EconPapers    
Economics at your fingertips  
 

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

Jingxian Chen (), Liang Liang () and Dong-Qing Yao ()
Additional contact information
Jingxian Chen: Hefei University of Technology
Liang Liang: Hefei University of Technology
Dong-Qing Yao: Towson University

Annals of Operations Research, 2017, vol. 259, issue 1, No 3, 35-63

Abstract: 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.

Keywords: Humanitarian relief; Inventory; Donation; Pre-positioning; Disaster response; Newsvendor model (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10479-017-2521-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:annopr:v:259:y:2017:i:1:d:10.1007_s10479-017-2521-4

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10479

DOI: 10.1007/s10479-017-2521-4

Access Statistics for this article

Annals of Operations Research is currently edited by Endre Boros

More articles in Annals of Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2020-04-23
Handle: RePEc:spr:annopr:v:259:y:2017:i:1:d:10.1007_s10479-017-2521-4