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Pre-positioning of relief inventories for non-profit organizations: a newsvendor approach

Author

Listed:
  • Jingxian Chen

    (Hefei University of Technology
    Nantong University)

  • Liang Liang

    (Hefei University of Technology)

  • Dong-Qing Yao

    (Towson University)

Abstract

Developing an efficient policy to determine the inventory a non-profit organization (NPO) should stockpile to respond to potential disasters plays a vital role in humanitarian relief. Incorporating social donation and emergency spot purchasing, this paper develops a (generalized) two-stage delivery process model to characterize relief materials’ delivery after a disaster. We propose an analytical model that aims to minimize the total costs when all demands incurred by an unexpected disaster need to be fully satisfied. Moreover, we determine that the optimal solution uniquely exists and characterize the effects of key parameters. Last, this paper also develops a risk-sharing scheme, in which the NPO and the supplier jointly stockpile relief materials. Under some mild conditions, we show that implementing the scheme could increase the storage quantity and decrease the total costs simultaneously. Several numerical examples are employed to validate the model, as well as the value of the proposed risk-sharing scheme.

Suggested Citation

  • Jingxian Chen & Liang Liang & Dong-Qing Yao, 2017. "Pre-positioning of relief inventories for non-profit organizations: a newsvendor approach," Annals of Operations Research, Springer, vol. 259(1), pages 35-63, December.
    • Handle: RePEc:spr:annopr:v:259:y:2017:i:1:d:10.1007_s10479-017-2521-4
    DOI: 10.1007/s10479-017-2521-4
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    Cited by:

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    3. 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).
    4. Patra, T. Devi Prasad & Jha, J.K., 2021. "A two-period newsvendor model for prepositioning with a post-disaster replenishment using Bayesian demand update," Socio-Economic Planning Sciences, Elsevier, vol. 78(C).
    5. Yingxin Chen & Jing Zhang & Pandu R. Tadikamalla & Lei Zhou, 2019. "The Mechanism of Social Organization Participation in Natural Hazards Emergency Relief: A Case Study Based on the Social Network Analysis," IJERPH, MDPI, vol. 16(21), pages 1-20, October.
    6. Baruch Keren, 2023. "Prepositioning Emergency Inventories Under Uncertainties of Time, Location, and Quantity," SN Operations Research Forum, Springer, vol. 4(2), pages 1-25, June.
    7. Zhang, Weijian & Shi, Xianliang & Huang, Anqiang & Hua, Guowei & Teunter, Ruud H., 2023. "Optimal stock and capital reserve policies for emergency medical supplies against epidemic outbreaks," European Journal of Operational Research, Elsevier, vol. 304(1), pages 183-191.
    8. 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.
    9. Lijo John & Anand Gurumurthy & Arqum Mateen & Gopalakrishnan Narayanamurthy, 2022. "Improving the coordination in the humanitarian supply chain: exploring the role of options contract," Annals of Operations Research, Springer, vol. 319(1), pages 15-40, December.
    10. Seyed Reza Abazari & Fariborz Jolai & Amir Aghsami, 2022. "Designing a humanitarian relief network considering governmental and non-governmental operations under uncertainty," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 13(3), pages 1430-1452, June.
    11. Abhishek Behl & Pankaj Dutta, 2019. "Humanitarian supply chain management: a thematic literature review and future directions of research," Annals of Operations Research, Springer, vol. 283(1), pages 1001-1044, December.
    12. Hu, Shaolong & Dong, Zhijie Sasha, 2019. "Supplier selection and pre-positioning strategy in humanitarian relief," Omega, Elsevier, vol. 83(C), pages 287-298.
    13. Mahmud Akhter Shareef & Yogesh K. Dwivedi & Rafeed Mahmud & Angela Wright & Mohammad Mahboob Rahman & Hatice Kizgin & Nripendra P. Rana, 2019. "Disaster management in Bangladesh: developing an effective emergency supply chain network," Annals of Operations Research, Springer, vol. 283(1), pages 1463-1487, December.
    14. Qingwen Li & Jiuhe Wang & Yinggang Wang & Jian Lv, 2022. "A Two-Stage Stochastic Programming Model for Emergency Supplies Pre-Position under the Background of Civil-Military Integration," Sustainability, MDPI, vol. 14(19), pages 1-21, September.
    15. V. G. Venkatesh & Abraham Zhang & Eric Deakins & Sunil Luthra & S. Mangla, 2019. "A fuzzy AHP-TOPSIS approach to supply partner selection in continuous aid humanitarian supply chains," Annals of Operations Research, Springer, vol. 283(1), pages 1517-1550, December.

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