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Integrated supply chain management for perishable products: Dynamics and oligopolistic competition perspectives with application to pharmaceuticals

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  • Chung, Sung Hoon
  • Kwon, Changhyun

Abstract

We propose an integrated supply chain management framework that allows us to explicitly consider the impact of product perishability on a broad scale that includes manufacturers, distribution centers, wholesalers, and demand markets. The framework proposed herein also makes it possible to consider the oligopolistic competition across wholesalers that drives price and demand fluctuations. Furthermore, the supply chain decision rules are derived from necessary conditions in the framework. The inclusion of such salient features allows the framework to generate outcomes that suggest realistic managerial insights. We provide a numerical example in which two multi-national pharmaceutical firms producing a homogeneous medicinal drug and four oligopolistic wholesalers are considered.

Suggested Citation

  • Chung, Sung Hoon & Kwon, Changhyun, 2016. "Integrated supply chain management for perishable products: Dynamics and oligopolistic competition perspectives with application to pharmaceuticals," International Journal of Production Economics, Elsevier, vol. 179(C), pages 117-129.
    • Handle: RePEc:eee:proeco:v:179:y:2016:i:c:p:117-129
    DOI: 10.1016/j.ijpe.2016.05.021
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    References listed on IDEAS

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    9. Chung, Sung H. & Weaver, Robert D. & Friesz, Terry L., 2013. "Strategic response to pollution taxes in supply chain networks: Dynamic, spatial, and organizational dimensions," European Journal of Operational Research, Elsevier, vol. 231(2), pages 314-327.
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    Cited by:

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    2. Bai, Qingguo & Gong, Yeming (Yale) & Jin, Mingzhou & Xu, Xianhao, 2019. "Effects of carbon emission reduction on supply chain coordination with vendor-managed deteriorating product inventory," International Journal of Production Economics, Elsevier, vol. 208(C), pages 83-99.
    3. Muhammad Imran & Muhammad Salman Habib & Amjad Hussain & Naveed Ahmed & Abdulrahman M. Al-Ahmari, 2020. "Inventory Routing Problem in Supply Chain of Perishable Products under Cost Uncertainty," Mathematics, MDPI, vol. 8(3), pages 1-29, March.
    4. Muckstadt, John A. & Klein, Michael G. & Jackson, Peter L. & Gougelet, Robert M. & Hupert, Nathaniel, 2023. "Efficient and effective large-scale vaccine distribution," International Journal of Production Economics, Elsevier, vol. 262(C).
    5. Faghih-Roohi, Shahrzad & Akcay, Alp & Zhang, Yingqian & Shekarian, Ehsan & de Jong, Eelco, 2020. "A group risk assessment approach for the selection of pharmaceutical product shipping lanes," International Journal of Production Economics, Elsevier, vol. 229(C).
    6. Saha, Esha & Rathore, Pradeep & Parida, Ratri & Rana, Nripendra P., 2022. "The interplay of emerging technologies in pharmaceutical supply chain performance: An empirical investigation for the rise of Pharma 4.0," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    7. Duijzer, Lotty Evertje & van Jaarsveld, Willem & Dekker, Rommert, 2018. "Literature review: The vaccine supply chain," European Journal of Operational Research, Elsevier, vol. 268(1), pages 174-192.
    8. Firoz Ahmad, 2022. "Interactive neutrosophic optimization technique for multiobjective programming problems: an application to pharmaceutical supply chain management," Annals of Operations Research, Springer, vol. 311(2), pages 551-585, April.
    9. Shuai Yang & Yujie Xiao & Yong-Hong Kuo, 2017. "The Supply Chain Design for Perishable Food with Stochastic Demand," Sustainability, MDPI, vol. 9(7), pages 1-12, July.
    10. Carlos Franco & Edgar Alfonso-Lizarazo, 2017. "A Structured Review of Quantitative Models of the Pharmaceutical Supply Chain," Complexity, Hindawi, vol. 2017, pages 1-13, December.
    11. Ahmad, Firoz & Alnowibet, Khalid A. & Alrasheedi, Adel F. & Adhami, Ahmad Yusuf, 2022. "A multi-objective model for optimizing the socio-economic performance of a pharmaceutical supply chain," Socio-Economic Planning Sciences, Elsevier, vol. 79(C).

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