Abstract
The paper proposes a production-inventory model for pharmaceutical new-products considering long-run profitability and growth of a firm. The demand rate of the new-product, when launched in a market, is dependent on revenue from sales unit, level of stock in hand and advertising/sales team constituted by general physician, pharmacist and other salesmen of the firm. An optimal control policy based on its dynamical system is solved to obtain optimal revenue and advertising effort over time. The paper investigates a stable relation among revenue, advertising effort and sales rate by examining the equilibrium property of a dynamical system. The model also estimates the cost overtime of government and nongovernment organisations.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Systems Science: Operations & Logistics
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
