Modeling of Complex Diversification for Centralized Pharmacy Network

EasyChair Preprint 3411

Abstract

The risk management of a centralized pharmacy network identifies the research object. The paper proposes a strategy of complex diversification for the pharmacy network. By constructing portfolio models for complex diversification and solving relevant multicriteria problems, multiple pareto-optimal portfolios have been found for successive risk management. Based on the fundamentals of Markowitz portfolio theory and multicriteria optimization, this paper builds four models of the optimal portfolios for centralized pharmacy network. In contrast to the classic two-criteria model (risk minimization while maximizing income), our models have been introduced to maximize entropy, which enhances the diversification effect. Matlab software has been developed for solving multicriteria problems. Model verification was performed on real data provided by one of the pharmacy networks. The modeling results will be useful for automating the business processes of any trading network, managing risk, analysing loyalty programs to improve the effectiveness of their operations

Keyphrases: Multi-criteria, Pharmacy network, optimal portfolio model

@booklet{EasyChair:3411,
  author    = {Anna Bakurova and Hanna Ropalo and Elina Tereschenko},
  title     = {Modeling of Complex Diversification for Centralized Pharmacy Network},
  howpublished = {EasyChair Preprint 3411},
  year      = {EasyChair, 2020}}