Research On Hospital Drug Supply Chain Coordination Considering Loss Cost

In our country, the demand for healthcare improves gradually with the development of economy. Since the reform and opening up, the level of healthcare has been greatly improved. But there are still many issues need to be dealt with. Such as the uneven distribution of healthcare resources, the difficulty and expensive of getting treatment and medicine, the expiry and waste of medicines, drug safety issues and so on.Drug management is a part with much attentions all the time. Hospital is the center of medical resources. And drug management is particularly important to a hospital. The drug shortage will probably affect the operation of treatment. And expired drug not only leads to a large waste of resource and a loss of economic but also adds disposal cost.There are two major parts in the drug management of M hospital:the suppliers and the storeroom of M hospital. For the hospital, on the one hand, it orders drugs for the suppliers and do the order management. On the other hand, the internal management of inventory control of its storeroom is also very important.After the investigation of M hospital, there are two problems:1.The communication between suppliers and M hospital is not smoothly enough. And the inventory-related data is not shared and the collaboration of them is not close.2. In the cost management, there is not enough attention on the loss cost due to the expired drug, packaging damage and so on.Therefore, the paper is writing from the perspective of fine management. Based on the theory of supply chain coordination, using the EOQ model, newsboy model and buy-back contracts to study the coordination of two-stage supply chain made up of suppliers and the hospital with the consideration of loss cost. Firstly, building and analyzing the EOQ model both in decentralized decision-making and centralized decision-making aspects. And making the comparison of them. Secondly, using the newsboy model and buy-back contracts to study the coordination of two-stage supply chain of uncertainty demand.Then using M hospital as the case, study, the applicability of the model to M hospital drug inventory management. And putting forward reasonable suggestions for the improvement.