Optimal Supply Network with Vendor Managed Inventory in a Healthcare System with RFID Investment Consideration

Supply Chain Management in the healthcare sector faces several significant challenges, including complexity in healthcare systems, high supply chain costs, balancing quality and costs, delay in delivery, product availability from vendors, inventory waste, and unpredictability and uncertainty. Among those challenges, having an effective inventory management system with an optimal supply network is important to improve the match between supply and demand, which would improve the performance of for healthcare firms. Vendor Managed Inventory (VMI) system is a replenishment solution in which the vendor monitors and decides the time and the quantity of the inventory replenishment of their customers subject to their demand information exchange. A VMI contract in the location-inventory assignment problem is a decision tool for management in the healthcare industry, in which it enables the management to have a cost and service effective decision tool to critically re-evaluate and examine all areas of operations in a SC network looking for avenues of optimization. This dissertation is based on a real-world problem arising from one of the world\u27s leading medical implant supply company applied to a chain of hospitals in the province of Ontario. The chain of hospitals under study consists of 147 hospitals located in Ontario, Canada. The vendor is a supplier of three types of medical implants (a heart valve, an artificial knee, and a hip). In Chapter 2 of this dissertation, we present an optimal supply healthcare network with VMI and with RFID consideration, in which we shed light on the role of the VMI contract in the location-inventory assignment problem and integrate it with both the replenishment policy assignment and the Radio Frequency Identification (RFID) investment allocation assignment in healthcare SC networks using both VMI and direct delivery policies. A numerical solution approach is developed in the case of the deterministic demand environment, and we end up with computational results and sensitivity analysis for a real-world problem to highlight the usefulness and validate the proposed model. We extend our research of integrating the VMI contract in the location-inventory assignment problem with the replenishment policy assignment under a deterministic demand environment to include the stochastic demand environment. The impact of the uncertainty of the demand as a random variable following two types of distributions, normal and uniform distributions, is studied in Chapter 3. Motivated by the lack of investigations and comparative studies dealing with the preference of dealing with VMI contracts to other traditional Retailer Managed Inventory (RMI) systems, we provide in Chapter 4 of this dissertation a comparative study in which we compare the total cost of the VMI system with another two situations of traditional RMI systems: first, a traditional RMI system with a continuous replenishment policy for all hospitals and with assigned storage facilities and second, a traditional RMI system with a direct delivery policy for all hospitals without assigning a storage facility. Computational results, managerial insights, sensitivity analysis, and solution methodologies are provided in this dissertation. Keywords: Vendor Managed Inventory, healthcare system, location-inventory, RFID technology, supply-chain network, stochastic demand, location-inventory assignment problem, and retailer managed Inventory

Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain

The evolution of industrial development since the 18th century is now experiencing the fourth industrial revolution. The effect of the development has propagated into almost every sector of the industry. From inventory to the circular economy, the effectiveness of technology has been fruitful for industry. The recent trends in research, with new ideas and methodologies, are included in this book. Several new ideas and business strategies are developed in the area of the supply chain management, logistics, optimization, and forecasting for the improvement of the economy of the society and the environment. The proposed technologies and ideas are either novel or help modify several other new ideas. Different real life problems with different dimensions are discussed in the book so that readers may connect with the recent issues in society and industry. The collection of the articles provides a glimpse into the new research trends in technology, business, and the environment

Quality and Operations Management in Food Supply Chains: A Literature Review

We present a literature review on quality and operations management problems in food supply chains. In food industry, the quality of the food products declines over time and should be addressed in the supply chain operations management. Managing food supply chains with operations management methods not only generates economic benefit, but also contributes to environmental and social benefits. The literature on this topic has been burgeoning in the past few years. Since 2005, more than 100 articles have been published on this topic in major operations research and management science journals. In this literature review, we concentrate on the quantitative models in this research field and classify the related articles into four categories, that is, storage problems, distribution problems, marketing problems, and food traceability and safety problems. We hope that this review serves as a reference for interested researchers and a starting point for those who wish to explore it further

Impact of RFID information-sharing coordination over a supply chain with reverse logistics

Companies have adopted environmental practices such as reverse logistics over the past few decades. However, studies show that aligning partners inside the green supply chain can be a substantial problem. This lack of coordination can increase overall supply chain cost. Information technology such as Radio Frequency Identification (RFID) has the potential to enable decentralized supply chain coordinate their information. Even though there are research that address RFID on traditional supply chain, few researches address how to coordinate RFID information sharing in a green supply chain. We study, through simulation experiments, two types of RFID information-sharing coordination under different configurations related with their inventory policies: basic and advanced. Statistical analyses show that better results can be presented in advanced RFID configuration given new coordination and inventory policy decisions presented. In addition, these findings shows what are the RFID information-sharing coordination that can provide better system improvement depending on the supply chain scenarios and factors

Augmenting the distribution of goods from warehouses in dynamic demand environments using intelligent agents

Warehouses are being impacted by increasing e-commerce and omni-channel commerce. Future innovation may predominantly involve automation but many warehouses remain manually operated. The golden rule of material handling is smooth product flow, but there are day-to-day operational issues that occur in the warehouse that can impact this and order fulfilment. Standard operational process is paramount to warehouse operational control but inflexible processes don’t allow for a dynamic response to real-time operational constraints. The growth of IoT sensor and data analytics technology provide new opportunities for designing warehouse management systems that detect and reorganise around real-time constraints to mitigate the impact of day-to-day warehouse operational issues. This paper presents an intelligent agent framework for basic warehouse management systems that is distributed, is structured around operational constraints and includes the human operator at operational and decision support levels. An agent based simulation was built to demonstrate the viability of the framework

From supply chains to demand networks. Agents in retailing: the electrical bazaar

A paradigm shift is taking place in logistics. The focus is changing from operational effectiveness to adaptation. Supply Chains will develop into networks that will adapt to consumer demand in almost real time. Time to market, capacity of adaptation and enrichment of customer experience seem to be the key elements of this new paradigm. In this environment emerging technologies like RFID (Radio Frequency ID), Intelligent Products and the Internet, are triggering a reconsideration of methods, procedures and goals. We present a Multiagent System framework specialized in retail that addresses these changes with the use of rational agents and takes advantages of the new market opportunities. Like in an old bazaar, agents able to learn, cooperate, take advantage of gossip and distinguish between collaborators and competitors, have the ability to adapt, learn and react to a changing environment better than any other structure. Keywords: Supply Chains, Distributed Artificial Intelligence, Multiagent System.Postprint (published version

Efficient Inventory Management of Hospital Supply Chains Using a Sim-Heuristic Approach

Inventory management is a vital section of a supply chain system. In a hospital setting, where delivering high quality patient care is a prime concern, inventory management is often overlooked. With the ever increasing demand for products, it becomes challenging to manage inventory in a dynamic facility such as a hospital. Although there is abundant research in supply chain, seldom have the proposed methods found their way into execution in actual hospital settings. Additionally, much of the literature focuses on particular aspects of the supply chain. Current methods used in practice lead to system performance that is suboptimal, resulting in too much or too short inventory in stock, overtime work to manage supplies, expedited shipments and potentially substandard quality of care delivered to patients. Having the right products available at the point-of-use is important to the efficient and effective treatment of patients. With cost and budget constraints, merely managing demand is not sufficient. There is a need to develop a system design which enables hospitals and healthcare institutions to implement and benefit from methods that have been developed or are being developed for optimal inventory management systems. In this research, we study the hospital supply chain from manufacturers/distribution centers to the point-of-use within a hospital unit, taking into account the integration and implementation of the various echelon of the supply chain system. In particular, we design and develop a sim-heuristic methodology using operations research to evaluate inventory and operational decision variables based on service level and operational costs, subject to variability in demand and lead-time. In addition, we demonstrate the capabilities and limitations of the methodology and compare alternate system configurations including a (Q, r) inventory system and Kanban system