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An option contract for vaccine procurement using the SIR epidemic model

Author

Listed:
  • Shamsi G., N.
  • Ali Torabi, S.
  • Shakouri G., H.

Abstract

Timely and adequate supply of vaccines in disastrous situations has a key role in controlling communicable diseases. This paper develops a specific option contract for proactively provisioning required vaccine doses from two suppliers (a main and a backup). The model aims to minimize the procurement and social costs using the SIR epidemic model. A novel hybrid solution procedure is developed using the optimal control theory, Stackelberg game model and nonlinear programming approaches. To evaluate the performance of the developed solution method, a number of numerical examples are presented and their results are discussed.

Suggested Citation

  • Shamsi G., N. & Ali Torabi, S. & Shakouri G., H., 2018. "An option contract for vaccine procurement using the SIR epidemic model," European Journal of Operational Research, Elsevier, vol. 267(3), pages 1122-1140.
    • Handle: RePEc:eee:ejores:v:267:y:2018:i:3:p:1122-1140
    DOI: 10.1016/j.ejor.2017.12.013
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