Which inventory management theory is widely used in medical logistics?

The Economic Order Quantity (EOQ) model is widely used in medical logistics due to its effectiveness in minimizing the total costs associated with inventory management. EOQ helps organizations determine the optimal order quantity that minimizes the total inventory costs, which include ordering costs and holding costs. This is critical in the medical logistics environment where maintaining a delicate balance between sufficient stock levels to meet patient needs and minimizing waste due to expiration of medical supplies is essential.

By calculating the most cost-effective quantity to order, medical logistics professionals can ensure that they maintain adequate supplies while reducing unnecessary financial burdens on the healthcare system. This is especially relevant in a setting where inventory management directly impacts patient care and safety. Consequently, the EOQ model supports operational efficiency, helping organizations to streamline their procurement processes while controlling inventory costs effectively.