Blog archive

Popular tags

Beyond Market Mix Models 28.02.2017 Rene Reiter

Traditional Marketing Mix models attempt to explore the tradeoffs amongst different marketing channels and the spends associated with them. The weaknesses of these models are, generally, their static nature and the restrictive assumptions required to apply their results. For these reasons, an American pharmaceutical company, one of the largest in the world, engaged with Sterling Simulation to explore the benefits of agent-based modeling, prior to launching a new product. The use-case was presented by Scott Hebert, Vice President of Sterling Simulation at the AnyLogic Conference 2015.[...]
» READ MORE

Beyond Marketing-Mix Models 28.10.2016 Rene Reiter

A multi-national pharmaceutical company recently launched a new non-generic drug. Since the company already owned the leading non-generic drug in that market, cannibalization was a concern. The goal was to create market share for the new drug, while maintaining or increasing market share for the well-established drug by modifying types of promotional spend. Traditionally, the Analytics Department would employ a Marketing-Mix Model (MMM) to determine the impact of promotional spend, but the company was looking for further insight into the mechanics behind the MMM. After exploring multiple options, they determined agent-based modeling, and ultimately AnyLogic would allow for the greatest flexibility and visualization.
» READ MORE

Warehouse Modeling and Optimization Saves Millions for Cardinal Health 09.02.2016 Stepan Egorov

Being #26 in last years’ Fortune 500 list, Cardinal Health is a billion dollar pharmaceutical distribution and logistics company. Its clients are hospitals, pharmacies, physicians, and individual consumers. They face a multitude of typical distribution warehouse challenges that are further complicated by the nature of pharmaceutical products, which are smaller in size, consumable, expensive, and could be life critical. Company’s warehouses have narrow passages, and workers operate big multilevel trolleys. That increases the probability of employees’ mistakes and makes these mistakes costly. [...]
» READ MORE

Find Optimal Product Sampling Using Agent-Based Modeling 19.03.2015 Rene Reiter

Before launching a new drug, a pharmaceutical company should decide the optimal promotional mix for both patient and doctors, and the optimal sampling level, high enough to induce therapy without cannibalizing paid prescriptions. Using AnyLogic Simulation Modeling, JP Tsang, Ph.D. & MBA, addresses the complexities of launching a new drug in the pharmaceutical industry, the need for a Contract Sales Organization (CSO) and the influence of Key Opinion Leaders (KOL). The project zeroed in on the medical group practice in order to better understand the dynamics between physician and patient, and between physician and medical representatives. The Agent Based Model (ABM) allows you to understand local behavior, identify bottlenecks regarding certain output variables and better grasp the big picture.
» READ MORE