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ERIC Number: ED551025
Record Type: Non-Journal
Publication Date: 2012
Pages: 164
Abstractor: As Provided
Reference Count: N/A
ISBN: 978-1-2677-1999-7
Essays on the Effect of Radio Frequency Identification (RFID) on the Management of Healthcare Supply Chain Performance
Cakici, Ozden Engin
ProQuest LLC, Ph.D. Dissertation, University of Rochester
This dissertation examines three issues on the effect of Radio Frequency Identification (RFID) on the management of healthcare supply chain performance within the context of inventory management. Motivated by a case study conducted in a radiology practice, the second chapter analyzes the incremental benefits of RFID over barcodes for managing pharmaceutical inventories using a normal approximation for the demand process. Unlike barcode, RFID enables accurate real-time visibility, automatic counting and reduces shrinkage. I show that continuous review is superior to periodic review whenever accurate real-time information is available at no additional cost. I explain how RFID-enabled strategies vary with inventory parameters and provide a cost-benefit analysis for the implementation of RFID for the radiology practice. The third and fourth chapters assume that demand follows a Levy process (e.g., gamma or compound Poisson process). The third chapter analyzes a ("Q,R,S") inventory policy that combines periodic and continuous review in a single model. The policy includes a number of common policies as special cases. Hence, different periodic and continuous review policies can be compared accurately. This helps choosing the best review policy for a given inventory tracking technology. I fully characterize convexity and modularity properties of the inventory-related cost. I also investigate the order frequency function and compare the periodic review base stock and order point-order quantity policies. The fourth chapter analyzes "order-loss." In hospitals, replenishment orders for pharmaceuticals must go through multiple departments for verification, authentication, safety checking, etc., before submitted to a supplier. Consequently, the order information may be inadvertently lost on the way, leading to order-loss. I show that order-loss, even when rare, can lead to exceedingly high inventory costs. I first prove that the optimal ordering policy is a periodic ("s,S") policy within periodic review policies. But a simpler policy is easier to manage by the hospital personnel (e.g., nurses), so I analyze a periodic review base stock ("R,S") policy. I characterize the convexity and modularity properties of the inventory cost function. I also analyze the impact of order-loss on the optimal base stock level, order quantity and review period. Lastly, I estimate the value of RFID technology for eliminating order-loss. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page:]
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Publication Type: Dissertations/Theses - Doctoral Dissertations
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A