Drug procurement and coordination decision under non‐directed donation behavior

Abstract

AbstractThe frequent occurrence of public emergencies seriously threatens human health. As the supplier of drugs, besides producing drugs, pharmaceutical manufacturers also actively launch drug donations. However, whether this donation will affect the procurement decisions of hospital pharmacies and help relieve the supply pressure is worthy of attention. This paper aims to analyze the procurement and donation decisions under non‐directed donation scenario. Besides, we extend the application of collaborative decisions in the pharmaceutical supply chain. Our results point out that donations made by the pharmaceutical manufacturer always benefit the hospital pharmacy and the pharmaceutical supply chain system, and only in certain circumstances can it make itself more profitable. In non‐directed donation scenario, drug donation and procurement quantities under centralized decision are always higher than that under decentralized decision. The social collaborative decision has more advantages in improving members' decisions and profits. The coordination effect of collaborative decisions is often better when there are significant fluctuations in the wholesale price. Through our analysis, it can provide a reference for pharmacies and pharmaceutical manufacturers to make appropriate procurement and donation decisions.