Possibility of Inventory Pooling in China’s public hospital and appraisal about its performance

Aiming to problems of high drug shortage possibility and rupture of liquidity caused by serious liquidity occupied in drug supply chain of public hospitals in China, this paper discusses effectiveness about application of Inventory Pooling theory in this section. Employing Vensim software of system dynamic, the paper establishes 2 simulation models of whole process from drug demand to supply involved by patients, hospitals, distributors and manufacturers in traditional mode and the Pooling mode respectively. By quantitative comparison and analysis, it is proved that Inventory Pooling could be an effective method to improve performance of drug supply chain in China, especially in cutting down shortage possibility and reducing liquidity occupied.