The Limit Price Strategy Analysis of Integrated Medicine Supply Chain Based on Government Regulation

Abstract:

Considering the integrated medicine supply chain, and introducing the government limit pricing and subsidy mechanism, the pricing strategy of integrated medicine supply chain was studied in this paper. And the optimal strategy in the face of market fluctuations caused by unconventional emergencies based on government regulation was given. The study shows that, under different subsidy levels, the optimal production volume, retail price and profit of the supply chain are related to production cost, market size, government regulation and government subsidy; governments limit price regulation on medicines is welfare for both consumers and retailers, and it is favorable for medicine supply chains normal development.

• Periodical: Applied Mechanics and Materials (Volumes 397-400)
• Pages: 2553-2556
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.397-400.2553
• Online since: September 2013
• Authors: Liang Shen, Yu Yan Wang
• Keywords: Government Regulation, Integrated Medicine Supply Chain, Limit Price Strategy

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