A Centralized Distribution Network Model for Reducing Economic and Environmental Impact in Healthcare Logistics

Recent studies have shown that logistics costs in healthcare can constitute up to 35% of hospital expenditures, a figure significantly higher than in other industries. This elevated cost is primarily driven by the decentralized structure of healthcare supply chains, which rely on a large number of warehouses to maintain high service levels and ensure rapid response times. Although the presence of numerous warehouses can support superior service delivery, it also contributes to increased warehousing costs and potential inefficiencies. As such, healthcare systems are confronted with a complex trade-off: maintaining a large number of warehouses to optimize service levels or consolidating them to reduce costs. To address this challenge, the present research work aims to develop an analytical model that facilitates the design of a centralized distribution network, ensuring an optimal solution from both economic and environmental perspectives. The proposed model integrates facility location decisions with vehicle routing considerations. Specifically, it enables a comparative analysis of alternative centralized configurations, which vary in terms of vehicle parameters such as cargo capacity and distance constraints. The model was tested through a case study involving the distribution of medical supplies in the Campania Region (Southern Italy). The results demonstrate the model’s capability to identify the most effective logistics strategy for minimizing the economic and environmental impact of medical supply distribution while maintaining high service levels. Additionally, the approach provides valuable insights into how healthcare systems can achieve cost efficiency and sustainability by optimizing their distribution networks, offering a framework for future logistical improvements in healthcare systems worldwide.