Normal view MARC view

Supply chain coordination and influenza vaccination

Author: Chick, Stephen ; Mamani, Hamed ; Simchi-Levi, DavidINSEAD Area: Technology and Operations Management Series: Working Paper ; 2006/38/TOM/HMI Publisher: Fontainebleau : INSEAD, 2006.Language: EnglishDescription: 52 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: Annual influenza outbreaks incur great expenses in both human and monetary terms, and billions of dollars are being allocated for influenza pandemic preparedness in an attempt to avert even greater potential losses. Vaccination is a primary weapon for fighting influenza outbreaks. The influenza vaccine supply chain has characteristics that resemble the news vendor problem, but possesses several characteristics that distinguish it from typical supply chains. Differences include a nonlinear value of sales (caused by the nonlinear health benefits of vaccination due to infection dynamics) and vaccine production yield issues. We show that production risks, taken currently by the vaccine manufacturer, lead to an insufficient supply of vaccine. Unfortunately, several supply contracts that coordinate buyer (governmental public health service) and supplier (vaccine manufacturer) incentives in many other industrial supply chains can not fully coordinate the influenza vaccine supply chain. We design a variant of the cost sharing contract and show that it provides incentives to both parties so that the supply chain achieves global optimization and hence improves the supply of vaccine.
Tags: No tags from this library for this title. Log in to add tags.
Item type Current location Collection Call number Status Date due Barcode Item holds
INSEAD Working Paper Digital Library
PDF Available BC007626
Total holds: 0

Annual influenza outbreaks incur great expenses in both human and monetary terms, and billions of dollars are being allocated for influenza pandemic preparedness in an attempt to avert even greater potential losses. Vaccination is a primary weapon for fighting influenza outbreaks. The influenza vaccine supply chain has characteristics that resemble the news vendor problem, but possesses several characteristics that distinguish it from typical supply chains. Differences include a nonlinear value of sales (caused by the nonlinear health benefits of vaccination due to infection dynamics) and vaccine production yield issues. We show that production risks, taken currently by the vaccine manufacturer, lead to an insufficient supply of vaccine. Unfortunately, several supply contracts that coordinate buyer (governmental public health service) and supplier (vaccine manufacturer) incentives in many other industrial supply chains can not fully coordinate the influenza vaccine supply chain. We design a variant of the cost sharing contract and show that it provides incentives to both parties so that the supply chain achieves global optimization and hence improves the supply of vaccine.

Digitized

There are no comments for this item.

Log in to your account to post a comment.
Koha 18.11 - INSEAD Catalogue
Home | Contact Us | What's Koha?