The planning size of the drugstore chain as per transaction costs

Abstract

The optimum size of pharmacies network is the basic factor of effective activities. The quantity index of sales units was taken as a measure of its size. The optimum size of drugstore chain was estimated on the basis of the neoinstitutional approach according to which external and internal transaction costs affect the size of pharmacies network. The proposed method makes it possible to correct the structure of the pharmacies network taking into consideration economies scale, advantages and disadvantages of each unique pharmacies network in a particular period of time regarding its strategic targets.