Volume 54, Number 5, September-October 2020
|Page(s)||1515 - 1535|
|Published online||23 July 2020|
Coordination contract for a competitive pharmaceutical supply chain considering corporate social responsibility and pricing decisions
School of Industrial Engineering, Iran University of Science and Technology, University Road, Hengam Street, Resalat Square, Narmak, Tehran, Iran
* Corresponding author: email@example.com
Accepted: 23 July 2019
Corporate social responsibility (CSR) and pricing decisions are proposed for a competitive two-level pharmaceutical supply chain (PSC) comprising two pharma-manufacturers and one pharma-retailer. In the investigated PSC, the pharma-manufacturers competitively invest in the CSR effort to produce a new medicine and sell two substitutable products to the market through the pharma-retailer, deciding on selling prices of manufacturers’ products. The PSC under consideration is modeled in three decision-making structures, i.e., decentralized, centralized, and coordinated models. In the decentralized model, the pricing and CSR decisions are individually obtained using a pharma-manufacturers–Stackelberg game structure. In the centralized model as a benchmark, the best performance of the entire PSC system is achieved. Finally, to encourage all PSC members to agree on the coordination plan, a CSR cost-sharing contract is proposed. Our results reveal that under competitive environment, the proposed CSR cost-sharing contract is able to increase market demand by significantly decreasing selling prices and increasing level of the CSR efforts.
Mathematics Subject Classification: 91A40 / 91A80 / 91B24
Key words: Pharmaceutical supply chain coordination / corporate social responsibility (CSR) / pricing / Stackelberg game / substitutable products / CSR cost-sharing contract
© EDP Sciences, ROADEF, SMAI 2020
Current usage metrics show cumulative count of Article Views (full-text article views including HTML views, PDF and ePub downloads, according to the available data) and Abstracts Views on Vision4Press platform.
Data correspond to usage on the plateform after 2015. The current usage metrics is available 48-96 hours after online publication and is updated daily on week days.
Initial download of the metrics may take a while.