Corporate social responsibility (CSR) and pricing decisions are proposed for a competitive two-level pharmaceutical supply chain (PSC) comprising two pharma-manufacturers and one pharma-retailer. In the investigated PSC, the pharma-manufacturers competitively invest in the CSR effort to produce a new medicine and sell two substitutable products to the market through the pharma-retailer, deciding on selling prices of manufacturers’ products. The PSC under consideration is modeled in three decision-making structures, i.e., decentralized, centralized, and coordinated models. In the decentralized model, the pricing and CSR decisions are individually obtained using a pharma-manufacturers–Stackelberg game structure. In the centralized model as a benchmark, the best performance of the entire PSC system is achieved. Finally, to encourage all PSC members to agree on the coordination plan, a CSR cost-sharing contract is proposed. Our results reveal that under competitive environment, the proposed CSR cost-sharing contract is able to increase market demand by significantly decreasing selling prices and increasing level of the CSR efforts.
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DOI : 10.1051/ro/2019073
Mots-clés : Pharmaceutical supply chain coordination, corporate social responsibility (CSR), pricing, Stackelberg game, substitutable products, CSR cost-sharing contract
@article{RO_2020__54_5_1515_0,
author = {Johari, Maryam and Hosseini-Motlagh, Seyyed-Mahdi},
title = {Coordination contract for a competitive pharmaceutical supply chain considering corporate social responsibility and pricing decisions},
journal = {RAIRO - Operations Research - Recherche Op\'erationnelle},
pages = {1515--1535},
publisher = {EDP-Sciences},
volume = {54},
number = {5},
year = {2020},
doi = {10.1051/ro/2019073},
mrnumber = {4126318},
language = {en},
url = {http://www.numdam.org/articles/10.1051/ro/2019073/}
}
TY - JOUR AU - Johari, Maryam AU - Hosseini-Motlagh, Seyyed-Mahdi TI - Coordination contract for a competitive pharmaceutical supply chain considering corporate social responsibility and pricing decisions JO - RAIRO - Operations Research - Recherche Opérationnelle PY - 2020 SP - 1515 EP - 1535 VL - 54 IS - 5 PB - EDP-Sciences UR - http://www.numdam.org/articles/10.1051/ro/2019073/ DO - 10.1051/ro/2019073 LA - en ID - RO_2020__54_5_1515_0 ER -
%0 Journal Article %A Johari, Maryam %A Hosseini-Motlagh, Seyyed-Mahdi %T Coordination contract for a competitive pharmaceutical supply chain considering corporate social responsibility and pricing decisions %J RAIRO - Operations Research - Recherche Opérationnelle %D 2020 %P 1515-1535 %V 54 %N 5 %I EDP-Sciences %U http://www.numdam.org/articles/10.1051/ro/2019073/ %R 10.1051/ro/2019073 %G en %F RO_2020__54_5_1515_0
Johari, Maryam; Hosseini-Motlagh, Seyyed-Mahdi. Coordination contract for a competitive pharmaceutical supply chain considering corporate social responsibility and pricing decisions. RAIRO - Operations Research - Recherche Opérationnelle, Tome 54 (2020) no. 5, pp. 1515-1535. doi : 10.1051/ro/2019073. http://www.numdam.org/articles/10.1051/ro/2019073/
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