A relief ordering policy for declining demand and realized shortage cost

A relief ordering policy for declining demand and realized shortage cost Purpose – The purpose of this paper is to propose a model for relief inventory ordering considering declining demand and realized shortage (RS) costs. This study is motivated by the overflow of unsolicited items in affected areas, which hinder the urgent relief flow. Design/methodology/approach – This study proposes a dynamic programing model reflecting the change of demand and urgency during relief operations. A solution algorithm for finding a replenishing point of relief is also introduced here. Findings – Relief ordering policy based on the RS cost increases the service level (in terms of time). The service level is dependent on the deterioration rate. Research limitations/implications – Deterioration is not applicable for all relief items. Therefore, the proposed model is applicable for certain relief items. Additionally, computation of temporal urgency is not included. Practical implications – The study outcomes can be invaluable for resource planning. The model shows a gradual decrease of ordering quantity and a gradual increase of cycle length. This observation can be utilized for resource (e.g. truck) planning and fewer truck can be used in later stages of relief operations. Originality/value – This study introduces temporal urgency for disaster logistics (DL) and proposes a relief inventory policy by incorporating temporal urgency. This model highlights the importance of considering declining demand for DL. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Humanitarian Logistics and Supply Chain Management Emerald Publishing

A relief ordering policy for declining demand and realized shortage cost

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
2042-6747
DOI
10.1108/JHLSCM-03-2015-0012
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to propose a model for relief inventory ordering considering declining demand and realized shortage (RS) costs. This study is motivated by the overflow of unsolicited items in affected areas, which hinder the urgent relief flow. Design/methodology/approach – This study proposes a dynamic programing model reflecting the change of demand and urgency during relief operations. A solution algorithm for finding a replenishing point of relief is also introduced here. Findings – Relief ordering policy based on the RS cost increases the service level (in terms of time). The service level is dependent on the deterioration rate. Research limitations/implications – Deterioration is not applicable for all relief items. Therefore, the proposed model is applicable for certain relief items. Additionally, computation of temporal urgency is not included. Practical implications – The study outcomes can be invaluable for resource planning. The model shows a gradual decrease of ordering quantity and a gradual increase of cycle length. This observation can be utilized for resource (e.g. truck) planning and fewer truck can be used in later stages of relief operations. Originality/value – This study introduces temporal urgency for disaster logistics (DL) and proposes a relief inventory policy by incorporating temporal urgency. This model highlights the importance of considering declining demand for DL.

Journal

Journal of Humanitarian Logistics and Supply Chain ManagementEmerald Publishing

Published: Apr 4, 2016

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