Abstract
Physician preference items or PPIs are medical items recommended by physicians for use in medical procedures and other treatments. The recommendation of PPIs by individual physicians can cause the variety of item types that need to be managed within a health care supply chain to increase over time. To better manage the PPI selection process, healthcare organizations often select items through value analysis and discussion teams, which are highly subjective. To better control PPIs, this work uses multiple-objective decision analysis (MODA) to develop a structured quantitative framework for the PPI selection process. The established decision-making framework is based on the theory of multi-objective value analysis. It offers a structured and educated guide to decision-makers for improving value analysis outcomes, advocating sustainable healthcare management strategies. The model was tested and validated through two case studies on two different items in two hospitals in Jordan.
Highlights
An effective and efficient selection of medical items and supplies can lead to the better management of inventory within a healthcare organization’s supply chain and, a more sustainable system, as well as a reduced total cost
The focus of this research is on functionally equivalent items that are introduced by competitors
stock-keeping unit (SKU) proliferation can be defined as increasing the variety and number of functionally equivalent items that are stocked by inventory management systems in response to marketing, acquisitions, sales incentives, and the lack of life cycle controls
Summary
An effective and efficient selection of medical items and supplies can lead to the better management of inventory within a healthcare organization’s supply chain and, a more sustainable system, as well as a reduced total cost. SKU proliferation is a problem for the supply chain and might be attributed to many reasons, of which physician preference items (PPIs) is a significant contributor. Cross-functional teams consisting of clinicians, supply chain professionals (SCP), value analysis professionals, and healthcare administrators discuss and decide which item to purchase This process is called value analysis by some organizations. Due to the lack of quantitative evaluation of the item’s value versus its cost, decision-makers will not see the consequences of their decision on the supply chain performance and the organization’s financial situation This process is sub-optimal for two primary reasons: first, the criteria considered in the decision process are not weighted, and second, no value–cost tradeoff is shown. To develop a decision-making framework for PPI selection, a multi-criteria decision-making (MCDM) methodology was adopted, namely, multiple-objective decision analysis (MODA) This current work is an extension based on the small size framework published by [5]. The remaining sections of this article are the related literature; the methodology and model; two case studies on the proposed model; and, an evaluation of the framework’s effectiveness and conclusions
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