Tendering and decision-making: a case on pharmaceutical products
by Sven Dankers; Rui Vieira
World Review of Entrepreneurship, Management and Sustainable Development (WREMSD), Vol. 8, No. 2, 2012

Abstract: In order to contain expenditures for pharmaceuticals, the latest healthcare reforms have focused on decentralising German pharmaceutical market. Health insurance funds are now able to tender the products and subsequently conclude rebate contracts with one or more companies. Considering the enormous bargaining power of health insurance funds, pharmaceutical manufacturers, in particular companies in the generics industry, are facing an immense pressure to decrease their prices in order to win bids in these tenders. This empirical-based research study focus on a decision model that transforms basic information input into a decision tree is presented to offer practical support for decision-making in tendering procedures. The use of decision modelling tools (http://www.treeplan.com) such as objective hierarchies, influence diagrams, decision trees and sensitivity analysis can improve the quality of pricing decisions by forcing decision makers to base their decisions on clear thinking, appropriate assumptions and careful investigation of all alternatives.

Online publication date: Thu, 18-Sep-2014

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the World Review of Entrepreneurship, Management and Sustainable Development (WREMSD):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com