A Hybrid Discrete-Event and Agent-Based Simulation Approach to Model Circular Supply Chains in Healthcare: A Case Study of Laparoscopic Scissors

Abstract

Circular healthcare supply chains are inherently complex, characterised by interdependencies among their actors and high uncertainty in product flows and performance. Current methods used to predict the outcomes of transitioning to circular economy (CE) are limited and mostly static. This paper demonstrates the use of simulation to assess the effect of introducing circular products and the implications across the healthcare supply chain accounting for variability. The laparoscopic scissors supply chain is chosen as a case study example. To the best of our knowledge, this is the first study that assesses the implications of introducing circular product (medical devices) designs at both the individual supply chain member and overall system level. The model can be also used to inform optimal inventory strategies for hospitals, to ensure that patient safety and hospital operations are maintained. Our findings suggest that adopting circular products can reduce the environmental impact, but to achieve significant reductions in both cost and emissions, it requires significant upfront investment. We discuss the theoretical and practical implications of our study in developing tools to support the transition to CE.