Scientific Essay from the year 2013 in the subject Business economics - Supply, Production, Logistics, grade: 1,0, San Diego State University, course: Global Supply Chain Management, language: English, abstract: The healthcare system of the U.S. is increasingly challenged by prescription drug shortages. But what are the root causes for this problem and how can these shortages be mitigated? Which role plays effective supply chain management in that setting? This paper addresses these questions and discusses possible approaches to strengthen the pharmaceutical supply chain in the U.S.
This book provides an insight of relevant case studies and updated practices in “PharmaceuticalSupply Chains” (PharmSC) while addressing the most relevant topics within the COST Action “Medicines Shortages” (CA15105).The volume focuses on the most recent developments in the design, planning and scheduling ofPharmSC, broadening from the suppliers’ selection to the impact on patients and healthcaresystems, addressing uncertainty and risk mitigation, and computational issues. It is directed at MSc/PhD students and young researchers (Post-Docs) in Pharmaceutics/Pharmaceutical sciences, Engineering fields, Economics/Management, as well as pharmaceutical decision makers, managers, and practitioners, and advanced readers demanding a fresh approach to decision making for PharmSC. The contributed chapters are associated with the homonymous COST Training Schools (TS), and the book creates a better understanding of the Action “Medicines Shortages” challenges and opportunities.
This book provides an insight of relevant case studies and updated practices in "Pharmaceutical Supply Chains" (PharmSC) while addressing the most relevant topics within the COST Action "Medicines Shortages" (CA15105). The volume focuses on the most recent developments in the design, planning and scheduling of PharmSC, broadening from the suppliers' selection to the impact on patients and healthcare systems, addressing uncertainty and risk mitigation, and computational issues. It is directed at MSc/PhD students and young researchers (Post-Docs) in Pharmaceutics/Pharmaceutical sciences, Engineering fields, Economics/Management, as well as pharmaceutical decision makers, managers, and practitioners, and advanced readers demanding a fresh approach to decision making for PharmSC. The contributed chapters are associated with the homonymous COST Training Schools (TS), and the book creates a better understanding of the Action "Medicines Shortages" challenges and opportunities.
“Supply Chain Risk Management is an issue that many companies face and yet few companies know how to deal with it in a systematic and pragmatic manner. While avoiding and reducing supply chain risks are certainly preferable, developing ways to restore and stabilize supply chain operations rapidly after a major disruption is critical for managing global supply chains. Sodhi and Tang present important concepts, frameworks, strategies, and analyses that are essential for managing supply chain risks. Not only does this book suggest some practical ways to work with different partners to manage the risks that are present in a global supply chain, it creates a framework that would enable practitioners to engage researchers to work on this important area.” —Thomas A. Debrowski, Executive Vice President, Worldwide Operations, Mattel, Inc. “When a firm outsources its operations to external suppliers, the firm is vulnerable to major and rare disruptions that can occur at any link in the global supply chain. Because these disruptions rarely occur, few firms take commensurable actions to identify, assess, mitigate and respond to various types of supply chain risks. By introducing frameworks and concepts along with several case studies and a review of academic literature, Sodhi and Tang treat this important subject with practical relevance and academic rigor. This book will bring practitioners and researchers to develop effective and efficient ways to manage supply chain risks.” —Marshall L. Fisher, UPS Professor, Professor of Operations and Information Management and Co-Director of Fishman-Davidson Center for Service and Operations Management, The Wharton School, University of Pennsylvania “This book ties observations in practice to methodologies and research. The rich case examples motivated the approaches and methodologies used to mitigate risks, and in the course of doing so, Sodhi and Tang provided insights on existing and new research opportunities. As a result, this book is highly relevant to both practitioners and academics. Also, the book is also written with management lessons on how risks can be mitigated, and how risks can be contained once disruptions have occurred. As such, it is also a book for management to gain insights and to develop management skills.” —Hau L. Lee, Thoma Professor of Operations, Information and Technology and Director of the Stanford Global Supply Chain Management Forum, Graduate School of Business, Stanford University “As companies have extended their supply chains globally and as the face increasing resource issues, they face a number of new risk challenges. While there are various case studies written about supply chain risks, this book gives a comprehensive treatment of the subject with clarity. The concepts and frameworks developed by Sodhi and Tang in this book would create awareness of this important and yet not well understood subject, and strategies described in this book would stimulate practitioners to develop a holistic approach for identifying, assessing, mitigating, and responding to different types of supply chain risks.” —Nick Wildgoose, Global Supply Chain Proposition Manager, Zurich Insurance
Why does management science help organizations to avoid/solve resource shortage?Because management is a core function of every business and a number of theories try to explain how any why resource will be use rapidly and resource shortage causes to any organization. The core function of the management science approach is to compare possible outcomes. In addition, managers in various functions have aware of the potential contribution of analytical modes . So, the managerical science function involves arranging equipment perform functions, such as procurement, production etc. activities.For drug manufacturing organization or hospital, clinic, medical service organizations exmaple, any kinds of drug must be important resource to provide patients to eat. If they have not enough drugs to be provided to the hospital, clinic, medical service organizational patients to eat. Then, their sicknesses may become serious suddenly. So, managing enough drugs stick is very important. However, management science may help any one these medical organization to implement rationality in strategic decisions: Choice which kinds of drugs purchase number, in order to keep enough drugs supply in drug store room. Understanding in a drug resource pool choice, due to cash available is limited to any one medical organizations. Management science aims to avoid drug shortage to any one medical organizations. Such as this drug organization case, management science may help them to identify the processes, which kinds of drugs are needed to buy immediately, notice the areas of weaknesses, and realize the future possibilities and needs of the medical organization's patient customers needs. The approach makes the drug utilization of resources easier, since the framework can notice the availability of drug resources and the proper eat of them to be provided to any sickness kinds of patients to eat immediately when the medical organization can have enough drug stocks supply.How to apply management science to help hospital better prepare for a drug shortage management method may include: Having a plan, the director of pharmacy should consider developing a plan for managing drug shortages, implement structured communications. Ask the right questions, instead of, hospital management also needs to know what is causing drug shortages. IN fact, drug shortages are caused by many factors, including: regulatory issues, and business decisions as well as many other disturbances within the supply chain.Hence, in management science view point, hospital can attempt to apply mobile App technolgies tool to solve drug shortage problem, because mobile App technologies tool can be one kind of immediate communication tool, it can identify when the kind of drug will shortage and their impact on hospitals, e.g. how many the kind of sickness patient number and automates the entire life cycle of managing any kinds of drug shortage. Mobile App, communication technologic tool can provide clinical information that allows teams to understand and mitigate the ramifications for shorted medications. Any possible drug shortage solution in hoepital, it may be a management strategy that includes clear policies and producers for information. It defines a drug shortage is as a supply issue that affects how the drug store room's daily drug supplies.Thus, management science may help any medical organizations to solve drug shortage crisis, it may help any organizations to attempt to reduce health care cost, one common solution for mitigating shortages is to keep more drug inventory, but drug inventory number can not be excess, in order to avoid drug out of patients ( old drug) to let patients to eat in difficult. Hence, any medical organizations need to implement good pharmaceutical supply chain management strategy in order to solve drug resolve shortage challenge causes.
Abstract: Drug shortage is a worldwide problem, which gained the attention of many authorities in recent years including the Egyptian government. The problem has markedly increased in Egypt during the past few years and has had a significant negative impact on patient care with subsequent costly financial implications. Despite the importance of the drug shortage problem and its consequences on the health of Egyptians and society as a whole, only a few researchers have addressed the topic in Egypt. This qualitative study aims at filling the gap and providing a better understanding of the problem in the Egyptian context. To achieve the study objective, the root causes of the problem and the actions taken by the government to mitigate the problem are explored. In-depth, semi-structured interviews are carried out with different stakeholders including from government, industry, distributors, and pharmacies. The findings of this research revealed that the drug shortage is attributed to a myriad of interlinked causes. The most critical causes of drug shortages are as follows: the drug pricing constraints, the devaluation, economic changes, overdependence on the importation of production inputs, illegal distribution practices, excessive bureaucracy and complicated procedures, manufacturing problems, poor supply chain management, and scarcity of raw materials. The findings also show that although the government has exerted many efforts to tackle drug shortages, there is still a gap to be addressed. Based on experiences of other countries and according to the Egyptian context, solutions are proposed to help in mitigating drug shortages in Egypt which include enhancing the sustainability of the production of medicines by improving companies’ profitability, improving collaboration between various stakeholders, developing a system for reporting and communication of drug shortage information, and modifying workflow within MoHP to avoid unnecessary delays.
This report offers insights into the risks and vulnerabilities of the supply chains of medicines and medical devices. Policy options to anticipate and mitigate risks of shortages of medicines and medical devices, both routinely and in the context of severe crises, are analysed. Most importantly, the report shows that strengthening the long-term resilience of medical supply chains requires collaborative approaches that balance measures best undertaken by the private sector with those more appropriately managed by governments or supranationally.
Resilient supply chains are crucial to maintaining the consistent delivery of goods and services to the American people. The modern economy has made supply chains more interconnected than ever, while also expanding both their range and fragility. In the third quarter of 2017, Hurricanes Harvey, Irma and Maria revealed some significant vulnerabilities in the national and regional supply chains of Texas, Florida, the U.S. Virgin Islands, and Puerto Rico. The broad impacts and quick succession of these three hurricanes also shed light on the effectiveness of the nation's disaster logistics efforts during response through recovery. Drawing on lessons learned during the 2017 hurricanes, this report explores future strategies to improve supply chain management in disaster situations. This report makes recommendations to strengthen the roles of continuity planning, partnerships between civic leaders with small businesses, and infrastructure investment to ensure that essential supply chains will remain operational in the next major disaster. Focusing on the supply chains food, fuel, water, pharmaceutical, and medical supplies, the recommendations of this report will assist the Federal Emergency Management Agency as well as state and local officials, private sector decision makers, civic leaders, and others who can help ensure that supply chains remain robust and resilient in the face of natural disasters.
Drug shortages have been an ongoing problem in many developed countries well before the COVID-19 global pandemic. The literature suggests many reasons for these shortages. We analyze the drug supply chain (DSC) under a deterministic demand scenario, and then under a random demand scenario using a simulation model. The supply chain consists of a manufacturer, distributor, and healthcare providers. Each entity in the DSC makes its decisions based on observed practices. In the deterministic model, we find that the lack of transparency across the trading partners and the common practice of large production lot sizes of the manufacturer cause the supply chain to experience frequent shortages. These shortages are more severe for low margin generic drugs, resulting in diminished patient care, poorer health outcomes, and patient safety concerns. We suggest three remedies for the manufacturer to address drug shortages, wholesale price reduction, holding cost sharing, and time-based cycle time discounts. We demonstrate the effectiveness of the three remedies and identify the conditions under which each works best. We verify the results under random demand using a simulation and show that the proposed remedies are effective. The only difference is that under random demand it is optimal to have small shortages.
Technology plays an increasingly critical role in various supply chains by endowing products with sought-after capabilities. For these supply chains to perform, both the creation and the reliable supply of technology are necessary. The current dissertation consists of three essays related to this theme. In the first essay the focus is on a supply chain where there is an innovation opportunity in the upstream supplier. We investigate when the supplier should ask the downstream manufacturer to invest in the supplier's innovation in return for the procurement contract initiation right. Interestingly, the supplier's strategy is contingent on the nature of the innovation such as quality improvement and cost reduction. In the second essay, we study business models for the technology provider that can not only license its proprietary technology but also produce the technology embedded subsystem. A widely used royalty-driven approach has gotten complicated in multi-tier supply chains because there are multiple royalty bases. We characterize the appropriateness of different business models for markets with varying levels of customer diversity and competitive intensity in the supply chain. In the third essay, the focus is on when a technology supply chain is more reliable. We investigate this question in pharmaceutical drug supply chain, where drug shortages frequently occur due to manufacturing issues. Using the drug shortage history data between 2010 and 2015, we found that increasing competition may not monotonically mitigate or prolong the drug shortage recovery time contrary to common theory predictions. We develop a model and provide a new theory that can plausibly explain the empirical observations.
