Dynamics of the effect of sustainable distribution network and production quality on medication production sale (Case study: Amoxicillin, Farabi Company)

اقتصاد و توسعه منطقه ای

Articles in Press, Accepted Manuscript, Available Online from 09 April 2025

Document Type: Original Article

DOI: 10.22067/erd.2025.89165.1246

Authors

Atena Salmanpour Ahmadi,¹; MOHAMMAD REZA ARMANMEHR^{* 2}; Hosseini Seyed Mohammad Hassan³; saeed rasekhi⁴

¹MA of Economic Systems Planning, Department of Industrial Engineering and Management, Shahrood University of Technology, Shahrood, Iran

²Assistant Professor of Economics, Shahrood University of Technology

³Associate professor, Department of Industrial Engineering and Management, Shahrood University of Technology, Shahrood, Iran

⁴Professor in Economics, Department of Energy Economics, Faculty of Administrative and Economics Sciences, University of Mazandaran, Iran

Abstract

The product life cycle indicates the period of time from the introduction of the product to its decline, and its identification is important for every company. Because by knowing this cycle, the company, while helping the growth of production and sales of the product, can prevent the rapid decline of the product. the main goal of the current research is dynamic modeling of pharmaceutical company competitiveness in the framework of the life cycle. For this purpose, it uses the combined approach of system dynamics and econometrics, and two important factors in the competitiveness of medication production, i.e. sustainable distribution network and production quality, have been investigated. Considering the high consumption of antibiotics in Iran, in this research, Farabi company's amoxicillin medication was selected and simulation was done for the period of 2002-2029. The results of this research show: First, the level of consumer access, the geographical coverage of the medication, and the quality of the medication have a positive effect on the life cycle of the product. Secondly, the effect of these factors is greater in the maturity stage as well as in the decline stage of the product. Considering that it seems that amoxicillin has reached its decline stage, it is suggested to Farabi company to review the life cycle of the drug by adopting policies to improve the quality of distribution . And to keep the quality of drug production, product life and sales at a favorable level.

Keywords

Product life cycle; System dynamics; Pharmaceutical products; Marketing mix; Amoxicillin

References