Medical supplies lot-sizing with supplier selection in Thailand healthcare supply chain sector

Abstract

The purpose of this paper is to address lot sizing problems assessed with supplier selection for procurement planning in hospital inventories, with specific attention to medical supplies. This situation is considered multi-product, multi-supplier and multi-discount, in particular for fulfilling hospital (medical staff) demands where conditions of space capacity and budget are limited. A mathematical model is presented for a multi-objective, mixed integer nonlinear program using MATLAB and Lingo to create a generic algorithm that proposes to minimise total costs and maximise quality and commercial service by purchasing period. The mathematical model proposed was tested in a hospital and was successfully applied to provide a solution for lot-sizing supplier selection problems in procurement. This model is validated by sensitivity analysis.