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Journal of Healthcare Engineering
Volume 2017, Article ID 9210532, 12 pages
https://doi.org/10.1155/2017/9210532
Research Article

Inventory Control System for a Healthcare Apparel Service Centre with Stockout Risk: A Case Analysis

1The Shanghai Lixin University of Accounting and Finance, 995 Shangchuan Road, Pudong New Area, Shanghai 201209, China
2The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong

Correspondence should be addressed to An Pan; moc.anis@nanassim

Received 12 May 2017; Revised 18 July 2017; Accepted 10 September 2017; Published 19 November 2017

Academic Editor: Andreas Maier

Copyright © 2017 An Pan and Chi-Leung Hui. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Based on the real-world inventory control problem of a capacitated healthcare apparel service centre in Hong Kong which provides tailor-made apparel-making services for the elderly and disabled people, this paper studies a partial backordered continuous review inventory control problem in which the product demand follows a Poisson process with a constant lead time. The system is controlled by an (Q,r) inventory policy which incorporate the stockout risk, storage capacity, and partial backlog. The healthcare apparel service centre, under the capacity constraint, aims to minimize the inventory cost and achieving a low stockout risk. To address this challenge, an optimization problem is constructed. A real case-based data analysis is conducted, and the result shows that the expected total cost on an order cycle is reduced substantially at around 20% with our proposed optimal inventory control policy. An extensive sensitivity analysis is conducted to generate additional insights.