Balancing inventory efficiency: EOQ model integration with IPR management

In the pharmaceutical sector, where product lifecycles are tightly bound to patent expiration and regulatory constraints, inventory management requires a nuanced approach that aligns operational efficiency with the strategic use of intellectual property rights (IPR). This paper presents an integrated Economic Order Quantity (EOQ) model that incorporates IPR management parameters to optimize inventory decisions for patented pharmaceutical products. By embedding factors such as patent expiration timelines, royalty structures, regulatory approval delays, and market exclusivity periods into the EOQ framework, the proposed model enables firms to minimize holding and ordering costs while maximizing the commercial value of protected drugs. A numerical simulation using real-world data illustrates how the model guides procurement decisions during the patent-protected lifecycle of a drug and transitions toward generic production. This integration provides a robust decision-making tool for pharmaceutical companies aiming to synchronize supply chain efficiency with intellectual property strategy under competitive and compliance-driven conditions.