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