A medical device distribution network design strategic planning process and optimisation model

Renato de Matta, Tan Miller and Emmanuel Peters

International Journal of Data Analysis Techniques and Strategies, 2024, vol. 16, issue 2, 126-161

Abstract: In this research study, we propose a strategic network design planning approach for the medical device industry that utilises a profit maximising optimisation model, innovative data pre-processing methods, and product pricing sensitivity analyses. This process provides decision support for planning the design of flexible, responsive physical networks, and for improving inventory deployment practices. This strategic planning approach poses a series of distribution strategy scenarios, each evaluated by our mathematical optimisation model. The modeling methodology includes data pre-processing steps that facilitate the incorporation of critical customer service order cycle delivery requirements and transportation mode choice selections, as well as product returns and product refurbishment processes specific to the medical device industry. We also demonstrate how the incorporation of product pricing sensitivity analysis into our planning process facilitates the coordination of distribution network design strategy with sales and marketing strategic pricing decisions. We present a case study with numerical results.

Keywords: manufacturing and distribution planning; strategic network planning; medical device network design; medical device industry; optimisation modelling; data pre-processing procedures for optimisation. (search for similar items in EconPapers)
Date: 2024
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