Strategic Sourcing of Air Force Contingency Pharmaceuticals: A Cost-Benefit Analysis Approach
Abstract:
The purpose of this research is to identify and explore effective supply chain principles, through the theory of transaction cost economics, as mitigating measures to improve current contingency pharmaceutical item shortfalls in the Air Force Medical Service Contingency Pharmaceutical Program. Through the methodology of cost benefit analysis, various alternative measures constructed upon supply chain practices of demand aggregation and centralized procurement are evaluated. The findings of this research suggests that application of centralized purchasing principles, which leverage prime vendor contract fill rates for shortage items, can lead to significant increases in pharmaceutical material availability.