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

Abstract

Background: Making smart and digital supply chain have always been considered as a key phenomenon and a vital factor in organizational transformation. Achieving this, plays a key role in a country's health industry; The output can help the policy makers to check the level of flexibility of the smart supply chain and then provide a basis for improving the flexibility in the health industry by presenting possible scenarios. Methods: In this study, the system dynamics approach and VENSIM DSS was used to extract and present a dynamic model to investigate and indicate smart supply chain flexibility in Iran’s health industry. The gap between the current and desired situation has been identified, and then by implementing possible scenarios that have been taken from the opinion of experts, steps have been taken to improve the flexibility of the supply chain. Results: Base on the results, smart supply chain flexibility in Iran is not at a favorable level and probably face 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 warehouse or smart communication by 5% during the period under review. This will increase the average level of smart supply chain flexibility to 2.08% and 1.4%, respectively. Conclusion: According to the scenarios, policy makers can provide the ground 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.

Keywords

• Simulation
• Smart Supply Chain
• Flexibility
• Health Industry
• System Dynamics