Joint Ordering Optimization for a Two-Echelon Pharmaceutical Supply Chain Considering Shelf Life and a Transshipment Mechanism
Pharmaceutical supply chains face high inventory and stockout risks because of short product shelf lives and volatile demand. To enhance coordination efficiency and reduce drug waste, this study examines a two-echelon supply chain comprising a manufacturer and multiple medical institutions. We built a joint ordering and transshipment optimization model that simultaneously incorporates shelf-life constraints, the first-in–first-out (FIFO) policy, inventory capacity limits, and peer-level transshipment. Under deterministic and stochastic demand, we solved the model using Bayesian optimization and Monte Carlo simulation. The results show that moderate inventory transshipment effectively mitigates risk from demand uncertainty and increases total supply-chain profit; under stochastic demand, the optimal strategy relies more heavily on coordinated transshipment to reduce excess inventory and near-expiry waste.
Authors
- Tingting Wang (ORCID: https://orcid.org/0000-0002-7605-4860)
- Kaiye Gao (ORCID: https://orcid.org/0000-0001-9711-3084)
- Ruizhi Ouyang
- Hongjie Lan
- Shiju Li
- Li Guo
Institutions
- Hong Kong Polytechnic University (HK)
- Chinese Academy of Sciences (CN)
- Beijing Jiaotong University (CN)
- Beijing Forestry University (CN)
- Academy of Mathematics and Systems Science (CN)
- Beijing Institute of Graphic Communication (CN)
- University of Science and Technology Beijing (CN)
Publication Details
- Journal
- Mathematics
- Published
- 2026-01-14
- DOI
- https://doi.org/10.3390/math14020302
- Primary Topic
- Supply Chain and Inventory Management
- Type
- article
- Field-Weighted Citation Impact
- 0.00