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Multi-objective Pharmaceutical Supply Chain Decision Making and Coordination: A Direct-to-Patient Perspective

In: Liss 2023

Author

Listed:
  • Zhengfan Yang

    (University of Science and Technology Beijing)

  • Guiying Wei

    (University of Science and Technology Beijing)

  • Sen Wu

    (University of Science and Technology Beijing)

  • Huixia He

    (University of Science and Technology Beijing)

  • Xiaoling Xiao

    (University of Science and Technology Beijing)

Abstract

To solve the problem of expensive and difficult drug purchase for patients is a series of pain points. With the goal of further reducing drug prices, game theory, multi-objective optimization theory and optimization theory are used to build a medical supply chain model considering Direct-to-Patient under the condition of double objectives. The formation mechanism of drug prices and the realization of balanced economic benefits and social benefits are explored respectively, and coordination contracts are designed to coordinate and optimize the model. Research has shown that excessive social benefit preferences will reduce the total revenue of the drug supply chain; With the increase of social benefit preference, the decline rate of economic benefits under Decentralized decision-making is the slowest. Specialized supply chain operation division is conducive to the implementation of the Direct-to-Patient sales model; The “Government Subsidy + Revenue Sharing” contract can achieve dual Pareto improvements in economic benefits and social benefits for Direct-to-Patient.

Suggested Citation

  • Zhengfan Yang & Guiying Wei & Sen Wu & Huixia He & Xiaoling Xiao, 2024. "Multi-objective Pharmaceutical Supply Chain Decision Making and Coordination: A Direct-to-Patient Perspective," Lecture Notes in Operations Research, in: Daqing Gong & Yixuan Ma & Xiaowen Fu & Juliang Zhang & Xiaopu Shang (ed.), Liss 2023, pages 819-831, Springer.
    • Handle: RePEc:spr:lnopch:978-981-97-4045-1_64
    DOI: 10.1007/978-981-97-4045-1_64
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