The paper discusses the challenges of healthcare supply chain management emphasizing the hospital's internal supply chain management. The main focus of the paper is the distribution of medical supplies from the central storeroom to nursing units. The hospital internal supply chain is quite complex, as hospitals are usually consist of a number of clinical department, such as emergency, laboratory, cardiology, surgery etc., with more than twenty inpatient beds or nursing unites organized in each. All these units must have the needed medical supplies and pharmaceutical products for patient care. The needed supplies go through a series of steps before reaching the end use point.