An optimization-simulation approach to the network redesign problem of pharmaceutical wholesalers

• Type: Article in International Scientific Journal
• Date: 2017-02-06

Authors

Sara Martins (Author) Other; Pedro Amorim (Author) FEUP; Gonçalo Figeira (Author) FEUP; Bernardo Almada Lobo (Author) FEUP

Journal

Title: Computers and Industrial Engineering

Vol. 106

Pages: 315-328

ISSN: 0360-8352

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 7 Citations

ISI Web of Science

Scopus - 16 Citations

Associated Projects

Desenho da cadeia de abastecimento da Medlog - Análise global da cadeia de abastecimento da Medlog

Other information

Authenticus ID: P-00M-GGH

DOI: 10.1016/j.cie.2017.01.026

Abstract (EN): The pharmaceutical industry operates in a very competitive and regulated market The increased pressure of pharmacies to order fewer products and to receive them more frequently is overcharging the pharmaceutical's distribution network Furthermore, the tight margins and the continuous growth of generic drugs consumption are pressing wholesalers to optimize their supply chains. In order to survive, wholesalers are rethinking their strategies to increase competitiveness. This paper proposes an optimization-simulation approach to address the wholesalers network redesign problem, trading off the operational costs and customer service level. Firstly, at a strategic-tactical level, the supply chain network redesign decisions are optimized via a mixed integer programming model. Here, the number, location, function and capacity of the warehouses, the allocation of customers to the warehouses and the capacity and function of the distribution channels are defined. Secondly, at an operation level, the solution found is evaluated by means of a discrete event simulation model to assess the impact of the redesign in the wholesaler's daily activities. Computational results on a pharmaceutical wholesaler case-study are discussed and the benefits of this solution approach exposed.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 14