An engineering approach to improving hospital supply chains

This thesis explores supply chain management practices that have been implemented, and have improved supply chains in industries outside of healthcare. The presented supply chain practices have been selected because they have the potential to improve efficiency, reduce costs and improve patient safety within hospitals. Due to the diverse nature of hospitals and a unique product profile, there is no "one size fits all" supply chain solution that can be implemented. Therefore, product specific characteristics are discussed that can be used by hospitals in order to develop segmentation policies. Supply chain best practices from outside of the healthcare industry are presented for each category of segmented products. The culmination of this thesis is the presentation of a supply chain that will enable the hospital to significantly reduce inventory storage space, on hand inventory value, and time spent by nurses managing inventory. The proposed supply chain model is patient specific and involves the delivery of items from an offsite warehouse directly to the patient's bedside. In order to successfully implement a new supply chain solution in a hospital setting, change management is a critical part of the process. Methods are presented that have resulted in successful implementations of complex systems within hospitals. Three areas must be considered when managing change in this type of setting, the healthcare environment, the hospital's internal management and operational aspects of the hospital supply chain. Using simulation models, we show that implementation of the proposed supply chain for appropriately segmented products will result in significant supply chain cost savings and boost the revenue.

Department dc:contributor.department

Massachusetts Institute of Technology. Engineering Systems Division.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2008

Authors dc:creator

• Cheng, Scott Hsiang-Jen
• Whittemore, Graham J

Advisor dc:contributor.advisor

• Mahender Singh.

• Engineering Systems Division.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/44928

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/44928