Improving hospital material supply chain performance by integrating decision problems: A literature review and future research directions

Abstract

Logistics costs are the second largest cost for hospitals, so effectively managing the hospital material supply chain provides significant opportunities for improvement. In order to optimise supply chain performance, strategic, tactical and operational decisions (e.g. location, inventory, routing) of the different echelons should be made in an integrated way. Large efficiency improvements and cost reductions are possible through the application of holistic supply chain management, while at the same time maintaining a high quality of care. In addition, real-life features that distinguish the hospital supply chain from other contexts should be included in the decision-making process (e.g. patient safety, perishability, stochasticity). In this paper, an extensive literature review on integrated decision making in hospital supply chains is conducted. The focus is on quantitative research papers dealing with the integration and optimisation of two or more hospital material supply chain decisions as a way to improve operational performance and reduce logistics costs. This paper is the first to provide a comprehensive and structured overview of the existing literature on integrated decision making within the entire hospital supply chain. Existing literature is classified based on both general and reallife problem characteristics that distinguish the healthcare setting from other industries. The insights can direct and facilitate future research on this topic, enhance the applicability of existing supply chain management techniques to a real-life hospital supply chain and, consequently, improve hospital supply chain performance.