Research On Medicine Supply Chain Inventory Control Model Based On System Dynamics

With the high-speed development of pharmaceutical enterprises and the medicine logistics,the pharmaceutical industry,of which medicine management is an important part,pays more attention to supply chain management.Inventory management,as a matter of supply chain management,plays a crucial role in the sustainable development of the pharmaceutical companies.Medicine quality is related to public health and social stability,which is a great livelihood issues.The inventory costs should be reduced and the services quality be improved under the precondition of medicine safety.In this thesis,different inventory strategies of the pharmaceutical companies have been analyzed.The optimization of inventory strategies not only can reduce pharmaceutical inventory costs,but also improve pharmaceutical supply chain efficiency and service levels,which also provides a certain reference value for the medicine industry.Firstly,this paper studied the theory of pharmaceutical supply chain and medicine inventory and analyzed the structure of pharmaceutical supply chain.Pharmaceutical manufacturers,pharmaceutical logistics companies,pharmaceutical companies,hospitals and pharmacies,patients,as six main parts of the medicine supply chain have been discussed separately in this paper,and the pharmaceutical supply chain organization tasks and processes also have been presented.The paper also accountted the steps of the system dynamic solve problem,causality diagram and system dynamic model.What is more,advantages and application of the Vensim PLE have been described.Secondly,the paper have respectively analyzed the characteristics of the supply chain inventory management from four types,including Traditional model,Vendor Managed Inventory,Joint Managed Inventory,Collaborative Planning,Forecasting and Replenishment.Causality diagram and system dynamic models of four types models have been established in Vensim PLE.The paper studied the mathematical formula of the system dynamic models and tested the system dynamic models in extreme conditions.Lastly,the paper compared inventory,market satisfaction rate and deterioration rate of the four models in step function,sine and pulse function,and have obtained a conclusion that CPFR(Collaborative Planning,Forecasting and Replenishment)model is more ideal inventory model.Besides,traditional model and CPFR model have been established based on analysis of pharmaceutical company A.Through the analysis of actual market demand,the paper compared two models and proposed the revision of the CPFR model.To some extent,this study could provide reference comments for the pharmaceutical companies to reduce the costs of medicine inventory and improve the efficiency of the pharmaceutical supply chain,and is also capable to meet people requirements about the medical service-level.