Government decisions for relief materials reserve under supply uncertainty within government-enterprise agreement

Lingzhen Zhang, Feng Chu, Jiantong Zhang and Dongxiao Gu

International Journal of Production Research, 2025, vol. 63, issue 20, 7550-7569

Abstract: Pre-positioned inventory of relief materials is crucial for the rapid response to potential disasters. Storing relief materials near disaster-prone areas facilitates quick delivery after a disaster. Consequently, governments often collaborate with local enterprises and stores to store materials. However, the proximity to disaster sites can result in the damage of relief materials, exacerbating shortages, particularly during major disasters. Despite this, the literature has not thoroughly addressed how governments pre-position materials considering damage risk. Therefore, this paper constructs a model for the relief supply chains, including a local government, a local supplier and a non-local supplier to determine the government's optimal reserve strategy and quantity. The demand and damage to materials depend on disaster intensity. We derive the conditions under which a specific reserve strategy (no-external reserve, local reserve, non-local reserve, bi-site reserve) is optimal and corresponding reserve quantity. The impacts of supplier characteristics, government-owned reserves, emergency procurement price, disaster intensity distribution, demand-intensity and supply-intensity relationships on optimal prepositioned reserves are identified. Several management insights are drawn from extensive numerical experiments.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00207543.2025.2501176 (text/html)
Access to full text is restricted to subscribers.

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:taf:tprsxx:v:63:y:2025:i:20:p:7550-7569

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TPRS20

DOI: 10.1080/00207543.2025.2501176

Access Statistics for this article

International Journal of Production Research is currently edited by Professor A. Dolgui

More articles in International Journal of Production Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().