The influence of demand satisfication based on customer priorities on clinical trial success rate
Palli Menon, Vivek Kakkiyoor
Date of Issue2015
School of Mechanical and Aerospace Engineering
In the pharmaceutical industry, introducing a new drug into the market requires billions of dollars in expenditure. Clinical trial costs constitutes of a very expensive development process which includes producing and distributing optimal quantity of inventory. The main priority in clinical trial is to ensure patients receive appropriate and robust medical supplies swiftly with continuous resupplies. Various studies were performed to determine the right quantity to be produced at the right time using demand forecast information. However, assuming periodic reviews in three phase clinical trials, understanding demand forecast within each period becomes challenging. In this study, a simulation model is created to allocate optimum inventory to satisfy the stochastic demand. This is to minimize the inventory costs using a two-echelon distribution system with rolling scheme. The simulation model is performed using Matlab to determine the customer demand and inventory levels. The simulation study is trying to prove the numerical findings. This is so that the total costs of a two-echelon centralised supply chain decreases monotonically with the initial inventory quantity within a replenishment cycle.
Final Year Project (FYP)
Nanyang Technological University