Collaborative logistics networks in healthcare

Abstract

Healthcare institutions face rising financial pressure. Logistics is a key cost driver, highlighting the need to rethink healthcare system organization. This study presents a Healthcare-specific Location-Inventory Problem to design efficient care hub networks by jointly optimizing locations and inventory. A key aspect is product standardization, aligning diverse preferred products into a standardized product. Consolidating institutions' inventories into care hubs reduces costs, with further savings from standardization. Sensitivity analyses show how parameter changes affect costs and design.