Pricing And Coordination Of Generic Drugs Supply Chain

Generic drugs,as the fundamental part of national basic medical Insurance system,occupy the important market share of pharmaceutical chemical.With the increasing and aging of population,acceleration of urbanization and perfection of medical insurance system,the demand and market ratio of Generic drugs will constantly increase.With the deepening of the new health care reform,the market competition is becoming fiercer.The actual market price of Generic drugs depends on the competition environment.Therefore,the reform of supply chain of Generic drugs in the current chaotic and complex national markets is urgently needed.From the prospective of supplier chain,cooperation among our national Generic drugs suppliers are relatively weak and most of the suppliers only focus their self-interest and profit maximization.The coordination and profit allocation mechanism among Generic drugs supply chain members are still not established.In this paper,it presumes the cancellation the government pricing of drugs as the background,and sets Generic drugs supply chain pricing and coordination as the research object.First,it reviews researches and journals of the supply chain coordination of supply chain and demonstrates the common method of supply chain coordination and profit allocation.Then it makes a qualitative analysis of Generic drugs supply chain.Finally,the paper establishes two generic drug supply chain Game model for different sales terminals.Research states that under the social welfare maximization decision,profits of pharmaceutical production enterprises will increase more significantly,thus more money will be invested into research and development of new drugs when medical institutions are sales terminals;Under cooperative decision,order quantity and overall profit index of Generic drugs supply chain will increase more than those under independent decision,and meanwhile the retail price of Generic drugs will decline thus enhance the beneficiary of patients when the retail pharmacies are sales terminals.The coordination and profit allocation mechanism among Generic drugs supply chain members are still not established.In addition,the research points out that a reasonable profit distribution mechanism is the necessary precondition for the cooperation of Generic drug supply chain.