A sustainable pharmaceutical supply chain model for household energy consumption and expiration cost under decision making approach

Abstract

In a competitive market, pharmaceutical companies have learned that the development of pharmaceutical supply chain management performance is critical to maintaining. In such cases, this proposed model will be helpful. This paper discusses the necessity of two-tier pharmaceutical supply chain management in healthcare industries with visiting interval, service level, and household energy consumption. This research illustrates the directions towards an integrated system approach in pharmaceutical supply chain management, and it involves mathematical formulation, decision-making approaches, household energy consumption with expiration cost. This study presents two types of decision-making approaches: coordinated and collaborative decision-making. The objective function for both decision-making approaches is considered a profit function subject to constraints. The profit functions of coordinated and collaborative approaches are classified into four decision-making cases: (i) decentralized, (ii) centralized, (iii) economic, and (iv) social. Moreover, this study will be helpful to identify the economic and social factors for maximizing profit under the decision-making structure in the pharmaceutical supply chain management. Finally, we provide a few numerical experiments, sensitivity analysis, and managerial insights, which give more aspects to this model.