The Impact on Stock-Outs of Incorporating Drones in the Supply Chain of Essential Drugs in Zambia

This research aims to replicate results obtained in a paper by Leung et al. concerning stock-outs of essential medicines in Zambia and the effect of several inventory policies on these stock-outs. The second goal of this study is to investigate the benefits of incorporating drones in the distribution system of these medicines to lower stock-outs. A simulation model is used as a method to perform the replication. This simulation model is then extended to incorporate drones. This research concludes that recommended inventory policies cause stock-outs by not properly accounting for demand seasonality and lead time problems. It is shown that a drone system in sub-Saharan countries is feasible and can reduce stock-outs and inventory levels at health clinics. However, this research reveals several complicating factors regarding the implementation of a drone system that need to be taken into consideration when deciding on whether a drone system is the best way to lower stock-outs of essential medicines.