Academics / Undergraduate Program / Client Project Challenge / ProjectInventory Management for Penda Health
Penda Health requested support with their inventory management policy, with the ultimate goal of achieving a greater service level for approximately 200 pharmaceutical drugs. By incorporating a periodic review system with a base order up-to level for all drugs, a dynamic and easy-to-use user interface was provided, where Penda Health employees will get the optimal order recommendation for each drug in order to achieve a 95%, 90%, or 85% cycle service level (terminology definitions can be found in Appendix A). The model provides a dramatic improvement of cycle service level for all of their drugs when applied to historical data, as can be seen below in Figure 1.
| Target CSL | CSL in Current Policy | Historical CSL Achieved in Proposed Policy | CSL Improvement |
|---|---|---|---|
| 95% | 58% | 96% | 38% |
| 90% | 53% | 90% | 37% |
| 85% | 63% | 89% | 26% |
| Avg. for All Drugs | 57% | 92% | 35% |
A full report on this project is available by request to jill.wilson@northwestern.edu.
Team: Aylin Elmaagacli, Zueber Juma, Theo Kelly, Tracy Koczela, Bryan Murphy, Pablo Garza Villarreal
Advisors: Professors Werwath and Klabjan