Study On The Ordering Decision&Coordination Of Pharmaceutical Supply Chain

In recent years, with our government to strengthen drug control and management, improve the drug distribution system, a series of reform measures had been continuous published, China’s pharmaceutical industry develop at a very fast pace. Supply chain management as a modern management philosophy is introduced into the pharmaceutical industry. Pharmaceutical supply chain management integrate the pharmaceutical enterprises into entirety, coordinate activities between enterprises low-cost, effective to achieve maximum profit of supply chain system. To implement pharmaceutical supply chain management can establish a good strategic partnership and make full use of all resources to gain scale and competitive advantages of entire supply chain.This paper applies the supply chain theory into pharmaceutical industry, uses the qualitative analysis and quantitative analysis methods to study and describe the ordering decision-making and coordination of the pharmaceutical supply chain. The main content of this paper are as follows:Firstly, introduces the development of domestic and international pharmaceutical distribution system, defines the concept of pharmaceutical supply chain management, elaborates the status of supply chain management and supply chain coordination contracts, reviews buyback contract. The paper establishes two-stage pharmaceutical supply chain, taking the supply chain system consisting of a single pharmaceutical supplier and single retailer under random demand as the research object, uses buyback contract to achieve supply chain coordination.Secondly, considering a two level pharmaceutical supply chain which faces a stochastic demand influenced by retailer sales effort, the collaboration necessity is analyzed by comparing the total profit in the centralized system with the decentralized system, then applies incentive and punishment mechanism to optimize the buyback contract, under the retailer sale promotion the achievement of the supply chain has greatly improved. Finally, taking into account the variable circumstances of the sales price, because sales campaign twists the benefit balance between the supplier and the retailer, in order to coordinate the supply chain, this paper provides a new contract which is buyback combined with cost sharing, proves that the combine contract can coordinate the supply chain.