Optimizing Coordination in the Metformin Supply Chain Using Quantity Discounts and Government Subsidies: A Case Study of Iran's Healthcare System

Authors

https://doi.org/10.22105/ahse.v3i2.59

Abstract

Access to essential medications like metformin in Iran's healthcare system is significantly enhanced by preventing financial distress and ensuring robust cash flow through integrating quantity discounts and government subsidies. This study investigates their role in optimizing supply chain coordination, enhancing profitability, and reducing costs. By examining a two-tier pharmaceutical supply chain involving collaboration among government entities, pharmaceutical companies, and insurers under price controls, the research employs analytical models to assess their impact on stakeholder coordination and overall efficiency. The findings demonstrate that these strategies improve collaboration and optimize total supply chain profits. This study provides actionable insights into leveraging quantity discounts and government subsidies to strengthen coordination in Iran's pharmaceutical supply chain, ultimately ensuring equitable access to high-quality medications. 

Keywords:

Coordination, Pharmaceutical supply chain, Discount, Insurance policies, Government subsidies, Logistics

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Published

2026-06-04

Issue

Vol. 3 No. 2 (2026): Annals of Healthcare Systems Engineering

Section

Articles

How to Cite

Otrodi, F., Khademi Zare, H., Fakhrzad, M. B., & Zare Mehrjerdi, Y. (2026). Optimizing Coordination in the Metformin Supply Chain Using Quantity Discounts and Government Subsidies: A Case Study of Iran’s Healthcare System. Annals of Healthcare Systems Engineering, 3(2), 84-92. https://doi.org/10.22105/ahse.v3i2.59