Reduce Inventory Write Off in Humanitarian Pharmaceutical Supply Chain by Implementing a Cooperative Decision Making

The illegal redistribution of the expired drugs constitutes a potential risk to damage the global health and the environment. It causes also a deep financial loss for the humanitarian pharmaceutical ecosystem. However, if they are returned to the Humanitarian Supply chain network before it’s reached the minimum accepted shelf life for the redistribution, they can be reconditioned and redirected to other countries in deep need. We are proposing a new model that’s gives more responsibility to the pharmaceutical companies & the global health agencies to keep control on excess medications at recipient countries. It consists to motivate the humanitarian logistic provider to facilitate leftover returns and improve the sustainability of the pharmaceutical reverse supply chain. We have investigated the game theory through studying the mathematical models of interactions among decision-makers. We have compared the impact of the “non-cooperative decision-making model” and “cooperative decision-making model” on humanitarian supply chain performance. A novel composition of “incentive & bonus allocation” and “Tax & penalties sharing agreement” is proposed to reach the expected level of synergy, optimize the whole humanitarian pharma supply chain profits and better serve vulnerable patients