Volume 9, Issue 3 (10-2025)
EBHPME 2025, 9(3): 0-0 |
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Otrodi F, Khademi Zare H, Zare Mehrjerdi Y, Fakhrzad M B. Addressing Imbalances from Fixed Pricing, Subsidies, and Misused Discounts in Pharmaceutical Chains through Coordination. EBHPME 2025; 9 (3)
URL: http://jebhpme.ssu.ac.ir/article-1-547-en.html
URL: http://jebhpme.ssu.ac.ir/article-1-547-en.html
Department of Industrial Engineering, Yazd University, Yazd, Iran , hkhademiz@yazd.ac.ir
Abstract: (27 Views)
Background: In regulated markets such as Iran, Canada, and Japan, fixed pricing policies, government subsidies, and misused discount practices contributed to financial instability and persistent medicine shortages. These regulatory constraints limited pricing flexibility, creating misaligned incentives among manufacturers, distributors, and retailers, which fueled competition and disrupted equitable access to essential drugs. The reliance on poorly designed discounts further complicated supply chain dynamics, leading to inefficiencies and reduced availability.
Methods: This study developed a practical decision-support framework, tailored to the Iranian context where perishability and financial challenges were prominent to address these issues. The framework optimized discount strategies to align with existing subsidy structures, fostering better coordination across supply chain actors. Various operational scenarios were evaluated using a mathematical model incorporating perishability dynamics and sensitivity analysis to assess impacts on supply chain performance.
Results: The findings revealed that, unlike the common practice of using discounts solely to boost sales while neglecting other supply chain members, potentially leading to their bankruptcy, this study’s coordinated approach enhanced overall supply chain profitability. This strategy balanced incentives across actors, mitigating financial strain and improving drug availability, particularly in underserved regions.
Conclusion: This study offered policymakers insights to refine subsidy allocation and enhance equitable healthcare access through infrastructure support. For managers, it provided actionable tools to boost supply chain resilience via coordinated discount practices and demand alignment. The approach tackled immediate challenges and laid a foundation for sustainable healthcare systems, advancing knowledge by integrating coordination into subsidized supply chain models.
Methods: This study developed a practical decision-support framework, tailored to the Iranian context where perishability and financial challenges were prominent to address these issues. The framework optimized discount strategies to align with existing subsidy structures, fostering better coordination across supply chain actors. Various operational scenarios were evaluated using a mathematical model incorporating perishability dynamics and sensitivity analysis to assess impacts on supply chain performance.
Results: The findings revealed that, unlike the common practice of using discounts solely to boost sales while neglecting other supply chain members, potentially leading to their bankruptcy, this study’s coordinated approach enhanced overall supply chain profitability. This strategy balanced incentives across actors, mitigating financial strain and improving drug availability, particularly in underserved regions.
Conclusion: This study offered policymakers insights to refine subsidy allocation and enhance equitable healthcare access through infrastructure support. For managers, it provided actionable tools to boost supply chain resilience via coordinated discount practices and demand alignment. The approach tackled immediate challenges and laid a foundation for sustainable healthcare systems, advancing knowledge by integrating coordination into subsidized supply chain models.
Keywords: Pharmaceutical Industry, Marketing, Health Policy, Healthcare Economics and Organizations, Health Services Accessibility
Type of Study: Original article |
Subject:
Health Economics
Received: 2025/09/16 | Accepted: 2025/10/27 | Published: 2025/10/27
Received: 2025/09/16 | Accepted: 2025/10/27 | Published: 2025/10/27
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