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Evaluating the effects of quality regulations on the pharmaceutical supply chain
International Journal of Production Economics ( IF 12.0 ) Pub Date : 2020-12-01 , DOI: 10.1016/j.ijpe.2020.107770
Xu Chen , Shanshan Li , Xiaojun Wang

Abstract This paper considers a two-echelon pharmaceutical supply chain comprising two pharmaceutical manufacturers and a pharmacy. We derive optimal decisions for three different supply chain power structures considering two scenarios: one scenario featuring quality regulation, and one without. By comparing the equilibriums of the two regulatory scenarios under different power structures, we then evaluate the effects of quality regulation and power structure on pharmaceutical firms' decisions, profits and social welfare. Our results show that the product differentiation between two pharmaceutical manufacturers will be reduced through quality regulation, serving to intensify price competition between them. This has a negative impact on the two pharmaceutical manufacturers but a positive effect on the pharmacy's profit. However, an appropriate level of minimum quality standards can enhance social welfare and the economic performance of the whole pharmaceutical supply chain, resulting in a win-win outcome. In addition, our results demonstrate that the balanced power structure has a positive effect on the pharmaceutical supply chain's economic performance and social welfare.

中文翻译:

评估质量法规对药品供应链的影响

摘要 本文考虑了一个由两家制药商和一家药店组成的两梯队药品供应链。我们考虑两种情况为三种不同的供应链权力结构得出最佳决策:一种情况具有质量监管,另一种没有。通过比较不同权力结构下两种监管情景的均衡,我们评估了质量监管和权力结构对制药企业决策、利润和社会福利的影响。我们的研究结果表明,通过质量监管,两家制药商之间的产品差异将被缩小,从而加剧它们之间的价格竞争。这对两家制药商产生了负面影响,但对药店的利润产生了积极影响。然而,适当水平的最低质量标准可以提高整个医药供应链的社会福利和经济绩效,从而实现双赢。此外,我们的研究结果表明,平衡的权力结构对医药供应链的经济绩效和社会福利具有积极影响。
更新日期:2020-12-01
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