The Unexpected Impact of Information-Sharing on US Pharmaceutical Supply-Chains

Leroy B. Schwarz and Hui Zhao

Purdue University Economics Working Papers from Purdue University, Department of Economics

Abstract: This paper examines the introduction of information-sharing into the supply chains for pharmaceutical products in the United States. This introduction was unusual for several reasons. First, it was catalyzed from outside the industry, by a Securities and Exchange Commission (SEC) investigation into improper financial reporting by a single manufacturer. Second, it was initiated by pharmaceutical manufacturers in order to keep distributor inventories low. Third, although its effect on pharmaceutical distributors has been profound, evidence indicates that information-sharing has had no impact on pharmaceutical manufacturers' own inventorymanagement practices.

Pages: 27 pages
Date: 2010-07
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Persistent link: https://EconPapers.repec.org/RePEc:pur:prukra:1247

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