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The emerging medical alliance in some countries enables the joint optimization for its members through timely necessary information exchanging and sharing. This paper investigates a joint decision-making optimization problem between a focal hospital and multiple pharmaceutical manufacturers in a medical alliance, to optimize both parties' objectives from the supply chain management perspective. Specifically, the hospital makes the decision on the medicine procurement from multiple candidate pharmaceutical manufacturers to minimize its total procurement cost, and each chosen pharmaceutical manufacturer determines the production plan for the different types of medicine procured by the hospital to maximize its total profit. Given that the hospital and pharmaceutical manufacturers make decisions under their objective functions and constraints while the decisions affect each other's objective mutually, a bi-level programming mathematical model is established, with the hospital acting as the leader and the pharmaceutical manufacturers as multiple independent followers. We propose an improved hierarchical loop framework, including the upper solving, the lower solving, and the improvement module. Specifically, we embed the Variable Neighborhood Search (VNS) algorithm in the lower-solving module and apply a set of heuristic rules in the improvement module. To test the performance of the proposed algorithm, we replace the VNS algorithm in the lower solving module with PSO, GA, and SA, and compare their performance in small, medium, and large-scale instances. Besides, we also validate the effectiveness of the improvement module by comparing the performance of the algorithm with and without the module. The computational experiments prove the effectiveness and efficiency of the proposed approach.
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JOURNAL OF GLOBAL OPTIMIZATION
ISSN: 0925-5001
Year: 2025
1 . 3 0 0
JCR@2023
CAS Journal Grade:3
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ESI Highly Cited Papers on the List: 0 Unfold All
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30 Days PV: 0
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