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- W3091609672 abstract "Abstract To improve patients' welfare, governments can regulate the availability of the low‐price drugs (LPDs) through lower wholesale purchasing or retail selling of the LPD. This paper characterizes two common constrained policies from the practices of pharmaceutical markets. The first (policy P) controls the ratios of the LPD's purchasing quantity and fee. The second (policy S) controls the ratios of the LPD's selling quantity and revenue. Considering a pharmaceutical supply chain consisting of two independent manufacturers and a hospital, we investigate the impacts of two policies on the LPD's availability and the whole industry gains. Our results show that policy P dominates policy S in two aspects: (a) policy P provides a higher product availability of the LPD and (b) policy P reduces less profits for the pharmaceutical supply chain. Specifically, policy P could incur a win‐win outcome for the patient and the supply chain. We further show that the demand allocation of the LPD, the substitution degree, and the profit margins' difference can significantly affect the performances of the policies." @default.
- W3091609672 created "2020-10-08" @default.
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- W3091609672 date "2020-10-02" @default.
- W3091609672 modified "2023-10-03" @default.
- W3091609672 title "An analysis of inventory policies for substitute pharmaceuticals with purchasing or selling constraints" @default.
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- W3091609672 doi "https://doi.org/10.1111/itor.12881" @default.
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