A FUZZY BI-LEVEL PROJECT PORTFOLIO PLANNING CONSIDERING THE DECENTRALIZED STRUCTURE OF PHARMACY HOLDINGS

Authors

  • Faraz Salehi Department of Industrial Engineering and Management Systems, Amirkabir University of Technology.
  • Seyyed Mohammad Javad Mirzapour Al-e-Hashem Department of Industrial Engineering and Management Systems, Amirkabir University of Technology. https://orcid.org/0000-0002-3235-2698
  • Seyyed Mohammad Moattar Husseini Department of Industrial Engineering and Management Systems, Amirkabir University of Technology.
  • Seyyed Hassan Ghodsypour Department of Industrial Engineering and Management Systems, Amirkabir University of Technology.

DOI:

https://doi.org/10.23055/ijietap.2022.29.6.8383

Keywords:

R&D project portfolio, new product development, budget allocation, selection-scheduling, pharmaceutical holding company, bi-level optimization model

Abstract

Research and development (R&D) in the pharmaceutical industry requires proper and optimal planning and management because of its critical role in public health. Taking into account a decentralized decision-making structure in R&D management in pharmaceutical holding companies, this study introduces a new fuzzy bi-level multi-follower mathematical optimization model to address budget allocation and project portfolio planning. Specifically, the holding company's head office, as the leader, and the subsidiaries, as followers, make strategic and operational decisions concerning important issues such as budget allocation and portfolio selection and scheduling. Since the lower level represents multiple mixed-integer programming problems with uncooperative reference relationships between followers, solving the resulting bi-level model is challenging. Therefore, our model is based on an effective hybrid solution methodology, which converts the bi-level model, including multiple followers, into a single-level model. In order to validate the proposed model, we conducted a case study and analyzed the strategies of each actor within the conglomerate. Based on the results of experiments, it is evident that a strategy that focuses on one level of operations profoundly affects decisions at the other level.

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Published

2022-12-13

How to Cite

Salehi, F., Mirzapour Al-e-Hashem, S. M. J., Moattar Husseini, S. M., & Ghodsypour, S. H. (2022). A FUZZY BI-LEVEL PROJECT PORTFOLIO PLANNING CONSIDERING THE DECENTRALIZED STRUCTURE OF PHARMACY HOLDINGS. International Journal of Industrial Engineering: Theory, Applications and Practice, 29(6). https://doi.org/10.23055/ijietap.2022.29.6.8383

Issue

Vol. 29 No. 6 (2022)

Section

Service Engineering (Healthcare, etc.)

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