A New Model to Analyze the Efficiency of a Multilevel Drug Supply Network for Hospitals

Document Type : Research Paper


1 Department of Industrial Management, West Tehran Branch, Islamic Azad University, Tehran, Iran

2 Department of Information Systems Management, University of Bayreuth, Bayreuth, Germany


It is of special importance to procure medicines as strategic commodities. The purpose of this study is to manage a drug supply network using a non-radial data envelopment analysis (DEA) model. This study is conducted in private hospitals in Tehran. In this regard, a drug supply chain at three levels of suppliers, distributors, and consumers (pharmacies and hospitals) is examined. Indicators and limitations of the network are identified and then the appropriate model is formulated using mathematical equations on the basis of a non-radial DEA model. In order to validate the proposed model, data related to 30 hospitals during 2019 and 2020 is evaluated. According to this model, 5 hospitals had efficient supply networks and 25 hospitals had deficient supply networks. The proposed new model is able to evaluate the multilevel supply network and intermediate components in hospitals. The problems of the drug supply network are due to the increase in demands for the time period under consideration and the existence of inconsistencies in the drug supply chain in hospitals, which has led to an increase in inefficient hospitals.


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  • Receive Date: 09 May 2021
  • Revise Date: 26 July 2021
  • Accept Date: 11 August 2021
  • First Publish Date: 11 August 2021