AN INVENTORY MODEL FOR DETERIORATING PHARMACEUTICAL ITEMS WITH TIME DEPENDENT DEMAND UNDER COMPLETE BACKLOGGING

Abstract

A high level of service for medical supplies and effective inventory policies are essential objectives for all health care industries. Medicine shortages and improper use of pharmaceuticals can not only lead to financial losses but also have a significant impact on patients. Many health systems and hospitals experience difficulties in achieving these goals as they have not addressed how medicines are managed, supplied, and used to save lives and improve health. Studies are essential to understand operations in health care industries and to offer decision support tools that improve health policy, public health, patient safety, and strategic decision-making in the pharmaceutical inventory model. We present a deterministic inventory model for pharmaceutical items having time dependent quadratic demand under the effect of deterioration. We develop a procedure for determining optimal solutions for inventory and the number of deliveries to achieve hospital (Customer Service Level) CSL targets with a minimum total cost of the system. The necessary and sufficient conditions for the existence and uniqueness of the optimal solution which could minimize the average total cost per unit time has been discussed. A numerical example illustrates the model application and behavior using MATLAB. 512 R. UTHAYAKUMAR AND S. THARANI AMS Subject Classification: 97M60