Identifying and explaining factors affecting cost engineering of pharmaceutical distribution companies
Identifying and explaining factors affecting cost engineering of pharmaceutical distribution companies
Subject Areas : Management Accounting
Hamid Torkashvand 1 , Ghodratolah Talebnia 2 * , هاشم نیکومرام 3
1 - PhD student, Accounting Department, Science and Research branch, Islamic Azad University, Tehran,
2 - Professor, Accounting Department, Science and Research branch, Islamic Azad University, Tehran, Iran (Corresponding Author)
3 - Professor, Accounting Department, Science and Research branch, Islamic Azad University, Tehran, Iran
Keywords: Cost engineering, Drug Distribution , Fuzzy AHP,
Abstract :
The field of medicine and treatment is considered a strategic issue in the foundation and stability of a country, and its distribution chain is an influential factor in the quality and price of pharmaceutical products that reach the hands of end consumers and members of society.
This research is trying to identify the factors affecting the cost engineering of drug distribution companies through the fuzzy analysis hierarchy method and according to the opinions of experts who are experts with experience working in the Iranian drug distribution industry, and then determine and rank the relative importance of each of them.
By reviewing the relevant literature and related research backgrounds, the factors affecting the cost engineering of drug distribution companies were identified in five groups: storage and maintenance costs, transportation costs, technology costs, human resources costs, and costs of communication with business partners.
Based on the opinions of industry experts, of the five identified factors, the factors of "storage and maintenance costs" and "cost of communication with business partners (especially suppliers and customers)" were identified as the most important factors affecting the cost engineering of drug distribution companies.
It is believed that organizations can manage their inventory appropriately by using modern and appropriate methods to accurately predict market supply and demand as well as consumer behavior, thereby reducing their storage costs to an acceptable level. Also, by using routing methods and intelligent distribution systems, transportation costs can be greatly improved and a more efficient drug distribution chain can be achieved in the country.
- عابدینی, ایرانی, یزدانی. (2019). شناسایی و اولویت بندی عوامل حیاتی موفقیت در زنجیره‌ی تامین و توزیع دارو با استفاده از تکنیک دیمتل. پیاورد سلامت, 13(1), 45-59.
- وزارت صنعت، معدن و تجارت (2018)، گزارش ادواری محصولات منتخب: داروی انسانی .
- لطفی جلال آبادی, مصطفی, حسینی, سید جمال. (1401). مدیریت هزینه نگهداری و تعمیر در شرکت های هواپیمایی. نشریه علمی پژوهشی مهندسی هوانوردی, 24(1), 97-110.
- شجاعی بهمن, دشتی ناصرآبادی حیدر, طاهری امیری محمدجواد. (1400). ارائه یک مدل بهینه‌سازی چند هدفه زمان-هزینه-کیفیت برای مسئله برنامه‌ریزی پروژه و تخصیص نیروی انسانی با در نظر گرفتن شایستگی. مهندسی سازه و ساخت, 8(12), 247-269.
- Ab Talib, M. S., Abdul Hamid, A. B., & Thoo, A. C. (2015). Critical success factors of supply chain management: a literature survey and Pareto analysis. EuroMed Journal of Business, 10(2), 234-263.
- Bvuchete, M., Grobbelaar, S. S., & Van Eeden, J. (2020). Best practices for demand-driven supply chain management in public healthcare sector: a systematic literature review. South African Journal of Industrial Engineering, 31(2), 11-27.
- Chang, D. Y. (1996). Applications of the extent analysis method on fuzzy AHP. European journal of operational research, 95(3), 649-655.
- Organisation, W. H. (2008). Measuring medicine prices, availability, affordability and price components. Retrieved from
. - Lelei, D. (2021). Strengthening pharmaceutical distribution chain in Kenya: a case study of the Kenya Medical Supplies Authority and Dagoretti Sub-County Hospital (Doctoral dissertation, Strathmore University).
- Liao, L., Yang, C., & Quan, L. (2023). Construction supply chain management: A systematic literature review and future development. Journal of Cleaner Production, 382, 135230.
- Ongarora, D., Karumbi, J., Minnaard, W., Abuga, K., Okungu, V., & Kibwage, I. (2019). Medicine prices, availability, and affordability in private health facilities in low-income settlements in Nairobi County, Kenya. Pharmacy, 7(2), 40.
- Rushton, A., Croucher, P., & Baker, P. (2022). The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers.
- WHO. (2010a). Monitoring the building blocks of health systems: a handbook of indicators and their measurement strategies: World Health Organization.
- Ministry of Industry, Mine and Trade. (2018). Periodic Report of Selected products: Pharmaceutical Commodity
. - Janatyan, N., Zandieh, M., Alem Tabriz, A., & Rabieh, M. (2019). Optimizing Sustainable Pharmaceutical Distribution Network Model with Evolutionary Multi-objective Algorithms (Case Study: Darupakhsh Company). Production and Operations Management, 10(1), 133-153.
- Sabbaghi, A., & Sabbaghi, N. (2004). Global supply-chain strategy and global competitiveness. International Business & Economics Research Journal (IBER), 3(7).
- Sepahi, T., Shahbazi, M., & Shafiei Roudposhti, M. (2020). Drug Distribution System in Iran: A Multi Method Study of Defects and Solutions. Depiction of Health, 11(4), 324-343.
- Kanyangi, F. (2018). Distribution Strategies and Performance of Kenya Medical Supplies Authority (Doctoral dissertation, University of Nairobi).
- WPU-SOM-PG, M. I. T. (2020). Role Of Technology In Optimizing Pharmaceutical Distribution.
- Prasad, P., Narayanasamy, S., Paul, S., Chattopadhyay, S., & Saravanan, P. (2019). Review of literature on working capital management and future research agenda. Journal of Economic Surveys, 33(3), 827-861.
- Karapetrovic, S., & Rosenbloom, E. S. (1999). A quality control approach to consistency paradoxes in AHP. European Journal of Operational Research, 119(3), 704-718.
- Kahraman, C. (Ed.). (2008). Fuzzy multi-criteria decision making: theory and applications with recent developments (Vol. 16). Springer Science & Business Media.
- Khoshand, A., Rahimi, K., Ehteshami, M., & Gharaei, S. (2019). Fuzzy AHP approach for prioritizing electronic waste management options: a case study of Tehran, Iran. Environmental science and pollution research, 26, 9649-9660.
- Van Laarhoven, P. J., & Pedrycz, W. (1983). A fuzzy extension of Saaty's priority theory. Fuzzy sets and Systems, 11(1-3), 229-241.
- Mohammadzadeh, M., Rahimi, F., Rahimi, F., Aarabi, S. M., & Salamzadeh, J. (2013). The effect of capital structure on the profitability of pharmaceutical companies the case of Iran. Iranian journal of pharmaceutical research: IJPR, 12(3), 573.