An analytical examination of pharmaceutical distribution and the role of order-fulfillment technology

This dissertation analyzes piece-level order-fulfillment technologies prevalent in pharmaceutical distribution by analyzing four such technologies: unit-dose repackagers, automated dispensing cabinets (ADCs), A-Frame systems, and picking machines. We also develop a technology selection model.;In Contribution 1 we analyze hospital pharmacy unit-dose repackaging technologies. We develop an optimization model that simultaneously determines the level of automation and how each medication should be repackaged. We test our model with hospital data and illustrate how our model can aid in incorporating qualitative aspects into technology selection.;In Contribution 2 we locate medications in ADCs to minimize human selection errors by formulating the problem as a quadratic assignment problem and developing heuristics to solve industry problem instances. To evaluate various medication layouts, we develop a medication pair similarity rating. We demonstrate how our approach can aid in ADC design trade-offs and illustrate the difficulty of manually producing good solutions to this problem.;In Contribution 3 we conduct a systematic analysis of A-Frame systems, presenting an optimization model to determine the amount of infrastructure and the assignment and allocation of SKUs to the A-Frame. We develop throughput equations and heuristics to adjust the allocation and assignment to meet a throughput constraint. We apply our methodology to a pharmaceutical example and illustrate where A-Frames have the greatest impact.;In Contribution 4 we analyze a stock-to-picker system, a picking machine, which consists of multiple pick stations, a common storage area, and a closed-loop conveyor. We develop a probabilistic model to quantify the inventory differences between picking machines and carousel-pod systems. We determine a picking machine's throughput and develop a carousel cycle-time model. We present a case study comparing picking machines to carousel-pod systems, illustrating how our models can be used to answer design questions.;In Contribution 5 we study the piece-level order-fulfillment selection problem. We develop an optimization model that jointly selects technologies and SKU technology assignments, relaxing the sequential approach of previous research. We show that our model provides technology recommendations and SKU assignments consistent with successful implementations. We identify factors in implementing manual versus automated technologies and provide insights into the application of order-fulfillment strategies.