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International Conference on Computational Logistics

ICCL 2018: Computational Logistics pp 461–474Cite as

Application of MILP to Strategic Sourcing of High-Cost Medical Devices and Supplies

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Part of the book series: Lecture Notes in Computer Science ((LNTCS,volume 11184))

Abstract

We discuss the application of a mixed integer linear programming (MILP) model to assist in the development of procurement strategies for high-cost medical devices and supplies in one of the largest nonprofit health-care organization in the USA. The MILP model seeks to reduce the costs of providing necessary supplies by qualifying the organization for price discounts through volume purchasing commitments, while maintaining diversity in the supply base, adhering to physicians’ preferences for specific products, and considering ratings given to suppliers on several dimensions on vendor scorecards. With results from multiple optimization scenarios, tradeoffs among procurement costs, requirements for diversity in the supply base, and flexibility of physicians in allowing substitute devices are explored in depth. Also revealed are potential consequences of stipulating formal vendor scorecard requirements when negotiating future contracts.

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Author information

Authors and Affiliations

  1. University of Missouri-St. Louis, One University Boulevard, St. Louis, MO, 63121, USA

    Parimal Kulkarni & L. Douglas Smith

  2. BJC Healthcare, 4901 Forest Park Avenue, St. Louis, MO, 63108, USA

    Parimal Kulkarni

Authors
  1. Parimal Kulkarni
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  2. L. Douglas Smith
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Corresponding author

Correspondence to L. Douglas Smith .

Editor information

Editors and Affiliations

  1. University of Salerno, Fisciano, Italy

    Raffaele Cerulli

  2. University of Salerno, Fisciano, Italy

    Andrea Raiconi

  3. Institute of Information Systems, University of Hamburg, Hamburg, Germany

    Stefan Voß

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Kulkarni, P., Smith, L.D. (2018). Application of MILP to Strategic Sourcing of High-Cost Medical Devices and Supplies. In: Cerulli, R., Raiconi, A., Voß, S. (eds) Computational Logistics. ICCL 2018. Lecture Notes in Computer Science(), vol 11184. Springer, Cham. https://doi.org/10.1007/978-3-030-00898-7_31

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  • DOI: https://doi.org/10.1007/978-3-030-00898-7_31

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-00897-0

  • Online ISBN: 978-3-030-00898-7

  • eBook Packages: Computer ScienceComputer Science (R0)

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