Abstract
This study is motivated by the challenges faced by clinics in sub-Saharan Africa in allocating scarce and unreliable supply of antiretroviral drugs (ARVs) among a large pool of eligible patients. Existing discussion of ARV allocation is focused on qualitative rules for prioritizing certain socioeconomic and demographic patient segments over others at the national level. However, such prioritization rules are of limited utility in providing quantitative guidance on scaling up of treatment programs at individual clinics. In this study, we take the perspective of a clinic administrator whose objective is to maximize the quality-adjusted survival of the entire patient population in its service area by allocating scarce and unreliable supply of drugs among two activities: initiating treatment for untreated patients and continuing treatment for previously treated patients. The key trade-off underlying this allocation decision is between the marginal health benefit obtained by initiating an untreated patient on treatment and that obtained by avoiding treatment interruption of a treated patient. This trade-off has not been explicitly studied in the clinical literature, which focuses either on the incremental value obtained from initiating treatment (over no treatment) or on the value of providing continuous treatment (over interrupted treatment) but not on the difference of the two. We cast the clinic's problem as a stochastic dynamic program and provide a partial characterization of the optimal policy, which consists of dynamic prioritization of patient segments and is characterized by state-dependent thresholds. We use this structure of the optimal policy to design a simpler Two-Period heuristic and show that it substantially outperforms the Safety-Stock heuristic, which is commonly used in practice. In our numerical experiments based on realistic parameter values, the performance of the Two-Period heuristic is within 4% of the optimal policy whereas that of the Safety-Stock heuristic can be as much as 20% lower than that of the optimal policy. Our model can serve as a basis for developing a decision support tool for clinics to design their ARV treatment program scale-up plans.
| Original language | English |
|---|---|
| Pages (from-to) | 883-905 |
| Number of pages | 23 |
| Journal | Production and Operations Management |
| Volume | 31 |
| Issue number | 3 |
| Early online date | 4 Nov 2021 |
| DOIs | |
| Publication status | Published - Mar 2022 |
Bibliographical note
AcknowledgmentsThe authors are grateful to members of Project USAID
DELIVER for several insights into the workings of ARV
supply chains in resource-constrained settings. The study
benefitted from several helpful discussions with Felipe
Caro, Scott Carr, and Kevin McCardle of the UCLA Anderson School of Management and Drs. Thomas Coates, John
Fahey and Martin Shapiro of the David Geffen School of
Medicine at UCLA. The authors also thank the seminar participants at UCLA, ISB, Georgia Tech, Northwestern, NUS,
UT Austin, INSEAD, and Dartmouth for many insightful
comments. The third author is grateful to the Technical University Eindhoven, The Netherlands, where he was on sabbatical during part of this study.
Publisher Copyright:
© 2021 Production and Operations Management Society
Funding Information:
The authors are grateful to members of Project USAID DELIVER for several insights into the workings of ARV supply chains in resource-constrained settings. The study benefitted from several helpful discussions with Felipe Caro, Scott Carr, and Kevin McCardle of the UCLA Anderson School of Management and Drs. Thomas Coates, John Fahey and Martin Shapiro of the David Geffen School of Medicine at UCLA. The authors also thank the seminar participants at UCLA, ISB, Georgia Tech, Northwestern, NUS, UT Austin, INSEAD, and Dartmouth for many insightful comments. The third author is grateful to the Technical University Eindhoven, The Netherlands, where he was on sabbatical during part of this study.
Publisher Copyright:
© 2021 Production and Operations Management Society