Title: Single-period newsvendor modelling of flu vaccination order quantities

Authors: Rebecca A. Scott; David R. Nowicki; Victor R. Prybutok

Addresses: Department of Marketing and Logistics, University of North Texas, 1155 Union Circle #311396, Denton, TX 76203-5017, USA ' Department of Marketing and Logistics, College of Business and Engineering, University of North Texas, 1155 Union Circle #311396, Denton, TX 76203-5017, USA ' Toulouse Graduate School, University of North Texas, 1155 Union Circle #305459, Denton, TX 76203-5017, USA

Abstract: The objective of this paper is to determine optimal inventory levels of flu vaccines at one medical facility using the newsvendor model while also maintaining customer service levels and maximising profit. Using four years of empirical evidence, we illustrate the optimal ordering quantity of flu vaccine by healthcare managers to provide proper medical coverage. This research provides an initial step for ordering quantities of perishable biopharmaceuticals. The research also develops a framework for the logistics of ordering in the presence of multiple constraints throughout the supply chain network. An important contribution of this work is demonstrating the value of the posited logistics model within the context of a healthcare application that has the potential to influence practice.

Keywords: perishable biopharmaceuticals; healthcare management; flu vaccinations; influenza vaccines; logistics management; newsvendor modelling; ordering; perishable goods; scheduling; supply chain management; SCM; order quantities; inventory management; inventory modelling.

DOI: 10.1504/IJLSM.2015.072750

International Journal of Logistics Systems and Management, 2015 Vol.22 No.4, pp.483 - 499

Received: 01 Aug 2014
Accepted: 07 Sep 2014
Published online: 28 Oct 2015 *

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