Information Technology Journal1812-56381812-5646Asian Network for Scientific Information10.3923/itj.2012.1272.1278ZhouYong MiJianing YuNannan WangChen 92012119A model of the pharmaceutical manufacturing system is established in this paper to analyze how government policies affect pharmaceutical manufacturers business decision. The government policies considered includes inventory buy-back and pre-order. In the model, the manufacturer is assumed to minimize its financial risk while satisfying various other constraints and the conditional value-at-risk of the loss function of the manufacturer is used to measure the risk associated with its manufacturing plans. Simulation results show that government intervention can reduce the risk of manufacturers significantly. These results also serve as a reference for other countries to implement their own pharmaceutical manufacturing regulatory policies.]]>CDC,20112011UHC,20112011Artzner, P., F. Delbaen, J.M. Eber and D. Heath,19999203228Bennett, B. and G. Cole,2003Pages: 451Pages: 451Gerdil, C.,20032117761779Chen, W. and M. Sim,200957342357Congressional Budget Office,20082008Duffie, D. and J. Pan,19974749Huang, D., S. Zhu, F.J. Fabozzi and M. Fukushima,2010203185194ISMP,20101516Krokhmal, P., M. Zabarankin and S. Uryasev,2011164966Nevel, A., C. Layton and N. Lenfestey,20052005Rockafellar, R.T. and S. Uryasev,200022141Rockafellar, R.T. and S. Uryasev,20022614431471Tong, X., F. Wu and L. Qi,200924933958Uryasev, S.,20001415Verderame, P.M., J.A. Elia, J. Li and C.A. Floudas,20104939934017ASHP,20112011