Coordinating a socially concerned reverse supply chain for pharmaceutical waste management considering government role

Seyyed-Mahdi Hosseini-Motlagh (), Mona Jazinaninejad () and Nazanin Nami ()
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Seyyed-Mahdi Hosseini-Motlagh: Iran University of Science and Technology
Mona Jazinaninejad: Iran University of Science and Technology
Nazanin Nami: Iran University of Science and Technology

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2022, vol. 24, issue 2, No 15, 1852-1877

Abstract: Abstract This paper deals with statutory antibiotic waste management in a two-echelon sustainable pharmaceutical reverse supply chain. Due to detrimental impacts of improper disposal of unwanted/expired medicines on the environment, governments enact legislation regarding pharmaceutical waste management. According to environmental legislation, the manufacturer needs to collect a certain amount of pharmaceutical waste through a reverse channel. Duopolistic distributors are responsible for the collection process and compete on their return quantity, which depends on corporate social responsibility (CSR) efforts through increasing public consciousness of unwanted/expired antibiotics. In this paper, the effects of distributors’ competitive CSR participation on the collected amount of antibiotics and costs of involving members are analytically investigated under decentralized and centralized mathematical models. A new saving-cost sharing contract is then proposed, which is capable of maximizing supply chain’s profitability and coordinating both levels of the reverse chain under competition. The results reveal that companies enjoy a considerable monetary benefit, improved social image, and higher sustainability level using the proposed scheme. Moreover, governmental penalties imposed on the companies also remarkably reduce. Therefore, the proposed model is considerably effective in mitigating the environmental pollution associated with pharmaceutical waste disposal.

Keywords: Sustainability; Pharmaceutical reverse supply chain; Channel coordination; CSR competition; Saving-cost sharing contract (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s10668-021-01511-z

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