Study on sustainable development of pharmaceutical health industry under ecological coordination

Abstract

Particularly in the post-pandemic period, where public health emergencies offer a greater risk of supply disruptions, the operational hazards of pharmaceutical supply chains are uncertain. One of the main concerns for businesses is how to handle the risk of supply disruption and take the necessary precautions to lower the chance of loss. Pharmaceutical raw material suppliers, pharmaceutical manufacturers and medical institutions constitute a complete three-tiered supply chain. On the basis of this, in Materials and methods part, a share contract based on buyback proceeds is created as a result, and a combination contract based on centralized decision-making and decentralized decision-making is employed to maximize the order volume of pharmaceutical supply chain participants. An out-of-stock cost pharmaceutical supply chain model is created, and a related solution is provided and measurable examples. In Results and discussion part, to confirm the accuracy of the model and algorithm, numerical examples are employed. Buyback prices and order volumes were subjected to sensitivity analysis, and discussion is had over how various parameters affect a model's performance. Due to supply disruptions, the study's findings show that there is “double sourcing” between upstream pharmaceutical raw materials and downstream major suppliers, necessitating the establishment of a supply chain with numerous standby suppliers. At the same time, modifying the contract parameters can improve the supply motivation of backup suppliers and guarantee the profitability of downstream medical institutions.