An optimization-based methodology equipped with lean tools to strengthen medical supply chain resilience during a pandemic: A case study from Turkey

Ömer Faruk Yılmaz, Fatma Betül Yeni, Beren Gürsoy Yılmaz and Gökhan Özçelik

Transportation Research Part E: Logistics and Transportation Review, 2023, vol. 173, issue C

Abstract: Drawing upon economic and environmental sustainability, this study explores how developing the operational resilience of the medical supply chain (MSC) contributes to maintaining healthcare in the face of disruption risks, such as the COVID-19 pandemic. To this end, an optimization-based roadmap is proposed by employing lean tools to achieve and realize MSC resilience. A novel two-stage stochastic optimization model and robust counterpart are developed with the objective of overall cost minimization to cope with the unknowable demand uncertainty represented by scenarios. The reason behind proposing a scenario-based stochastic model is to implement preparedness strategies during the (re)design phase by making strategic and operational level decisions. That being the case, seven cases are generated based on the demand uncertainty intervals along with seven different reliability levels for sensitivity analysis. Computational experiments are conducted through a real case study to compare the centralized and decentralized distribution models in terms of efficiency and responsiveness. The results obtained by the stochastic model and robust counterpart are compared to demonstrate how strong the proposed model is. On top of that, lean tools are used to visualize and analyze the improvement opportunities to contribute to the methodology. By doing so, this paper presents novel theoretical and empirical insights regarding MSC resilience. The computational results emphasize the importance of employing a pre-disruption strategy via the proposed methodology to design a resilient MSC to be prepared for pandemic-related risk. The findings from the sensitivity analysis also verify that regardless of the disruption degree, the developed roadmap with the centralized distribution model leads to up to 40% improvements in terms of the overall cost, order lead time, emission amount, and inventory shortage metrics.

Keywords: Medical supply chain resilience; Unknowable uncertainty; Lean management; COVID-19 pandemic; Two-stage stochastic optimization (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (3)

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DOI: 10.1016/j.tre.2023.103089

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