Managing the essential medicines stock at rural healthcare systems in India

Abstract

Purpose The purpose of this paper is to eliminate the medicine stock-out problem by building an optimum medicine stock in rural healthcare centers in India. Design/methodology/approach Data associated with inflow and outflow of a specific medicine (folic acid tablets) arer collected from all consecutive supply chain stages during the survey. While conducting the survey, it is found that several medicines are out of stock owing to uncertain lead time and demand. Integrating with quantity discount and min–max (s, S) inventory policy, two models are developed using system dynamics: one is Model 1 with constant lead time and uncertain demand, and the other is Model 2 with both uncertain lead time and demand. Findings Both models are simulated for a period of one year on Stella 9.1 platform. The results are compared with actual data, and the comparison shows significant improvement of the medicine stock at all downstream stages, while maintaining a certain safety stock. Further, Model 2 suggests a larger stock than Model 1 at each point of time. Practical implications Despite numerous issues, the stocks of medicine in rural healthcare systems can be improved as suggested by the models. The models depict the behavior of inventory stock at each stage of the supply chain and act as a function of time that could be used in the form of a prediction tool for the policymakers. Originality/value This paper is one of the first papers that had developed the model of the medicine supply chain in rural parts of a developing country. It provides a generic framework for the stock assessment and improvement throughout the supply chain.

A collaborative approach to maintaining optimal inventory and mitigating stockout risks during a pandemic: capabilities for enabling health-care supply chain resilience

“…While research on optimal medicine stocks focuses on uncertain lead times and demands, it does so in a context where uncertainty and risk probabilities can be estimated (e.g. Kumar and Kumar, 2018).…”

Inventory Management Practices during COVID 19 Pandemic to Maintain Liquidity Increasing Customer Service level in an Industrial Products Company in Mexico

“…By having a correct level of service and reducing delivery times, the decrease in inventory level is favored. The factors contributing to a shortage in medication shall be known, and evaluation is to be made from the demand pattern and all processes of the value chain intervening up to the delivery of the medication [17].…”

Dynamic Performance Management: An Approach for Managing the Common Goods

“…Traffic and emissions impact [185] advantages of two policies, which reduces the emission of vehicle pollutants and alleviate traffic congestion Essential medicines stock [186] medicine supply chain in rural parts of a developing country Electric vehicle charging [187] charge operators' profits and reduce charge price Technology park [188] investment of the development of a technology park…”

“…Traffic and emissions impact [185] advantages of two policies, which reduces the emission of vehicle pollutants and alleviate traffic congestion Essential medicines stock [186] medicine supply chain in rural parts of a developing country Electric vehicle charging [187] charge operators' profits and reduce charge price Technology park [188] investment of the development of a technology park Childhood overweight [189] government and stakeholders responsible for meeting the target of reducing childhood overweight Renewable energy [190] evolution from feed-in tariff to renewable portfolio standards scheme, influenced by renewable and strategies…”