[1] Zhu Li, Wang Haiyan, Zhao Lindu,. Comparative research on three-echelon and two-echelonmedicine inventory model with positive lead-time [J]. Journal of Southeast University (English Edition), 2005, 21 (4): 500-505. [doi:10.3969/j.issn.1003-7985.2005.04.025]

Copy

Comparative research on three-echelon and two-echelonmedicine inventory model with positive lead-time()

Share：

Journal of Southeast University (English Edition)[ISSN:1003-7985/CN:32-1325/N]

Volumn:

21

Issue:

2005 4

Page:

500-505

Research Field:

Mathematics, Physics, Mechanics

Publishing date:

2005-12-30

Info

Title:

Comparative research on three-echelon and two-echelonmedicine inventory model with positive lead-time

Author(s):

Zhu Li;  Wang Haiyan;  Zhao Lindu

College of Economics and Management, Southeast University, Nanjing 210096, China

Keywords:

healthcare supply chain;  inventory management;  lead-time;  optimization model

PACS:

O227

DOI:

10.3969/j.issn.1003-7985.2005.04.025

Abstract:

According to the principle of minimizing total cost, the three-echelon optimized medical inventory model with stochastic lead-time and two-echelon optimized medicine inventory model with fixed lead-time are established.The relationship between lead-time and inventory cost is studied by Matlab software.It shows that the variety of lead-time has an important effect on medicine inventory systems.Numerical simulation and sensitivity analysis of two models are presented by Lingo software.Based on analysis, it is concluded that the two-echelon model with lead-time results in inventory cost savings, and keeps the quality of care as reflected in service levels when compared with the three-echelon network structure.

References:

[1] Prashant N D.A systematic approach to optimization of inventory management functions[J].Hospital Material Management Quarterly, 1991, 12(4): 34-38.
[2] Lunn T.Ways to reduce inventory [J].Hospital Material Management Quarterly, 2000, 21(4):1-7.
[3] Nicholson L, Vakharia A J, Erenguc S S.Outsourcing inventory management decisions in healthcare:models and application [J].European Journal of Operational Research, 2004, 154(1):271-290.
[4] Williams C L, Patuwo B E.A perishable inventory model with positive order lead times [J].European Journal of Operational Research, 1999, 116(2):352-373.
[5] Liu Liming, Yang Tao.An(s, S)random lifetime inventory model with a positive lead time [J].European Journal of Operational Research, 1999, 113(1):52-63.
[6] Bookbinder J H, Cakanyildirim M.Random lead times and expedited orders in(Q, r)inventory systems [J].European Journal of Operational Research, 1999, 115(2):300-313.
[7] Zhang Chunxiao, Xie Jinxing.Optimization of a two-level distribution inventory system with random lead-time and stochastic demand progress [J]. Mathematics in Practice and Theory, 2004, 34(7):1-8.(in Chinese)
[8] Ma Shihua, Lin Yong.An inventory model based on stochastic lead time [J].Computer Integrated Manufacturing Systems, 2002, 8(5):396-398.(in Chinese)
[9] Liu Jian, Ma Shihua.Research on model of supply chain inventory coordination and optimization [J].Journal of Management Sciences, 2004, 7(4):1-8.(in Chinese)

Memo

Memo:

Biographies: Zhu Li(1983—), female, graduate;Wang Haiyan(corresponding author), male, doctor, professor, hywang@seu.edu.cn.

Common functions