Proceedings of the International Academic Conference on Frontiers in Social Sciences and Management Innovation (IAFSM 2019)

Study on Decision-Making of Reverse Recycling Medicine Quantity Under Manufacturer’s Advertising Effort

Authors
Yue Tan, Ming Fang
Corresponding Author
Yue Tan
Available Online 17 February 2020.
DOI
10.2991/assehr.k.200207.027How to use a DOI?
Keywords
household unwanted medicines, advertising efforts, government subsidies, the newsvendor problem, optimal recycling volume
Abstract

In recent years, the problem of medicine contamination has attracted more and more attention, especially the collection and disposal of unwanted medicines (UMs) in families has become an increasingly important research topic. This paper mainly studies the medicine recycling decision-making to maximize the profits of manufacturers. Based on the newsvendor problem and the pharmaceutical manufacturer as the research object, this study assumes a reverse recovery system including advertisement, incentive mechanism of integral exchange and government subsidies, and explores the relationship between medicine recovery and the three. Finally, according to the actual situation, it is proposed that increasing manufacturer’s advertising investment cost and government subsidy appropriately and keeping a small conversion ratio of UMs are beneficial to improving manufacturer’s expected earnings. Cooperation between manufacturers and retailers will also be considered in the future.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the International Academic Conference on Frontiers in Social Sciences and Management Innovation (IAFSM 2019)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
17 February 2020
ISBN
10.2991/assehr.k.200207.027
ISSN
2352-5398
DOI
10.2991/assehr.k.200207.027How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Yue Tan
AU  - Ming Fang
PY  - 2020
DA  - 2020/02/17
TI  - Study on Decision-Making of Reverse Recycling Medicine Quantity Under Manufacturer’s Advertising Effort
BT  - Proceedings of the International Academic Conference on Frontiers in Social Sciences and Management Innovation (IAFSM 2019)
PB  - Atlantis Press
SP  - 162
EP  - 167
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.200207.027
DO  - 10.2991/assehr.k.200207.027
ID  - Tan2020
ER  -