An Optimization Model for Managing the Drug Logistics Process in a Public Hospital Supply Chain Integrating Physical and Economic Flows

Abstract

The drug purchasing and distribution system is one of the most critical activities within a Hospital Supply Chain (HSC) mainly due to the high costs involved and the required strict medical-administrative controls. An appropriate decision-making process is therefore essential to maximize the performance of the system, guaranteeing a solution that respects medical and administrative restrictions. This paper develops a novel multiperiod approach that provides an alternative framework to determine managerial strategies, integrating financial aspects with logistic decisions in a public HSC. The problem is formulated as a mixed-integer linear programming (MILP) model addressing the lack of certainty in the data through fuzzy constraints and considering two conflicting objectives: the total cost and the total product shortage. To deal with the multicriteria optimization, the original model is further converted into a fuzzy mixed-integer goal programming (FMIGP) one, that allows inclusion of imprecise aspiration levels for each goal, and its equivalent crisp form permits finding an efficient compromise solution of the problem. An Argentinian public HSC is used to illustrate the proposed approach.