Production Planning for Pharmaceutical Companies Under Non-Compliance Risk

This paper addresses a production planning setting for pharmaceutical companies under the risk of failing quality inspections that are undertaken by the regulatory authorities to ensure good manufacturing practices. A staged decision model is proposed where the regulatory authority is considered an adversary with limited inspection budget, and the chosen inspections themselves have uncertain outcomes. Compact formulations for the expected revenue and the worst-case revenue as risk measures are given as well as a proof that the simplest version of the production planning problem under uncertainty is NP-complete. Some computational results are given to demonstrate the performance of the different formulations.

Authors and Affiliations

1. IBM Research – Zurich, 8803, Rueschlikon, Switzerland

   Marco Laumanns & Eleni Pratsini

2. Cork Constraint Computation Centre, University College, Cork, Ireland

   Steven Prestwich

3. Faculty of Mathematics and Informatics, University of Bucharest, Bucharest, Romania

   Catalin-Stefan Tiseanu

Corresponding author

Correspondence to Marco Laumanns .

Editors and Affiliations

1. , Fakultät für Betriebswirtschaft, Universität der Bundeswehr München, Werner-Heisenberg-Weg 39, Neubiberg, 85577, Bayern, Germany

   Bo Hu

2. , Fakultät für Wirtschafts- und Organisati, Universität der Bundeswehr München, Werner-Heisenberg-Weg 39, Neubiberg, 85577, Bayern, Germany

   Karl Morasch

3. Fakultät für Informatik, Universität der Bundeswehr München, Werner-Heisenberg-Weg 39, Neubiberg, 85577, Germany

   Stefan Pickl

4. , Fakultät für Informatik, Universität der Bundeswehr München, Werner-Heisenberg-Weg 39, Neubiberg, 85577, Bayern, Germany

   Markus Siegle

Reprints and permissions

© 2011 Springer-Verlag Berlin Heidelberg

Policies and ethics