A bi-objective optimization model to design a cold and green network of the multi-product, multi-level and multi-period pharmaceutical supply chain, taking into account the time value of money and imports of pharmaceutical products

Introduction: Due to the specific characteristics of pharmaceutical products such as the specific half-life, the need to observe temperature controls; maintaining the safety of medicines at all stages, complying with international regulations and standards and providing the best level of service to consumers; The pharmaceutical supply chain is very important. Today, in developing countries, the chalenges that exist in the production, storage, import and distribution of pharmaceutical products have reduced the sustainability and increased costs of the pharmaceutical supply and distribution chain network. Sustainability, which seeks to meet today's economic and social needs without jeopardizing the environment and the needs of future generations, is defined as a concept consisting of three economic, social and ecological dimensions.
Methods: This study by developing an integer bi-objective optimization model; while integrating import factors, time value of money (TVM) and temperature control requirements; It guarantees operational efficiency and economic and environmental sustainability of the pharmaceutical network. In other words, with synergy between cold chain logistics and green principles, while maintaining the quality and integrity of temperature-sensitive pharmaceutical products, it seeks to minimize costs and environmental effects. Also, taking into account the economic consequences of TVM, the inherent challenges and complexities of the international import of pharmaceutical products, it helps to make more cost-effective decisions and more accurate financial feasibility over time. In fact, the present study aims to achieve a harmonious balance between operational excellence, economic viability and sustainable practices, and helps the managers and stakeholders of this industry in navigating the multifaceted challenges of global drug distribution.
Results and discussion: After solving the model with the help of GAMS and the comprehensive benchmarking method, it has been determined by using numerical examples that (a) pharmaceutical import plays the biggest role in creating costs for its cold and green network. In this regard, it is important to pay attention to the fact that although domestically produced drugs have a lower price than the imported ones, their quality and effect on treatment is also much lower, and this issue makes imported pharmaceutical products more popular among people. In addition, since even the production of pharmaceutical products is dependent on the import of raw materials and legal requirements such as price restrictions are an obstacle for producers, it seems that revision of existing requirements and regulations and Such improvement of production technologies in the long term can reduce the costs of the chain to a great extent, although it may bring costs to the network in the short term; (b) Compliance with temperature controls, which is inevitable during the operation of a strategic product chain such as medicine, will definitely lead to an increase in its costs and a warming of the earth, and it is necessary for the decision-makers of this industry, in short spend enough time and take appropriate measures to improve maintenance technologies and continuously monitor the health and quality of refrigerated items in order to enjoy more benefits in the long term; (c) Transportation, while constituting the smallest part of the costs, is considered the most effective operation of the network in warming the earth. This issue, rather than being affected by the quality, health and capacity of vehicles, is a result of the lack of proper management of supply and demand and improper management of inventory; (d) The time value of money and issues such as inflation, exchange rate fluctuations, and sanctions, although in the short-term and medium-term it will cost more for the chain, but it will not play a decisive role in the long term.
Conclusions: In fact, the above two-objective model shows that the improvement of economic and environmental performance in the long term and the realization of sustainable management of the pharmaceutical supply chain can be achieved by revising the legal requirements and production strategies, correct supply and demand management, and proper inventory management.