Operational Strategies To Match Surplus With Humanitarian Needs

Press release from the Scheller College of Business:

02-24-2018

Authors
Can Zhang, Georgia Institute of Technology Atalay Atasu, Georgia Institute of Technology Turgay Ayer, Georgia Institute of Technology L. Beril Toktay, Georgia Institute of Technology
Research Questions Addressed
How can medical surplus recovery organizations (MSROs) overcome a challenging supply chain—limited supply, high and varied demand, and limited information about recipient needs—to deliver the right medical product to the right recipient healthcare facility? Can MSROs simultaneously provide information about their inventory levels and obtain accurate need information from recipients?
Primary Findings
Providing recipient organizations with information about the MSRO’s current medical surplus inventory is considered a best practice, but it can be problematic. Time-based competition can result in recipients selecting and receiving medical items that might not meet their most pressing needs. Two alternative strategies can improve the value MSROs can provide to all their recipients: i) not sharing inventory information with recipients; and ii) withholding information regarding the preferences of other recipients (i.e., competitors) in the recipient pool.

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RELATED LINKS

• Bridging Surplus with Need: Improving Healthcare in the Developing World
• Atasu, A., Toktay, B., Yeo, W. M., & Zhang, C. (2017). Effective medical surplus recovery. Production and Operations Management, 26, 1142–1162.

This press release was produced by the Scheller College of Business. The views expressed here are the author’s own.