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A New Distribution Strategy for Psychotropic and Cold Chain Products in a Pharmaceutical Company

Abstract:

One of the major interests in the retail industry of pharmaceutical products is related to the proper handling and distribution of products. In fact, one of the most important decisions in this industry involves the proper distribution of goods, such that it provides the right amount of the products, at the right pharmacy, at minimum cost and safety conditions according to the type of the products. Psychotropic and Cold‐chain products are special products in this industry because of their high logistics cost and strict requirements and conditions for distribution until they reach the customer at a pharmacy. Retail chains in this industry have experimented a notable increase in the number of pharmacies within a region and it is necessary to have a distribution strategy with a proper methodology that meets all the distribution requirements for special products to reduce their distribution costs. In this study, a methodology based on a mathematical model that schedules the supply of pharmaceutical products is presented, focusing on the distribution of Psychotropic and Cold chain products to different pharmacies. The implementation of the mathematical model considers two stages. Stage 1 is the first strategy implementation, generating the first distribution schedule, and stage 2 uses these results of stage 1 to schedule overtime periodically. This model has been implemented in a real distribution company, and the results adequately respond to the company’s needs.