Abstract
In this paper, a location-inventory model is developed for a three-echelon pharmaceutical network design problem. The problem includes several strategic and tactical decisions (i.e. opening of manufacturing and distribution centers, material flows in the network, and the optimal inventory policy taking into account products’ perishability) while aiming at minimizing the total cost of the network. A possibilistic programming approach is devised to cope with the imprecise parameters. In order to verify and analyze the proposed model, it is tested on a real case study and useful managerial insights are provided by conducting several sensitivity analyses.
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