Simulating Flexibility of the Smart Supply Chain in Iran’s Health Industry  Using System Dynamics Approach

Masoud  Hosseinkhani; Seyed Abdollah  Heydariyeh; Farshad  Faezi Razi; Mostafa  Hashemi  Tilehnouei

doi:10.18502/htaa.v7i2.13816

Masoud Hosseinkhani PhD Candidate, Department of Business Management, Semnan Branch, Islamic Azad University, Semnan, Iran
Seyed Abdollah Heydariyeh Assistant Professor, Department of Industrial Management, Semnan Branch, Islamic Azad University, Semnan, Iran.
Farshad Faezi Razi Assistant Professor, Department of Industrial Management, Semnan Branch, Islamic Azad University, Semnan, Iran.
Mostafa Hashemi Tilehnouei Associate Professor, Department of Industrial Management, Semnan Branch, Islamic Azad University, Semnan, Iran.

DOI: https://doi.org/10.18502/htaa.v7i2.13816

Keywords: Simulation; Smart Supply Chain; Flexibility; Health Industry; System Dynamics

Abstract

Background: Making a smart and digital supply chain has always been a key phenomenon and a vital factor in organizational transformation. This can play a key role in a country’s health industry. The output can help policymakers check the smart supply chain’s flexibility level and then provide a basis for improving flexibility in the health industry by presenting possible scenarios.

Objectives: This study aims to improve the flexibility of the smart supply chain using the system dynamics method by improving intelligence variables.

Methods: This study used the system dynamics approach and VENSIM DSS to extract and present a dynamic model to investigate and indicate the smart supply chain’s flexibility in Iran’s health industry. The gap between the current and desired situations was identified, and then by implementing possible scenarios, which have been taken from experts’ opinions, steps were taken to improve the supply chain’s flexibility.

Results: Based on the results, smart supply chain flexibility in Iran is unfavorable and probably faces many problems in providing medicine and health services. Under possible scenarios, the highest level of smart supply chain flexibility in Iran’s health industry relies on the institutionalization of smart warehouses or smart communication by 5% during the period under review. This can increase the average smart supply chain flexibility level to 2.08% and 1.4%, respectively.

Conclusions: According to the scenarios, policymakers can provide the groundwork for improving the flexibility of the supply chain of the health industry by changing one of the two variables of smart warehouse and smart communication.