Stochastic Optimization of Vaccine Vial Replenishment

Type Working Paper
Title Stochastic Optimization of Vaccine Vial Replenishment
Author(s)
Publication (Day/Month/Year) 2016
URL http://www.optimization-online.org/DB_FILE/2016/08/5600.pdf
Abstract
We present a two-stage stochastic linear programming model to manage the inventory of vaccine vials in
developing countries. In these countries immunization programs often involve targeted outreach services
in remote locations. Organizations managing these programs are in need of tools which identify inventory
replenishment and vaccine utilization plans to minimize costs and wastage while achieving greater coverage
level. Wastage incurs when doses are discarded from open vials after their safe use time. We propose a model
which identifies optimal portfolios of different sized vaccine vials, and corresponding vial-opening decisions in
the face of uncertainty in patient arrival. This model is a two-stage stochastic program which we solve using
an extension of the stochastic Benders decomposition algorithm (L-shaped method). Computational results
on instances built using data from Bangladesh reveal that our solution approach outperforms the standard
L-shaped method. Experimental results are used to develop simple and economic vaccine administration
policies usable by healthcare administrators.

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