Determining Expected Value and Variance of Demand for Safety Stock Level under Random Parameters

Year 2017, Volume: 13 Issue: 2, 393 - 399, 30.06.2017

Serap Akcan Tahir Khaniyev Ali Kokangül Meral Güldeş

https://doi.org/10.18466/cbayarfbe.319895

Abstract

The patients demand is vital in healthcare area. Thus, to
determine safety stock level is also significant. But, determining safety stock
level in inventory systems based on stochastic lead-time is a much smaller
section of literature especially in healthcare area. Therefore, this study
aimed to contribute to the literature in this area. This study is investigated
for calculating the expected value and variance of demand for determining
safety stock level under random parameters (the number of arrivals, transferal
rates between levels and length of stays). The lead-time required when
supplying medical material in the hospital is also random. A case study is
presented using with the real data obtained from Neonatal Intensive Care Unit
which has a complex inventory system because of the random parameters and
transferal probabilities between levels.

Keywords

Expected Value, Healthcare Systems, Neonatal Intensive Care Unit, Random Parameters, Safety Stock Level

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