Managerial research on the pharmaceutical supply chain – A critical review and some insights for future directions

Predicting pharmaceutical supply chain disruptions before and during the COVID-19 pandemic

Disruptions to the pharmaceutical supply chain (PSC) have negative implications for patients, motivating their prediction to improve risk mitigation. Although data analytics and machine learning methods have been proposed to support the characterization of probabilities to inform decisions and risk mitigation strategies, their application in the PSC has not been previously described. Further, it is unclear how well these models perform in the presence of emergent events representing deep uncertainty such as the COVID-19 pandemic. This article examines the use of data-driven models to predict PSC disruptions before and during the COVID-19 pandemic. Using data on generic drugs from the pharmacy supply chain division of a Fortune 500 pharmacy benefit management firm, we have developed predictive models based on the naïve Bayes algorithm, where the models predict whether a specific supplier or whether a specific product will experience a supply disruption in the next time period. We find statistically significant changes in the relationships of nearly all variables associated with product supply disruptions during the pandemic, despite pre-pandemic stability. We present results showing how the sensitivity, specificity, and false positive rate of predictive models changed with the onset of the COVID-19 pandemic and show the beneficial effects of regular model updating. The results show that maintaining model sensitivity is more challenging than maintaining specificity and false positive rates. The results provide unique insight into the pandemic's effect on risk prediction within the PSC and provide insight for risk analysts to better understand how surprise events and deep uncertainty affect predictive models.

A dynamic management model for sustainable drug supply chain in hospital pharmacies in Iran

BACKGROUND

Sustainable supply chain management encompasses the strategic coordination and control of material, information, and financial flows, as well as the collaborative efforts among the entities engaged in the medicinal supply chain. This research proposes a dynamic and sustainable supply chain management model tailored explicitly for the inpatient pharmacies of Medical Centers and Hospitals affiliated with Iran University of Medical Sciences.

METHODS

This is a quantitative study in terms of research objective and a qualitative study based on the stages in the conceptual development of the model. Therefore, the current study can be considered a mixed-methods approach. After identifying the key factors influencing the sustainability of the medicine supply chain, we conducted a dynamic analysis of the problem using system dynamics methodology. In order to simulate the system's behavior over 24 months, we utilized a combination of existing documentary information and expert opinions. The developed model was implemented using Vensim PLE software, allowing us to simulate and analyze the impact of various policies on the system.

RESULTS

Medicine disposal exhibited an upward trend, particularly during the second 12-month period. Conversely, the trend of medicine expirations remained relatively stable in the initial months but showed an upward trajectory after that. The cost associated with disposed medicine experienced a consistent increase, with a higher rate observed during the second 12-month period. In contrast, sales of low-consumable medicine experienced a significant initial surge followed by a slower growth rate. Finally, the pharmacy's profit demonstrated an overall increasing trend, although the rate of increase was higher during the first 12 months.

CONCLUSION

Among the various scenarios considered, namely "increasing the adequacy of human resources," "increasing the speed of response," and "utilizing pharmacists in the drug prescribing team," it was found that these interventions had a substantial effect on both enhancing the pharmacy's profit and reducing medication waste. Therefore, these scenarios were identified as having the most significant impact. The proposed model can serve as a valuable tool for forecasting and informing policy-making, providing insights into addressing the challenges associated with the sustainable drug supply chain in hospital pharmacies.

Evaluating interaction between internal hospital supply chain performance indicators: a rough-DEMATEL-based approach

Purpose

Previous studies on hospital supply chain performance have attempted to measure the performance of the hospital supply chain either by the measurement of performance indicators or the performance of specific activities. This paper attempts to measure the internal hospital supply chain's performance indicators to find their interdependencies to understand the relationship among them and identify the key performance indicators for each of those aspects of the logistics process toward improvement.

Design/methodology/approach

In this research, a systematic assessment and analysis method under vagueness is proposed to assess, analyze and measure the internal health care performance aspects (HCPA). The proposed method combines the group Decision-Making and Trial Evaluation Laboratory (DEMATEL) method and rough set theory.

Findings

The study results indicate that the most critical aspects of hospital supply chain performance are completeness of treatment, clinical care process time and no delay in treatment.

Originality/value

The causal relationship from rough-DEMATEL can advise management officials that to improve the completeness of treatment toward patient safety, clinical care process time should be addressed initially and with it, patient safety aspects such as free from error, clinical care productivity, etc. should be improved as well. Improvement of these aspects will improve the other aspects they are related to.

Issues affecting supply of palliative medicines into community pharmacy: A qualitative study of community pharmacist and pharmaceutical wholesaler/distributor perspectives

Background

Patient access to medicines in the community at end-of-life (pertaining to the last year of life) is vital for symptom control. Supply of such medicines is known to be problematic, but despite this, studies have failed to examine the issues affecting community pharmacy access to palliative medicines.

Objective

To identify community pharmacists' and pharmaceutical wholesalers'/distributors' views on supply chain processes and challenges in providing access to medicines during the last year of life, to characterise supply in this UK context.

Methods

Qualitative design, with telephone interviews analysed using Framework Analysis. Coding frames were developed iteratively with data analysed separately and then triangulated to examine differences in perspectives.

Findings

Thirty-two interviews (24 community pharmacists and 8 wholesalers/distributors) were conducted. To ensure appropriate palliative medicines were available despite occasional shortages, community pharmacists worked tirelessly. They navigated a challenging interface with wholesalers/distributors, the Drug Tariff to ensure reimbursement, and multiple systems. IT infrastructures and logistics provided by wholesalers/distributors were often helpful to supply into community pharmacies resulting in same or next day deliveries. However, the inability of manufacturers to predict operational issues or accurately forecast demand led wholesalers/distributors to encounter shortages with manufactured stock levels, reducing timely access to medicines.

Conclusions

The study identifies for the first time how palliative medicines supply into community pharmacy, can be improved. A conceptual model was developed, illustrating how influencing factors affect responsiveness and speed of medicines access for patients. Work is required to strengthen this supply chain via effective relationship-building and information-sharing, to prevent patients facing disruptions in access to palliative medicines at end-of-life.

Mapping research on healthcare operations and supply chain management: a topic modelling-based literature review

The literature on healthcare operations and supply chain management has seen unprecedented growth over the past two decades. This paper seeks to advance the body of knowledge on this topic by utilising a topic modelling-based literature review to identify the core topics, examine their dynamic changes, and identify opportunities for further research in the area. Based on an analysis of 571 articles published until 25 January 2022, we identify numerous popular topics of research in the area, including patient waiting time, COVID-19 pandemic, Industry 4.0 technologies, sustainability, risk and resilience, climate change, circular economy, humanitarian logistics, behavioural operations, service-ecosystem, and knowledge management. We reviewed current literature around each topic and offered insights into what aspects of each topic have been studied and what are the recent developments and opportunities for more impactful future research. Doing so, this review help advance the contemporary scholarship on healthcare operations and supply chain management and offers resonant insights for researchers, research students, journal editors, and policymakers in the field.

Global Outsourcing and Local Tendering Supply Chain Systems in the Public Healthcare Sector: A Cost Comparison Analysis, Namibia

OBJECTIVES

To compare supplier prices for local tendering and global outsourcing supply chain systems that are used to purchase pharmaceutical products by the Ministry of Health in Namibia and to compare the supplier prices for both systems to the international reference buyer median prices.

METHODS

This study was quantitative in design and compared local and international supplier prices for a basket of vaccines, antiretrovirals, and anti-tuberculosis (TB) drugs from 2015 to 2020. Prices were retrieved from the procurement documents obtained from the Central Medical Stores division of the Ministry of Health, Namibia. The study also compared local and international supplier prices with the international reference buyer median prices obtained from the Management Sciences for Health International Drug Price Indicator Guide (2015 edition).

RESULTS

It was found that 77% of all the pharmaceutical products in the study were more expensive when obtained from the local suppliers than from international suppliers-that is, vaccines (70%), antiretrovirals (86.6%), and anti-TB drugs (67%). More than 50% of all the pharmaceutical products had local and international supplier prices, which were higher than the international reference buyer median prices. The price differentials were found to be higher for pharmaceutical products that were newly introduced into TB and human immunodeficiency virus treatment guidelines.

CONCLUSIONS

The study has concluded that local suppliers were costlier than international suppliers for vaccines, antiretrovirals, and anti-TB drugs. The international price comparisons have shown that there is a need for improving the pricing mechanisms in Namibia to reduce the prices of several essential medicines.

Opportunities and challenges for contactless healthcare services in the post-COVID-19 Era

This study examines the opportunities and challenges involved with contactless healthcare services in the post-COVID-19 pandemic era. First, we reviewed the literature to analyze contactless or contact-free healthcare services that have been utilized in pre-and during the COVID-19 pandemic periods. Then, we interviewed medical experts and hospital administrators to gain knowledge about how healthcare providers are currently working to mitigate the spread of COVID and preparing for the post-pandemic period. Thus, we analyzed the evolution and utilization of contactless services during the three different time periods: pre-, during-, and post-COVID-19. The results indicated that in the post-COVID-19 era, a new normal of hybrid healthcare services would emerge. While some of the contactless services that have been practiced during the pandemic may revert to the traditional face-to-face services, those innovative contactless healthcare services that have been proven effective during the pandemic would be practiced or even advanced in the post-pandemic period due to the accelerating technological developments. This study suggests many potential opportunities and daunting challenges for healthcare institutions, policymakers, and consumers regarding the implementation of contactless services in the post-COVID-19 era.

Evaluation of Medicine Reverse Logistics Practices in Hospitals

Initiatives related to reverse logistics are increasingly common in companies that produce tires, lubricating oils, batteries, and electronic equipment, among others. In the pharmaceutical sector, reverse logistics is also relevant, contributing to reduce medication exposure to other people and the environment. Thus, this research seeks to find out which practices related to reverse logistics are used in 13 hospitals in the state of Rio de Janeiro. Regarding the methodological procedures, this research is supported by interviews with those responsible for disposing of medicines from hospitals, and the best practices were ranked using the analytic hierarchy process (AHP) method. Among the main difficulties for performing Medicine Reverse Logistics practices in hospitals, the absence of a standard process for medicine disposal and medications held by nurses or satellite pharmacies—for being out of control—stand out.

2D and 3D inkjet printing of biopharmaceuticals - A review of trends and future perspectives in research and manufacturing

There is an ongoing global shift in pharmaceutical business models from small molecule drugs to biologics. This increase in complexity is in response to advancements in our diagnoses and understanding of diseases. With the more targeted approach coupled with its inherently more costly development and manufacturing, 2D and 3D printing are being explored as suitable techniques to deliver more personalised and affordable routes to drug discovery and manufacturing. In this review, we explore first the business context underlying this shift to biopharmaceuticals and provide an update on the latest work exploring discovery and pharmaceutics. We then draw on multiple disciplines to help reveal the shared challenges facing researchers and firms aiming to develop biopharmaceuticals, specifically when using the most commonly explored manufacturing routes of drop-on-demand inkjet printing and pneumatic extrusion. This includes separating out how to consider mechanical and chemical influences during manufacturing, the role of the chosen hardware and the challenges of aqueous formulation based on similar challenges being faced by the printing industry. Together, this provides a review of existing work and guidance for researchers and industry to help with the de-risking and rapid development of future biopharmaceutical products.

Analysis of issues of generic medicine supply chain using fuzzy AHP: a Pilot study of Indian public drug distribution scheme

Purpose

Integrated supply chain in pharmaceutical industry requires organized planning and modeling of each strategic element of pharmaceutical supply chain (PSC). The aim is to coordinate each activity of PSC and design a robust strategy to make the system hassle-free. Each activity of industry is interdependent and follows certain co-relations with each other. The paper focuses on the four most significant identified issues in PSC and analyses the weightages of these issues and their sub issues with respect to cost incurred and time taken to manage whole chain of supply.

Design/methodology/approach

Fuzzy analytical hierarchy process methodology has been applied to rank the issues which consume maximum time and/or costs.

Findings

The derived result shows that warehouse design and management (WDM) consumes more than one third of the total time and around half of the total cost. Other than WDM, process of supplier selection for procurement is second most time and cost consuming issue. The derived results are discussed and provided to the field experts of the area. The analysis will be useful for decision makers to economize PSC.

Research limitations/implications

The study is limited to PSC; hence, result may vary with other practical situations.

Practical implications

This generated scope for further research on how to minimize the weightage of WDM for cost and time in PSC industry so that decision-makers can optimize the economic system of PSC.

Originality/value

The research is based on the field survey of India’s largest generic medicine distributing company in the government sector; hence, analysis has been performed on real situation.

Analysis of the economic situation of the South East European pharmaceutical industry

Background: The pharmaceutical industry in the countries of Southeast Europe is still underdeveloped. Despite experience and tradition as well as significant research efforts and innovation potential, there are still big differences among the companies in the pharmaceutical sector of the SEE countries. It is for this reason that the subject of the study is the analysis of the comparative advantage in exports of the pharmaceutical sector of the SEE countries.Aim: The aim is to point out the potential of the sector and the directions of its development. The study also aims to define the position of the pharmaceutical sector in the SEE countries in today's global context. The study has comprised the pharmaceutical products belonging to group 30 in the HS6 classification and SITC 54 classification in the period 2005-2018.Conclusions: The results of the study indicate that the SEE countries have negative comparative advantage in exports, in the analysed period, except for Slovenia, which stands out with positive values of the RCA index. The products, dominating the foreign trade of the SEE pharmaceutical sector, belong to the group of Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses.

Coordination of a Dual-Channel Pharmaceutical Supply Chain Based on the Susceptible-Infected-Susceptible Epidemic Model

With the continuous development of Internet, online pharmaceutical channels in many countries have seen rapid expansion. As a result, pharmaceutical supply chain participants can adopt dual channels, namely, both online channels and offline channels. As online channels compete with traditional offline channels, it is of great relevance to study the potential conflicts and coordination between them, which is the focus of this paper. Specifically, this article develops a susceptible-infected-susceptible epidemic model of the dual channels for a pharmaceutical supply chain. Our main findings are that in a competitive situation, there is a positive stable equilibrium. Furthermore, increasing the rate of influence of offline transmission, online transmission, and cross transmission will improve sales. Moreover, improving the transmission influence rate will turn more potential customers into purchasers, increase channel sales, and achieve dual channel coordination. We then conduct numerical analysis to illustrate and complement the findings from the model. Finally, we provide managerial insights for implementing successful dual-channel pharmaceutical supply chains.

Antecedents to buyer-supplier coordination in the pharmaceutical supply chain

Purpose

The purpose of this study is to understand the antecedents that influence supply chain coordination in the pharmaceutical supply chain using the transaction cost analysis framework.

Design/methodology/approach

Data from 156 retail pharmacies on their relationship with the pharmaceutical wholesalers are used to test the hypotheses.

Findings

The findings of this paper show the importance of antecedents that are based on the transactional cost theory, such as asset specificity and environmental uncertainty. These antecedents impact the supply chain process coordination at different levels – transactional, operational and strategic.

Research limitations/implications

Future research may investigate additional antecedents using other theoretical lenses.

Practical implications

Pharmaceutical wholesalers are dependent on pharmaceutical manufacturers for the supply of products and face intense competition that results in lower profit margins. Given that the pharmaceutical industry is strictly regulated, the wholesaler facilitates regulatory compliance of the manufacturers in the distribution process by coordinating with them. But the wholesalers do also face a constant threat from the manufacturers, who could potentially bypass the wholesalers (disintermediation) and go directly to the pharmacies. To counterbalance the dependence, the wholesalers strive to achieve loyalty with the retail pharmacies. Through supply chain coordination, the wholesalers achieve efficiency in procurement for the pharmacies, thus reducing cost and improving their competitive advantage.

Social implications

Supply chain coordination in the pharmaceutical supply chain improves the safety and security of the pharmaceutical distribution system.

Originality/value

This paper contributes to the supply chain coordination stream of literature. To the best of the authors’ knowledge, this is the first study to develop the three levels of process coordination in the pharmaceutical supply chain context. This paper shows how process coordination can be achieved between the dyad without vertical integration.

Threshold behavior of optimal safety stock coverage in the presence of extended production disruptions

Purpose

The purpose of this paper is to investigate the effects of extended production disruptions because of process quality breakdowns on operational and financial performance. The investigation is conducted over the market cycle of a highly profitable product, e.g. a patented pharmaceutical. In particular, the study evaluates performance effects of different inventory level policies. The paper considers different degrees of availability of a substitute product.

Design/methodology/approach

The study uses simulation experiments based on system dynamics methodology to derive inventory policies on handling infrequently happening but severe production process breakdowns. The simulation model is inspired by empirical case study research and is based on standard modeling formulations from the literature.

Findings

The scenario analyses show that the optimal level of safety stock coverage time depends in a highly non-linear manner on various economic parameters and shows threshold behavior.

Research limitations/implications

In subsequent studies, the effect of the degree of backlogging and the effect of the repeated occurrence of quality breakdowns on the results can be investigated.

Practical implications

The critical importance of safety stock and its non-linear relationship to economic product characteristics is emphasized.

Originality/value

Motivated by a real-world case study, the paper uses standard model formulations to derive insights for a specific business situation after considering uncertainty in the environment.

A systematic literature review of healthcare supply chain and implications of future research

Purpose

This paper aims to review the healthcare supply chain (HSC) literature along various areas and to find out the gap in it.

Design/methodology/approach

In total, 143 research papers were reviewed during 1996-2017. A critical review was carried out in various dimensions such as research methodologies/data collection method (empirical, case study and literature review) and inquiry mode of research methodology (qualitative, quantitative and mixed), country-specific, targeted area, research aim and year of publication.

Findings

Supply chain (SC) operations, performance measurement, inventory management, lean and agile operation, and use of information technology were well studied and analyzed, however, employee and customer training, tracking and visibility of medicines, cold chain management, human resource practices, risk management and waste management are felt to be important areas but not much attention were made in this direction.

Research limitations/implications

Mainly drug and vaccine SC were considered in current study of HSC while SC along healthcare equipment and machine, hospitality and drug manufacturing related papers were excluded in this study.

Practical implications

This literature review has recognized and analyzed various issues relevant to HSC and shows the direction for future research to develop an efficient and effective HSC.

Originality/value

The insight of various aspects of HSC was explored in general for better and deeper understanding of it for designing of an efficient and competent HSC. The outcomes of the study may form a basis to decide direction of future research.

Raut R, Narkhede BE. Analysing the 3PL service provider’s evaluation criteria through a sustainable approach

Purpose

The purpose of this paper is to identify and model the evaluation criteria for the selection of third-party logistics service provider (3PLSP) by an interpretive structural modelling (ISM) approach in the pharmaceutical sector.

Design/methodology/approach

Delphi technique was used for identifying the most significant criteria, and the ISM method was employed for developing the interrelationship among the criteria. Also, the critical criteria for having high influential power were identified by using the Matrice d’Impacts Croisés Multiplication Appliqués à un Classement analysis.

Findings

The most significant factors, namely, capability of robust supply network/distribution network, quality certification and health safety, service quality and environmental quality certifications, were found to have a high driving power, and these factors demand the maximum attention of the decision makers.

Research limitations/implications

As the ISM approach is a qualitative tool, the expert opinions were used for developing the structural model, and the judgments of the experts could be biased influencing the reliability of the model. The developed hierarchical concept is proposed to help the executives, decision and policy makers in formulating the strategies and the evaluation of sustainable 3PLSP.

Originality/value

It is an original research highlighting the association between the sustainable 3PLSP evaluation criteria by employing ISM tool in the pharmaceutical industry. This paper will guide the managers in understanding the importance of the evaluation criteria for the efficient selection of 3PLSP.

Critical Success Factors of a Drug Traceability System for Creating Value in a Pharmaceutical Supply Chain (PSC)

The general objective of this study was to identify and prioritize the critical success factors required for the adoption of a system to create value for pharmaceutical supply chain stakeholders, and the pharmaceutical supply network as a whole, by using a multi-perspective framework that combines elements of the technology-organization-environment (TOE) contexts for enterprises. The methodology is based on a literature review and expert interviews following the analytic hierarchy process (AHP). This paper identifies and prioritizes 18 critical success factors from three categories: technological, organizational, and environmental. From a practical point of view, this research contributes to the literature by providing expert insight on the topic of drug traceability, especially in terms of how possible values can be captured by companies.

Reverse Logistics of Postconsumer Medicines: The Roles and Knowledge of Pharmacists in the Municipality of São Paulo, Brazil

Environmental contamination due to the disposal of expired or obsolete drugs is a concern, since there is no specific Brazilian legislation, regarding disposal by the final consumer, thus reflecting the need for reverse logistics of medicines, after their consumption. The objective of this study was to survey the knowledge of pharmacists regarding their role in the reverse logistics of medicines and to understand the contribution of reverse logistics, aimed at the appropriate disposal of Group B waste, on a voluntary basis, by the population, in the municipality of São Paulo. A survey conducted through interviews with a hundred and sixty-one pharmacists demonstrated that 35% have partial knowledge of the postconsumer reverse logistics of their place of work and 16.8% have complete knowledge of the environmental harm resulting from the contamination of medicinal waste. The pharmacists also reported (10%) that there should be an educational plan for clients, and 50% of them agreed that incentives and disclosure, regarding the importance of reverse logistics for medicines, should be provided to consumers.

Cold-Chain Systems in China and Value-Chain Analysis

Cold supply chains or cold-chain systems are emerging rapidly in China. This chapter presents an overview of cold-chain systems in China, including those in fresh agricultural products, frozen processed products, and biopharmaceutical products. The rapid growth of the cold-chain supply systems emphasizes the need to establish integrated systems. We attempt to explain the integration of cold supply chains in China. This chapter is based on case studies of cold-chain companies in China within the framework of value-chain analysis. Recent integrations of cold-chain suppliers in China are reviewed along with the rationales behind the integration in terms of value creation. The findings will be of use for cold-chain practitioners and policy-makers to understand the observed behaviors of cold-chain systems. Practitioners will also be able to use the findings to guide supply chain integration decisions. This study will guide policy-makers and other stakeholders to manage the sustainable development of cold-chain systems.

Planning the location of facilities to implement a reverse logistic system of post-consumer packaging using a location mathematical model

The implementation of reverse logistics systems (RLS) for post-consumer products provides environmental and economic benefits, since it increases recycling potential. However, RLS implantation and consolidation still face problems. The main shortcomings are the high costs and the low expectation of broad implementation worldwide. This paper presents two mathematical models to decide the number and the location of screening centers (SCs) and valorization centers (VCs) to implement reverse logistics of post-consumer packages, defining the optimum territorial arrangements (OTAs), allowing the inclusion of small and medium size municipalities. The paper aims to fill a gap in the literature on RLS location facilities that not only aim at revenue optimization, but also the participation of the population, the involvement of pickers and the service universalization. The results showed that implementation of VCs can lead to revenue/cost ratio higher than 100%. The results of this study can supply companies and government agencies with a global view on the parameters that influence RLS sustainability and help them make decisions about the location of these facilities and the best reverse flows with the social inclusion of pickers and serving the population of small and medium-sized municipalities.

The effect of trust with suppliers on hospital supply chain performance

Purpose

The purpose of this paper is to investigate the effect of trust with suppliers on hospital-supplier integration (SI) and hospital supply chain (SC) performance. Additionally, the mediating effect of SI on trust-hospital SC performance is investigated.

Design/methodology/approach

A research model and hypotheses were developed based on literature review. The study is based on survey data collected from 152 respondents in 55 private hospitals in Jordan. The proposed hypotheses were tested using structural equation modeling.

Findings

The paper finds that trust with suppliers has a positive impact on hospital-SI and hospital SC performance. Hospital-SI partially mediates the relationship between trust and hospital SC performance.

Practical implications

The findings of this research provide useful insights into the role of trust in boosting SC performance in the healthcare sector. High levels of SI not only improve hospital SC performance but also enhance the transformation of trust benefits into SC performance.

Originality/value

This research is one of the limited studies that investigated the effect of trust on hospital-SI and hospital SC performance in the healthcare sector. To the best of the authors’ knowledge, this is the first study to investigate those relationships in the Middle East in general and in Jordan in particular.

Optimization of healthcare supply chain in context of macro-ergonomics factors by a unique mathematical programming approach

This study presents an integrated approach for analyzing the impact of macro-ergonomics factors in healthcare supply chain (HCSC) by data envelopment analysis (DEA). The case of this study is the supply chain (SC) of a real hospital. Thus, healthcare standards and macro-ergonomics factors are considered to be modeled by the mathematical programming approach. Over 28 subsidiary SC divisions with parallel missions and objectives are evaluated by analyzing inputs and outputs through DEA. Each division in this HCSC is considered as decision making unit (DMU). This approach can analyze the impact of macro-ergonomics factors on supply chain management (SCM) in healthcare sector. Also, this method ranks the relevant performance efficiencies of each HCSC. In this study by using proposed method, the most effective macro-ergonomics factor on HCSC is identified as "teamwork" issue. Also, this study would help managers to identify the areas of weaknesses in their SCM system and set improvement target plan for the related SCM system in healthcare industry. To the best of our knowledge, this is the first study for macro-ergonomics optimization of HCSC.

A novel approach for inventory problem in the pharmaceutical supply chain

BACKGROUND

In pharmaceutical enterprises, keeping up with global market conditions is possible with properly selected supply chain management policies. Generally; demand-driven classical supply chain model is used in the pharmaceutical industry. In this study, a new mathematical model is developed to solve an inventory problem in the pharmaceutical supply chain.

METHOD

Unlike the studies in literature, the "shelf life and product transition times" constraints are considered, simultaneously, first time in the pharmaceutical production inventory problem. The problem is formulated as a mixed-integer linear programming (MILP) model with a hybrid time representation. The objective is to maximize total net profit. Effectiveness of the proposed model is illustrated considering a classical and a vendor managed inventory (VMI) supply chain on an experimental study.

RESULTS

To show the effectiveness of the model, an experimental study is performed; which contains 2 different supply chain policy (Classical and VMI), 24 and 30 months planning horizon, 10 and 15 different cephalosporin products. Finally the mathematical model is compared to another model in literature and the results show that proposed model is superior.

CONCLUSION

This study suggest a novel approach for solving pharmaceutical inventory problem. The developed model is maximizing total net profit while determining optimal production plan under shelf life and product transition constraints in the pharmaceutical industry. And we believe that the proposed model is much more closed to real life unlike the other studies in literature.

Supply chain and total quality management framework design for business performance-case study evidence

Purpose

– The purpose of this paper is to identify the importance of integration of supply chain management practices with total quality management (TQM) practices to augment business performance. The objective of paper is to focus on the two important dimensions, namely, supply chain and TQM of an organization with special reference to the concepts: exploration and exploitation.

Design/methodology/approach

– In total, 20 variables have been identified (independent variables) which impact business performance (dependent variable). Variables have been extracted into four categories with a combination of two orientations, i.e., exploitation and exploration, with respect to quality management and supply chain practices.

Findings

– Configurationally four different combinations concerning supply chain and TQM were identified in which an enterprise can operate. This is supported with the four different case studies.

Practical implications

– This study leads to some interesting practical implications for practicing managers as it offers a framework in which the supply chain and TQM practices can be implemented with respect to an organizational structure (mechanistic or organic structure), environmental conditions (uncertain environment and rapidly changing product life cycle) and identification of customer orientations (whether customer is price sensitive or customer makes buying decision on account of trust or relation to the product).

Originality/value

– The concept of supply chain exploitation and supply chain exploration with different orientations of quality management is not studied comprehensively before. This paper provides a background for establishing a framework of strategies for supply chain and quality practices, with respect to the exploitation and exploration scenario.