Journal
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH
Volume 56, Issue 21, Pages 6859-6871Publisher
TAYLOR & FRANCIS LTD
DOI: 10.1080/00207543.2018.1495853
Keywords
operations management; statistical methods; optimisation; relief material supply chain; service outsourcing
Categories
Funding
- Key Projects of Philosophy and Social Sciences Research, Ministry of Education of China [14JZD031]
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Service outsourcing is very common in a commercial supply chain, and in humanitarian relief area, the transportation service is usually outsourced. To practice relief supply more effectively, it seems essential to enlarge outsourcing from shipping to more areas, and private enterprises could play a vital role. This paper examines the optimal pre-disaster order quantity of a certain relief commodity, based on a two-stage coordinated approach. Our findings show that the delay cost, shortage penalty cost, risk of supply shortage, salvage value, expected perishable rate, unit inventory cost and reactive price have significant impacts on the optimal amount of propositioned inventory. Moreover, the outsourcing strategies differ by types of relief commodities. For perishable supplies, proactive or reactive outsourcing would improve the benefits of buyer and supplier simultaneously. As for imperishable supplies, it is better to combine proactive insourcing approach and reactive outsourcing strategy. In view of some supplies whose monitoring cost is high, the insourcing approach is much better than the outsourcing approach.
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