Stochastic Differential Game of Sustainable Allocation Strategy for Idle Emergency Supplies in Post-Disaster Management

Lingfei Li, Jingyu Wu, Minting Zhu, Mancang Wang and Yaoyuan Li ()
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Lingfei Li: School of Public Administration, Northwest University, Xi’an 710127, China
Jingyu Wu: School of Economics and Management, Northwest University, Xi’an 710127, China
Minting Zhu: School of Economics and Management, Northwest University, Xi’an 710127, China
Mancang Wang: School of Economics and Management, Northwest University, Xi’an 710127, China
Yaoyuan Li: School of Public Administration, Northwest University, Xi’an 710127, China

Sustainability, 2024, vol. 16, issue 22, 1-45

Abstract: This study aims to explore allocation strategies for idle emergency supplies in a “demander–platform–supplier” supply chain system along with government regulation during the post-disaster recovery period. Allocation of emergency supplies is a complex task that encompasses resource allocation before and after disasters. It is essential to reduce losses in disaster-stricken areas and support development during post-disaster recovery. However, there is often an excessive supply of emergency materials and a mismatch between supply and demand sides in downstream supply chains, which may lead to severe waste and difficulties in recovering surplus materials. This paper takes idle emergency resource sharing level and corporate social responsibility goodwill as endogenous variables. The allocation approaches are dynamically evaluated by incorporating random elements that influence the endogenous variables. Three stochastic differential games are introduced to examine the interactions between the players. The centralized decision-making satisfies the consistency of overall and individual rationalities at any time in the emergency material allocation process, promoting the optimal sharing levels of emergency materials and overall profits. The decentralized decision-making with cost-sharing contracts achieves local optima and increases the dual marginal effect of the emergency industry chain. This paper incorporates the sharing economy into emergency management, showing how technology-driven sharing platforms can optimize resource utilization. The results suggest introducing cost-sharing contracts between demanders and suppliers can enhance collaboration and effort, leading to better resource allocation and increased efficiency. It contributes to sustainability by promoting efficient resource utilization through idle emergency resource sharing. By optimizing allocation strategies and enhancing corporate social responsibility, the study fosters the long-term viability and resilience of the supply chain system in post-disaster management.

Keywords: stochastic differential game; random disturbance; supply chain; disaster response (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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