Implementing Green Supply Chain Management for Online Pharmacies through a VADD Inventory Model

Abstract

Online pharmacies are an important part of the modern healthcare system. They interact with customers through well-designed web interfaces to deliver the healthcare customers need. In addition to well-designed web interfaces, online pharmacies rely on an effective supply chain system to provide medical supplies and services, and especially effective inventory management for supply systems. As green supply chain management (GSCM) becomes increasingly considered by countries, how to develop a sustainable inventory model that takes into account the revenue growth of an online pharmacy while preventing waste and reducing energy costs has become very important. In line with this trend, the study develops a sustainable inventory model that focuses on both economic aspect (profit) and environmental aspect (losses from excessive inventory) within a framework of a single period multi-product inventory model. Specifically, the sustainable inventory model applies the visual-attention-dependent demand (VADD) rate to characterize customer demand in an online trading environment, thereby seeking a profitable marketing strategy and reducing losses due to excessive inventory. Since the complexity of model optimization will drastically increase due to the inclusion of many products in the problem, a Genetic Algorithm (GA) based solution procedure is proposed to increase the feasibility of the proposed model in solving real problems. The sustainable inventory model and the solution procedure are illustrated, compared, and discussed with an online pharmacy example. Additionally, a sensitivity analysis is formulated to study the influence of model parameters on the model solution, the loss of unsold inventory that results in a waste of resources and energy, and the profit of online pharmacies.

Non-prescription sale of antibiotics and service quality in community pharmacies in Guangzhou, China: A simulated client method

“…Additionally, a greater proportion of chain pharmacies provide online service. Online pharmacies have enormous potential in the future [ 34 ]. The global market of online pharmacies was approximately USD 42.3 billion in 2018; this is estimated to expand to USD 107.5 billion in 2025 [ 35 ].…”

Sustainable Inventory Management in Supply Chains: Trends and Further Research

“…Here from the circular economy perspective, extending the options for value retention from the well-known reduce, reuse, and recycle policies to the 10R policies is suggested [46] by including the criteria proposed in this article. The most studied concept is "reduce" (R6) because it appears in 22 of the reviewed articles (see Figure 3) and is described to minimize GHG emissions [1,5,18,[20][21][22][23][24][42][43][44]47] and to reduce waste production rather than disposing of created waste [3,4,[25][26][27][28][29][30]45]. Ahmadini et al [41] incorporate both GHG emissions and waste disposal minimization.…”

“…Of all the available model approaches, mathematical programming models are the most widely used to solve the aforementioned problems (66.67%). Figure 4 particularly depicts: mixed-integer linear programming with six single objective cases [16,17,20,24,26,28]; multi-objective models [21,42]; multi-objective with fuzzy goal programming [39,43]; fuzzy multi-objective linear programming [14]; a multi-objective fractional programming model by Ahmadini et al [41]; linear programming with one case [40]; sustainable EOQ developed by Battini et al [3]; a constrained programming model overcome by Zhang et al [25]; a stochastic optimization problem [33]; a Markov decision process [37]; mixed-integer nonlinear programming [34]; two integer programming models [4,29]. Simulation models are also widespread (33.33%).…”

“…Recent research has highlighted the need to include factors other than traditional inventory models to design sustainable inventory systems by integrating the factors affecting the environmental impact into the traditional economic order quantity (EOQ) model [3]. It is crucial to develop a SIM model that takes into account income increase and waste prevention and reduces energy costs [4]. Decisions on lead times, replenishment quantities, and storage facilities influence emissions and costs [5].…”

Online Food Shopping: A Conceptual Analysis for Research Propositions

“…One of the primary consideration food consumers take into account when making a purchase decision online involves packaging and delivery. According to Chen et al (2019), the modern consumer is more interested in food products that utilize sustainable packaging and delivery systems. Hu et al (2019) add that most customers today are more focused on recyclable packaging systems.…”