Optimizing costs for vaccine control using the reorder point approach

Authors

  • Lenny Margaretta Huizen Universitas Semarang, Semarang
  • Titis Handayani Universitas Semarang, Semarang
  • Saifur Rohman Cholil Universitas Semarang, Semarang http://orcid.org/0000-0002-2969-980X
  • Yanti Faradilah Universiti Sultan Zainal Abidin, Besut

DOI:

https://doi.org/10.26594/register.v7i1.2099

Keywords:

cost optimization, inventory control, reorder point, safety stock, vaccines

Abstract

Vaccines are biological products that have an important role in human immunity. In Indonesia, some vaccines are categorized as compulsory vaccines and additional vaccines. The demand for additional vaccines is less predictable because they are not mandatory for use. This of course makes the amount of demand for vaccines less predictable. Also, the price of additional vaccines is not cheap when compared to the price of mandatory vaccines. So that the management of vaccines in the pharmacy warehouse is needed so that the amount of supply and demand is balanced so that the costs incurred will be more optimal. The information system regarding vaccine reordering is carried out using a reorder point so that the pharmacy warehouse can order according to the right need and at the right time.  The data used are demand data, prices, storage costs, and message costs. The results of calculations using reorder points within four months with a total purchase for the Rotavirus vaccine was 62 for IDR 28,274,948 and 70 for the hospital of IDR 31,801,500 with a difference of IDR 3,528,552. The calculation result using the reorder point for the Hexaxim vaccine with a total purchase for 4 months was 61 with a nominal value of IDR 58,380,060 while the calculation in the hospital was 67 with a nominal value of IDR 63,971,000 so that a nominal difference of IDR 5,590,940 was obtained.  Use of the return point can be used to alarm when and how many vaccines to order. This can be seen from the cost difference between the pharmacy warehouse and the calculation using the reorder point for the Hexaxim vaccine and the Rotavirus vaccine.

Author Biographies

Lenny Margaretta Huizen, Universitas Semarang, Semarang

Department of Informatics Engineering

Titis Handayani, Universitas Semarang, Semarang

Department of Information Systems

Saifur Rohman Cholil, Universitas Semarang, Semarang

Department of Information Systems

Yanti Faradilah, Universiti Sultan Zainal Abidin, Besut

Department of Computer Science

References

[1] V. Singh, H. Singh and S. Singh, "Drug Inventory Management of A Pharmacy Store by Combined AbcVed Analysis," International Journal on Mechanical Engineering and Robotics (IJMER), vol. 3, no. 5, pp. 19-22, 2015.

[2] A. Darmawan, H. Wong and A. Thorstenson, "Supply chain network design with coordinated inventory control," Transportation Research Part E: Logistics and Transportation Review, vol. 145, 2021.

[3] C. J. Iwu, A. Jaca, L. H. Abdullahi, N. J. Ngcobo and C. S. Wiysonge, "Protocol for a systematic review of the effects of interventions for vaccine stock management," Systematic Reviews, vol. 8, no. 14, 2019.

[4] E. Gooding, E. Spiliotopoulou and P. Yadav, "Impact of vaccine stockouts on immunization coverage in Nigeria," Vaccine, vol. 37, no. 35, pp. 5104-5110, 2019.

[5] L. E. Duijzer, W. v. Jaarsveld and R. Dekker, "Literature review: The vaccine supply chain," European Journal of Operational Research, vol. 268, no. 1, pp. 174-192, 2018.

[6] P. Kelle, J. Woosley and H. Schneider, "Pharmaceutical supply chain specifics and inventory solutions for a hospital case," Operations Research for Health Care, vol. 1, no. 2–3, pp. 54-63, 2012.

[7] A. Thielmann, M.-T. Puth and B. Weltermann, "Improving knowledge on vaccine storage management in general practices: Learning effectiveness of an online-based program," Vaccine, vol. 38, no. 47, pp. 7551-7557, 2020.

[8] S. Sutrisno and P. A. Wicaksono, "Optimal Strategy for Multi-product Inventory System with Supplier Selection by Using Model Predictive Control," Procedia Manufacturing, vol. 4, pp. 208-215, 2015.

[9] D. Hai, Z. Hao and L. Y. Ping, "Model Predictive Control for inventory Management in Supply Chain Planning," Procedia Engineering, vol. 15, pp. 1154-1159, 2011.

[10] D. A. Efrilianda, M. Mustafid and R. R. Isnanto, "Inventory control systems with safety stock and reorder point approach," in 2018 International Conference on Information and Communications Technology (ICOIACT), Yogyakarta, Indonesia, 2018.

[11] C. S. Grewal, S. Enns and P. Rogers, "Dynamic reorder point replenishment strategies for a capacitated supply chain with seasonal demand," Computers & Industrial Engineering, vol. 80, pp. 97-110, 2015.

[12] I. Jurado, J. Maestre, P. Velarde, C. Ocampo-Martinez, I. Fernández, B. I. Tejera and J. d. Prado, "Stock management in hospital pharmacy using chance-constrained model predictive control," Computers in Biology and Medicine, vol. 72, pp. 248-255, 2016.

[13] J. Maestre, M. Fernández and I. Jurado, "An application of economic model predictive control to inventory management in hospitals," Control Engineering Practice, vol. 71, pp. 120-128, 2018.

[14] D. Fu, C. M. Ionescu, E.-H. Aghezzaf and R. D. Keyser, "A Centralized Model Predictive Control Strategy for Dynamic Supply Chain Management," IFAC Proceedings Volumes, vol. 46, no. 9, pp. 1608-1613, 2013.

[15] A. D. Sabila, M. Mustafid and S. Suryono, "Inventory Control System by Using Vendor Managed Inventory (VMI)," in E3S Web of Conferences, 2018.

[16] J. Sambara, N. N. Yuliani, M. Lenggu and Y. Ceme, "Vaccine Storage Profile in Public Health Centers in Kupang City," Jurnal Info Kesehatan, vol. 15, no. 2, pp. 143-163, 2017.

[17] A. H. Nobil, A. H. A. Sedigh and L. E. Cárdenas-Barrón, "Reorder point for the EOQ inventory model with imperfect quality items," Ain Shams Engineering Journal, vol. 11, no. 4, pp. 1339-1343, 2020.

[18] L. M. Huizen and M. Mustafid, "Inventory Control System for Vaccines Distribution With Model Predictive Control In Hospital," in E3S W eb of Conferences, 2018.

[19] A. Pan, S. Leung, K. Moon and K. Yeung, "Optimal reorder decision-making in the agent-based apparel supply chain," Expert Systems with Applications, vol. 36, no. 4, pp. 8571-8581, 2009.

[20] C.-H. Wang, "Some remarks on an optimal order quantity and reorder point when supply and demand are uncertain," Computers & Industrial Engineering, vol. 58, no. 4, pp. 809-813, 2010.

[21] V. Lukinskiy, V. Lukinskiy and B. Sokolov, "Control of inventory dynamics: A survey of special cases for products with low demand," Annual Reviews in Control, vol. 49, pp. 306-320, 2020.

[22] S. K. Chaharsooghi and J. Heydari, "Supply chain coordination for the joint determination of order quantity and reorder point using credit option," European Journal of Operational Research, vol. 204, no. 1, pp. 86-95, 2010.

[23] J. Heizer, B. Render and C. Munson, Operations Management, Boston: Pearson, 2020.

Downloads

Additional Files

Published

2021-03-17

How to Cite

[1]
L. M. Huizen, T. Handayani, S. R. Cholil, and Y. Faradilah, “Optimizing costs for vaccine control using the reorder point approach”, Register: Jurnal Ilmiah Teknologi Sistem Informasi, vol. 7, no. 1, pp. 72–79, Mar. 2021.

Issue

Section

Article