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Implementing Green Supply Chain Management for Online Pharmacies through a VADD Inventory Model
Yan-Kwang Chen1, Fei-Rung Chiu2, Yu-Cheng Chang3
1Department of Distribution Management, National Taichung University of Science and Technology, Taichung 40401, Taiwan.
This study introduces a sustainable inventory model for online pharmacies, balancing profit with reduced waste and energy costs. A Genetic Algorithm optimizes this model for multi-product environments, enhancing profitability and resource efficiency.
Area of Science:
- Operations Research
- Supply Chain Management
- E-commerce
Background:
- Online pharmacies are integral to modern healthcare, requiring efficient inventory management.
- Green Supply Chain Management (GSCM) is increasingly vital for sustainability.
- Balancing economic goals with environmental impact is crucial for online pharmacies.
Purpose of the Study:
- To develop a sustainable inventory model for online pharmacies.
- To integrate economic (profit) and environmental (waste reduction) factors.
- To optimize inventory for revenue growth while minimizing losses and energy costs.
Main Methods:
- A single-period, multi-product inventory model was developed.
- Visual-Attention-Dependent Demand (VADD) rate was used to model customer demand.
- A Genetic Algorithm (GA) was employed for model optimization.
Main Results:
- The model successfully balances profit and environmental considerations.
- The Genetic Algorithm provides a feasible solution for complex, multi-product scenarios.
- Sensitivity analysis revealed parameter impacts on profit, waste, and energy loss.
Conclusions:
- The proposed sustainable inventory model enhances online pharmacy profitability and resource efficiency.
- The VADD rate effectively captures online demand dynamics.
- The GA-based approach offers a practical solution for sustainable inventory management in e-pharmacies.
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