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A novel option contract integrated with supplier selection and inventory prepositioning for humanitarian relief supply chains

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  • Aghajani, Mojtaba
  • Torabi, S. Ali
  • Heydari, Jafar

Abstract

This paper proposes a novel two-period option contract integrated with supplier selection and inventory prepositioning. A two-stage scenario-based mixed possibilistic-stochastic programming model is developed to cope with various uncertainties. The first stage's decisions include supplier selection and capacity reservation level at each supplier/period and the level of inventory prepositioning. Furthermore, decisions regarding the time and exercised amount are made in the second stage. Applicability of the model is validated through a real case study. Finally, several sensitivity analyses are conducted to examine the effect of important parameters on the solutions to gain useful managerial insights.

Suggested Citation

  • Aghajani, Mojtaba & Torabi, S. Ali & Heydari, Jafar, 2020. "A novel option contract integrated with supplier selection and inventory prepositioning for humanitarian relief supply chains," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:soceps:v:71:y:2020:i:c:s0038012119300527
    DOI: 10.1016/j.seps.2019.100780
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    7. Amir Jamali & Amirhossein Ranjbar & Jafar Heydari & Sina Nayeri, 2022. "A multi-objective stochastic programming model to configure a sustainable humanitarian logistics considering deprivation cost and patient severity," Annals of Operations Research, Springer, vol. 319(1), pages 1265-1300, December.
    8. Ghavamifar, Ali & Torabi, S. Ali & Moshtari, Mohammad, 2022. "A hybrid relief procurement contract for humanitarian logistics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 167(C).
    9. Guo, Penghui & Zhu, Jianjun, 2023. "Capacity reservation for humanitarian relief: A logic-based Benders decomposition method with subgradient cut," European Journal of Operational Research, Elsevier, vol. 311(3), pages 942-970.
    10. Fan, Yu & Shao, Jianfang & Wang, Xihui, 2023. "Relief items procurement and delivery through cooperation with suppliers and logistics companies considering budget constraints," International Journal of Production Economics, Elsevier, vol. 264(C).
    11. Rodríguez-Espíndola, Oscar & Ahmadi, Hossein & Gastélum-Chavira, Diego & Ahumada-Valenzuela, Omar & Chowdhury, Soumyadeb & Dey, Prasanta Kumar & Albores, Pavel, 2023. "Humanitarian logistics optimization models: An investigation of decision-maker involvement and directions to promote implementation," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).
    12. Shao, Jianfang & Fan, Yu & Wang, Xihui & Liang, Changyong & Liang, Liang, 2023. "Designing a new framework agreement in humanitarian logistics based on deprivation cost functions," International Journal of Production Economics, Elsevier, vol. 256(C).
    13. Hu, Shaolong & Dong, Zhijie Sasha & Lev, Benjamin, 2022. "Supplier selection in disaster operations management: Review and research gap identification," Socio-Economic Planning Sciences, Elsevier, vol. 82(PB).
    14. Meng, Qingchun & Kao, Zhiping & Guo, Ying & Bao, Chunbing, 2023. "An emergency supplies procurement strategy based on a bidirectional option contract," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    15. Zhang, Yuwei & Li, Zhenping & Zhao, Yuwei, 2023. "Multi-mitigation strategies in medical supplies for epidemic outbreaks," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
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    17. Wang, Duo & Yang, Kai & Yang, Lixing & Dong, Jianjun, 2023. "Two-stage distributionally robust optimization for disaster relief logistics under option contract and demand ambiguity," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
    18. Oscar Rodríguez-Espíndola, 2023. "Two-stage stochastic formulation for relief operations with multiple agencies in simultaneous disasters," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 45(2), pages 477-523, June.
    19. Acar, Müge & Kaya, Onur, 2023. "Dynamic inventory decisions for humanitarian aid materials considering budget limitations," Socio-Economic Planning Sciences, Elsevier, vol. 86(C).

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