Effect of information sharing and capacity adjustment on the healthcare supply chain: a case of flood disaster

Abstract

In recent years, flood has become a tragic disaster in Malaysia causing loss of lives and properties. The damages brought by the flood are partly due to lack of preparedness and responses. Researchers have reported studies on the flood preparedness and response. Nevertheless, limited studies have provided a holistic perspective on the flood response operations. This paper attempts to analyze the flood preparedness holistically through system dynamics modelling approach. A system dynamic model consisting of a flood evacuation sub-model and a healthcare supply chain sub-model is developed. The hydrological data for the Kelantan River basin in Malaysia is used to populate the model. Decisions on the evacuation are based on the river level and flood risk information. Bullwhip Effect is formulated as a performance indicator to evaluate the efficiency of the healthcare supply chain model. The effects of information sharing and the capacity adjustment delay on the bullwhip effect were investigated. The findings suggest that reducing the capacity adjustment time and sharing demand information to the upstream healthcare supply chain yields a better overall performance for the health care supply chain.