Modelling logistics cost in hospital: A case of medical products

Abstract

Healthcare providers currently operate in an environment of multifaceted supply chains. The increasing costs due to lack of attention to real costs has made implementing a costing system difficult. The fundamental issues for healthcare management today should take into consideration the manufacturing cost and non-manufacturing cost which is related to logistics activity. Based on these pressures, the purpose of this study is initially conducted to identify influencing factors implementation of Activity base costing (ABC) and Time driven activity base costing (TDABC) methods. These include activity, determine resource use, estimate time processing in each activity and then calculate the unit cost of services provided in a healthcare center. The corresponding basic mathematical formulas and design of the information flow system are also elaborated. The result of this study shows that most of the top concerns of effective in reducing logistics cost; improved quality and efficiency of the medical products care transport which they provide to Patients service.