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Abstract We present a stochastic optimization model for allocating and sharing a critical resource in the case of a pandemic. The demand for different entities peaks at different times, and an initial inventory for a central agency are to be allocated. The entities (states) may share the critical resource with a different state under a risk‐averse condition. The model is applied to study the allocation of ventilator inventory in the COVID‐19 pandemic by FEMA to different U.S. states. Findings suggest that if less than 60% of the ventilator inventory is available for non‐COVID‐19 patients, FEMA's stockpile of 20 000 ventilators (as of March 23, 2020) would be nearly adequate to meet the projected needs in slightly above average demand scenarios. However, when more than 75% of the available ventilator inventory must be reserved for non‐COVID‐19 patients, various degrees of shortfall are expected. In a severe case, where the demand is concentrated in the top‐most quartile of the forecast confidence interval and states are not willing to share their stockpile of ventilators, the total shortfall over the planning horizon (until May 31, 2020) is about 232 000 ventilator days, with a peak shortfall of 17 200 ventilators on April 19, 2020. Results are also reported for a worst‐case where the demand is at the upper limit of the 95% confidence interval. An important finding of this study is that a central agency (FEMA) can act as a coordinator for sharing critical resources that are in short supply over time to add efficiency in the system. Moreover, through properly managing risk‐aversion of different entities (states) additional efficiency can be gained. An additional implication is that ramping up production early in the planning cycle allows to reduce shortfall significantly. An optimal timing of this production ramp‐up consideration can be based on a cost‐benefit analysis.
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When nothing is certain, anything is possible: open innovation and lean approach at MVM
Using a participatory observation approach, this paper aims at exploring how public and private organizations have collaborated in response to the COVID-19 pandemic. We examine the case of MechanicalVentilator Milano (MVM), an international project with over 250 contributors and partners; this project aimed to achieve the challenging goal of designing and realizing a mechanical ventilator for mass production in about 6 weeks. The project received the Emergency Use Authorization granted by the U.S. Food and Drug Administration. The MVM ventilator is a reliable, fail-safe, and easy-to-operate mechanical ventilator that can be produced quickly at a large-scale, based on the readily available parts. The success of the MVM case is unique as it adopts open innovation practices to generate technology innovation, in addition to a lean perspective. Through the MVM project description, this study offers a framework that explains the interplay between open innovation and lean approach, highlighting the different internal and external forces and types of collaborations, and offering fine-grained insights in to the role of universities as platforms of multidisciplinary knowledge. This framework might serve as a basis for future theoretical and empirical research, providing practitioners with new best practices that are essential when facing a severe crisis like COVID-19.
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- PAR ID:
- 10282459
- Date Published:
- Journal Name:
- R&D Management
- Volume:
- 2021
- Issue:
- Special Issue
- ISSN:
- 0033-6807
- Page Range / eLocation ID:
- 12453
- Format(s):
- Medium: X
- Sponsoring Org:
- National Science Foundation
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- Free Publicly Accessible Full Text
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Accepted Manuscript1.0
- Journal Article:
- https://doi.org/10.1111/radm.12453
