TITLE:
Research on Coordination of a Pharmaceutical Dual-Channel Supply Chain Considering Pharmaceutical Product Quality and Sales Efforts
AUTHORS:
Lijuan Huang, Yingyu Wu
KEYWORDS:
Pharmaceutical Product Quality, Sales Efforts, Stackelberg Model, Pharmaceutical Supply Chain, Dual-Channel
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.10 No.5,
May
30,
2022
ABSTRACT: With the continuous development of the Internet, online pharmaceutical
channels have been rapidly expanded in many countries. How to give full play to
the advantages of online channels and offline traditional channels to achieve a
win-win situation is a hot research topic at present. Taking the dual-channel
supply chain led by pharmaceutical manufacturers as the research object, considering
the influence of pharmaceutical product quality and pharmaceutical retailers’
sales efforts on demand, the cooperative and decentralized decision models are
compared and analyzed, and the necessity of constructing a coordination model
is demonstrated. From the perspective of supply chain member cooperation and
profit maximization, the combination contract mechanism of “revenue sharing +
quantity discount” is designed to realize channel coordination. The numerical
example study shows that under decentralized decision, when the profit of
pharmaceutical supply chain members reaches the optimal value, the overall
profit of the supply chain does not reach the optimal value. The overall profit
of supply chain system under cooperative decision is always higher than that
under decentralized decision. The combination contract mechanism can
effectively coordinate and optimize the dual-channel pharmaceutical supply
chain, so as to make every member of the supply chain achieve a win-win
situation.