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Operations Research Applications in Health Care Management pp 569–598Cite as

Procurement Management in Healthcare Systems

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Part of the book series: International Series in Operations Research & Management Science ((ISOR,volume 262))

Abstract

The healthcare industry is viewed as the world’s largest industry in terms of budget, employees, customers, etc. This industry always faces many challenges such as high inflation in healthcare costs, waste of time and resources when supplying the required items and failure to safeguard the availability of supplies. These prevalent issues have imposed various extreme political and public pressures on the healthcare providers. As it is obvious, such challenges greatly depend on the efficiency and effectiveness of procurement processes in the healthcare systems. Procurement management is traditionally considered as the most valuable part of supply chain management affecting many aspects of organizational performance. This fact is much more pronounced in the healthcare sector. Hereupon, the healthcare system needs to provide an efficient management of procurement affairs through efficient decision making techniques (e.g. optimization methods), instead of inert traditional approaches. This chapter introduces the procurement management in healthcare systems and the related challenges as well as some optimization approaches, which have been used to deal with procurement management problems in healthcare systems. Finally, a real practical case study is described and investigated.

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Notes

  1. 1.

    Mixed integer linear programming.

  2. 2.

    Non-linear programming.

  3. 3.

    Mixed integer non-linear programming.

  4. 4.

    Analytic hierarchy process.

  5. 5.

    The concept of bundling products will be discussed in the next subsection.

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Author information

Authors and Affiliations

  1. School of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran

    Abbas Ahmadi & Mir Saman Pishvaee

  2. School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran

    S. Ali Torabi

Authors
  1. Abbas Ahmadi
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  2. Mir Saman Pishvaee
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  3. S. Ali Torabi
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Correspondence to S. Ali Torabi .

Editor information

Editors and Affiliations

  1. Department of Industrial Engineering, Istanbul Technical University, Macka, Istanbul, Turkey

    Cengiz Kahraman

  2. Department of Industrial Engineering, Istanbul Technical University, Macka, Istanbul, Turkey

    Y. Ilker Topcu

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Ahmadi, A., Pishvaee, M.S., Torabi, S.A. (2018). Procurement Management in Healthcare Systems. In: Kahraman, C., Topcu, Y. (eds) Operations Research Applications in Health Care Management. International Series in Operations Research & Management Science, vol 262. Springer, Cham. https://doi.org/10.1007/978-3-319-65455-3_22

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