu, M. (2013). The Challenges of Hospital Supply Chain Management, from Central Stores to Nursing Units. In T.B. Denton (Ed.), Handbook of Healthcare Operations Management: Methods and Applications (pp. 465-482). New York, United States: Springer New York.
  • Malone, T.W. (1987). Modeling Coordination in Organizations and Markets. Management Science, 33(10), 1317-1332. doi:10.1287/mnsc.33.10.1317
  • McBride, R.D., & Zufryden, F.S. (1988). An Integer Programming Approach to the Optimal Product Line Selection Problem. Marketing Science, 7(2), 126-140. doi:10.1287/mksc.7.2.126
  • Nishino, N., Takenaka, T., Koshiba, H., & Kodama, K. (2014). Customer preference based optimization in selecting product/service variety. CIRP Annals - Manufacturing Technology, 63(1), 421-424. doi: 10.1016/j.cirp.2014.03.109
  • Ozcan, Y.A. (2005). Quantitative methods in health care management: techniques and applications (vol. 4). San Francisco, United States: John Wiley & Sons.
  • Rachmania, I.N., & Basri, M.H. (2013) Pharmaceutical inventory management issues in hospital supply chains. Management, 3(1), 1-5.
  • Sanchez, S.M. (2005). Work smarter, not harder: guidelines for designing simulation experiments. Paper presented at the Proceedings of the 37th conference on Winter simulation, Orlando, Florida.
  • Tucker, A.L., & Edmondson, A.C. (2003). Why Hospitals Don’t Learn from Failures: Organizational and Psychological Dynamics that Inhibit System Change. California Management Review, 45(2), 55-72. doi: 10.2307/41166165
  • Varghese, V., Rossetti, M., Pohl, E., Apras, S., & Marek, D. (2012). Applying Actual Usage Inventory Management Best Practice in a Health Care Supply Chain. International Journal of Supply Chain Management, 1(2), 1-10.
  • Wan, X., Evers, P.T., & Dresner, M.E. (2012). Too much of a good thing: The impact of product variety on operations and sales performance. Journal of Operations Management, 30(4), 316-324. doi:10.1016/j.jom.2011.12.002
  • Wang, H., Zhu, X., Wang, H., Hu, S.J., Lin, Z., & Chen, G. (2011). Multi-objective optimization of product variety and manufacturing complexity in mixed-model assembly systems. Journal of Manufacturing Systems, 30(1), 16-27. doi:10.1016/j.jmsy.2011.03.002
Typ dokumentu
Bibliografia
Identyfikator YADDA
bwmeta1.element.baztech-3c5df5aa-a42e-40e3-b926-f77c85cd8db8
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