Chapter 22 - Integrated production planning and inventory management in a multinational pharmaceutical supply chain

Abstract

Abstract To thrive in a dynamic and competitive market, pharmaceutical companies are in an immediate need of simple but powerful models to efficiently manage their supply chain operations. In this work, we present a simple mixed-integer linear programming (MILP) model for inventory management and production planning in a multisite multinational pharmaceutical supply chain. Our model integrates various components specific to a pharmaceutical supply chain network such as multiechelon manufacturing, safety stock policies, global distribution network, international taxes, and import duties in order to maximize the after-tax profit. Finally, we demonstrate the performance of our model with a motivating example from the literature.