Modelling and analysis of resilience and reliability in pharmaceutical supply chains

Abstract

The pharmaceutical industry, a massive global sector responsible for pharmaceutical production, development, and marketing, has the problem of developing robust supply chains (SCs). These SCs are becoming more complicated while functioning in a global market, making them more vulnerable to disruptions. To ensure that the healthcare system operates efficiently and meets the growing demand, healthcare organisations must construct resilient and reliable SCs. In this study, we develop a multi-objective optimisation model to address the pharmaceutical supply chain (PSC) problem while simultaneously minimising costs and increasing network reliability. We use three essential SC design indicators: node density, node complexity, and node criticality, as well as a network reliability indicator, to improve SC resilience and reliability. Our research findings indicate that, in the pharmaceutical business, improving SC reliability, reducing SC costs, and managing total SC orders holistically can effectively reduce the risk of SC interruptions.