Research on green supply chain coordination strategy for uncertain market demand

Pak J Pharm Sci. 2015 Mar;28(2 Suppl):687-92.

Abstract

Based on the status that the green market began to develop (e.g. pharmaceutical industry) in Mainland China, the paper mainly discusses how members of the green supply chain (GSC) cooperate effectively in the process of the supply chain operations. For the uncertainties existing in the market demand of the green products, the GSC coordination strategy is put forward based on the Stackelberg game that the manufacturer is the leader and distributors are the followers. The relationship between the proposed coordination strategy and several factors including the distributor's amount, the distributor's risk aversion and the uncertainties of market demand are analyzed. It indicates that, when there are uncertainties existing in the market demand of the green product, the revenue of each enterprise, the overall revenue and the customer's welfare all decrease; while the increase in the number of distributors and low risk aversion of them are beneficial to the entire GSC and the customer. The conclusions have good guidance for the operational decisions of the green supply chain when the green market is in its initial formation.

Publication types

  • Research Support, Non-U.S. Gov't

MeSH terms

  • Commerce / economics
  • Commerce / organization & administration*
  • Cooperative Behavior
  • Drug Costs
  • Drug Industry / economics
  • Drug Industry / organization & administration*
  • Health Services Accessibility / economics
  • Health Services Accessibility / organization & administration*
  • Health Services Needs and Demand / economics
  • Health Services Needs and Demand / organization & administration*
  • Humans
  • Models, Statistical
  • Pharmaceutical Preparations / economics
  • Pharmaceutical Preparations / supply & distribution*
  • Risk Assessment
  • Uncertainty

Substances

  • Pharmaceutical Preparations