The optimal ordering strategy of outsourcing procurement of health education and behavior intervention products

Abstract

Health communication and behavior intervention are main measures adopted in health education. Behavior intervention among these measures is the direct one to effect individual and group behaviors. Patients demand more than health information communication, but rely on health intervention service and related products. This essay starts from vertical extension of service industrial chain. And attribute health intervention products with characters of newsboy and random demand to outsourcing, the third party health management company (3PH). In addition, we establish mathematical model to describe how health intervention product ordering managed by 3PH and characterized with newsboy characteristic, makes impact on strategy and performance efficiency of 3PH. We obtain result of the optimal order quantity, optimal selling price and condition fulfilled optimal proportion of loss sharing, which is able to achieve added value on health education industrial chain.