TY - JOUR
T1 - Interventions for an Artemisinin-based Malaria Medicine Supply Chain
AU - Kazaz, Burak
AU - Webster, Scott
AU - Yadav, Prashant
N1 - Funding Information:
The authors thank Alexandra Cameron from UNITAID, Susan Nazzaro from the Bill and Melinda Gates Foundation, and Nora Hotte from the William Davidson Institute for their helpful consultations. Prashant Yadav thanks UNITAID for a multi-year grant on market intelligence for HIV/AIDS, TB and Malaria medicines and the Bill and Melinda Gates Foundation for a grant to develop the analytical frameworks for market dynamics interventions.
Publisher Copyright:
© 2016 Production and Operations Management Society
PY - 2016/9/1
Y1 - 2016/9/1
N2 - Artemisinin combination therapy, the most effective malaria treatment today, is manufactured from an agriculturally derived starting material Artemisia annua. Artemisinin, the main ingredient in malaria medicines, is extracted from Artemisia leaves and used in the production of medicine for treating malaria. The artemisinin market has witnessed high volatility in the supply and price of artemisinin extract. A large fraction of malaria medicines for endemic countries in sub-Saharan Africa is financed by the Global Fund to Fight AIDS, TB, and Malaria and the US President's Malaria Initiative. These agencies together with the World Health Organization, UNITAID, the United Kingdom Department for International Development and the Bill and Melinda Gates Foundation are exploring ways to increase the level of artemisinin production, reduce volatility of artemisinin prices, and improve overall access to malaria medicines for the population. We develop a model of the supply chain, calibrate the model using field data, and investigate the impact of various interventions. Our model shows that initiatives aimed at improving average yield, creating a support-price for agricultural artemisinin, and a larger and carefully managed supply of semi-synthetic artemisinin have the greatest potential for improving supply and reducing price volatility of artemisinin-based malaria medicine.
AB - Artemisinin combination therapy, the most effective malaria treatment today, is manufactured from an agriculturally derived starting material Artemisia annua. Artemisinin, the main ingredient in malaria medicines, is extracted from Artemisia leaves and used in the production of medicine for treating malaria. The artemisinin market has witnessed high volatility in the supply and price of artemisinin extract. A large fraction of malaria medicines for endemic countries in sub-Saharan Africa is financed by the Global Fund to Fight AIDS, TB, and Malaria and the US President's Malaria Initiative. These agencies together with the World Health Organization, UNITAID, the United Kingdom Department for International Development and the Bill and Melinda Gates Foundation are exploring ways to increase the level of artemisinin production, reduce volatility of artemisinin prices, and improve overall access to malaria medicines for the population. We develop a model of the supply chain, calibrate the model using field data, and investigate the impact of various interventions. Our model shows that initiatives aimed at improving average yield, creating a support-price for agricultural artemisinin, and a larger and carefully managed supply of semi-synthetic artemisinin have the greatest potential for improving supply and reducing price volatility of artemisinin-based malaria medicine.
KW - health care
KW - malaria
KW - supply and demand uncertainty
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U2 - 10.1111/poms.12574
DO - 10.1111/poms.12574
M3 - Article
AN - SCOPUS:84977562968
SN - 1059-1478
VL - 25
SP - 1576
EP - 1600
JO - Production and Operations Management
JF - Production and Operations Management
IS - 9
ER -