The effect of finite buffers on the optimal safety stock for unreliable systems

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Healthcare systems across the world are looking at ways of maintaining the continuity of supply of medicines to patients in times of crisis.Whilst this is not a new phenomenon, the additional burden placed on the supply chain during COVID-19 has meant it has come more into the spotlight. The need to use a stockpile can be caused by an interruption to supply, a rapid and unexpected peak in demand, or when both an interruption to supply and a peak in demand occur simultaneously. The objectives of a stockpile will guide the portfolio breadth and depth to be held. Stockpile objectives are broadly driven either by government requirements to protect public health or by organisations seeking toachieve commercial gain. These drivers are not mutually exclusive as in the case of holding safety stock and Public Service Obligation stock. An Emergency Stockpile is Public Health driven and held in order to supply essential medicines during a signifcant or catastrophic event. Emergency stockpiles can be split into three categories — preparation for imminent event, disease specifc response and general contingency stockpiles. Governments and authorities determine which products and volumes should be held in an emergency stockpile which may be guided by the World Health Organizations (WHO) l ist of essential medicines.


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