Inventory control for point-of-use locations in hospitals

Bijvank, Marco; Vis, Iris F. A.

doi:10.1057/jors.2011.52

Cited by 56 publications

(31 citation statements)

References 29 publications

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“…Generally, inventory in hospitals can be of three types: perishable (such as blood, plasma and medicines), non-disposable (such as equipment, instruments, etc.) and disposable items (such as gloves, masks, cotton bandages, to name a few) (Bijvank and Vis, 2012). The stock of these disposable and non-disposable items is held in multiple places of the hospitals such as the centralised stores or warehouse, OPD store, OP pharmacy, inpatient stores, inpatient pharmacy, etc.…”

Section: Introductionmentioning

confidence: 99%

Application of a hybrid selective inventory control technique in a hospital: a precursor for inventory reduction through lean thinking

Gurumurthy

Nair

Vinodh

2020

TQM

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PurposeThe cost of providing healthcare is spiralling up in recent times. On the one hand, patients expect the highest quality of service, while on the other hand, the managers of the healthcare services want to minimise the total operating expenses. Hence, healthcare organisations implement lean thinking (LT) to achieve these twin objectives. LT reduces the eight wastes that are prevalent in the healthcare processes and functions. In particular, if the wasteful inventories related to expensive medical supplies are reduced, the resulting cost savings can help in providing affordable and accessible healthcare.Design/methodology/approachHence, in this paper, a case study of a hospital is presented where LT is implemented. One of the projects was related to inventory reduction in the store of the catheterisation laboratory (cath lab). A hybrid methodology called multi-unit selective inventory control (MUSIC) that combined these three dimensions (3D), namely, consumption value, criticality and lead time or ease of availability was used to classify the medical supplies into different categories.FindingsBased on the results obtained, various inventory systems and the associated tools and techniques of LT were proposed. For example, a deep dive into the A-class items revealed that some of the medical supplies fell under both vital and scarce categories. Hence, it was recommended that the case hospital should follow the economic order quantity (EOQ) with safety stock approach as these items were to be shipped from other states in India. Subsequently, the focus should be on developing a local supplier and attempts should be made to establish a kanban system with adequate information sharing.Practical implicationsThis study demonstrates the step-by-step methodology of MUSIC-3D which would guide the procurement managers to apply the same in their organisation. It also helps them in identifying appropriate elements of LT for inventory reduction before the actual deployment.Originality/valueNone of the papers has utilised the MUSIC-3D methodology as a precursor for inventory reduction, specifically within the domain of LT. Similarly, identifying and proposing different type of inventory systems and various LT practices based on this unique method is a novel attempt.

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Section: Introductionmentioning

confidence: 99%

Application of a hybrid selective inventory control technique in a hospital: a precursor for inventory reduction through lean thinking

Gurumurthy

Nair

Vinodh

2020

TQM

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“…Recent papers that have focused on the optimization of hospital inventory include [1,3,4,6] and [27]. A Markov decision approach is used in [3] to optimize two models, one focused on meeting specific service level requirements, and the other maximizing service levels within constrained inventory storage space. The model presented in [1] considers storage capacity and physical inventory size for a group of stockless items.…”

Section: The Hospital Supply Chainmentioning

confidence: 99%

Point-of-use hospital inventory management with inaccurate usage capture

Neve

Schmidt²

2021

Health Care Manag Sci

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Many hospital supply chains in the US follow a "stockless" structure, often implemented with the acquisition of new systems promising improved efficiencies and responsiveness. Despite vendor promises, supply chain gains from new technology are often unfulfilled or result in a reduction of performance. A critical component of achieving promised gains is the hospital's ability to accurately and consistently capture hospital inventory use. In practice, recording demand with perfect, 100% accuracy is infeasible, so our models condition on the level of accuracy in a particular hospital department, or point-ofuse (POU) inventory location. Similar to previous literature, we consider actual net inventory and recorded net inventory in developing the system performance measures. We develop two models, optimizing either cost or service level, and we assume a periodic-review, base-stock (or par-level) inventory policy with full backordering. In addition to choosing the optimal order-up-to level, we seek the optimal frequency of inventory counts to reconcile inaccurate records. Results from both models provide insights for supply chain managers in the hospital setting, as well as hospital administrators considering the adoption of similar technologies or systems. Keywords Hospital supply chain Article Highlights• As healthcare decision-makers consider inventory levels and their related inventory systems, inaccuracy at the point-of-use can create significant operational hurdles when trying to either reduce costs, or to maintain high service levels. • We present two inventory decision models that consider inaccuracy, specifically in a hospital setting where front-line patient care staff use an open-bin barcode or button-scan inventory system prevalent in hospitals in the United States, which is also tied to patient billing. These specific types of inventory systems have not been Benjamin V. Neve

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“…There are two traditional replenishment policies that have been widely used in the industrial setting: periodic review policy (the inventory is replenished at the beginning of the replenishment period) and continuous review policy (the inventory is replenished when the warehouse is empty) (Rosales 2015). Bijvank and Vis (2012) explore the application of two types of periodic review policy in hospital inventory replenishment. The first model maximizes the hospital service level with a capacity constraint while the second model minimizes the hospital capacity with a service-level constraint.…”

Section: Literature Reviewmentioning

confidence: 99%

Coordinating inventory sharing with retailer's return in the consignment contracts

Zhang

Pang

Yan

2020

International Journal of Production Research

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Hospitals purchase medical supplies from the dealer on consignment contracts. Dealer provides return policy for unused inventory but charging a return fee. Two hospitals could share inventory which reduces the amount of return to the dealer. Motivated by this consignment contract policy for the medical supply chain, we develop a common dealer and two independent retailers framework that considers retailers' sharing action and return problem. We aim at developing a coordinating mechanism to manage the retailers' sharing and return action that benefits both the dealer and retailers. The dealer-dominated sharing and retailer-dominated sharing are compared from the perspective of sharing performance and expected profits.We also analyze the condition that dealer is better off from retailers' sharing when the dealer has the power to encourage retailers' sharing, and the dealer's trading preference for a non-cooperative retailer or cooperative retailers when the dealer has no power to encourage retailers' sharing. Numerical experiments are conducted to examine the sensitivity of retailers' sharing decisions, retailers' and dealer's profit to the return price.

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Inventory control for point-of-use locations in hospitals

Cited by 56 publications

References 29 publications

Application of a hybrid selective inventory control technique in a hospital: a precursor for inventory reduction through lean thinking

Application of a hybrid selective inventory control technique in a hospital: a precursor for inventory reduction through lean thinking

Point-of-use hospital inventory management with inaccurate usage capture

Coordinating inventory sharing with retailer's return in the consignment contracts

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