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A two‐stage procurement model for humanitarian relief supply chains

A two‐stage procurement model for humanitarian relief supply chains Purpose – The purpose of this paper is to discuss and to help address the need for quantitative models to support and improve procurement in the context of humanitarian relief efforts. Design/methodology/approach – This research presents a two‐stage stochastic decision model with recourse for procurement in humanitarian relief supply chains, and compares its effectiveness on an illustrative example with respect to a standard solution approach. Findings – Results show the ability of the new model to capture and model both the procurement process and the uncertainty inherent in a disaster relief situation, in support of more efficient and effective procurement plans. Research limitations/implications – The research focus is on sudden onset disasters and it does not differentiate between local and international suppliers. A number of extensions of the base model could be implemented, however, so as to address the specific needs of a given organization and their procurement process. Practical implications – Despite the prevalence of procurement expenditures in humanitarian efforts, procurement in humanitarian contexts is a topic that previously has only been discussed in a qualitative manner in the literature. This work provides practitioners with a new approach to quantitatively assess and improve their procurement decision processes. Originality/value – This study adds to the existing literature by demonstrating the applicability and effectiveness of an analytic modeling technique based on uncertainty, such as stochastic programming with recourse, in the context of humanitarian relief procurement activities. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Humanitarian Logistics and Supply Chain Management Emerald Publishing

A two‐stage procurement model for humanitarian relief supply chains

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Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
2042-6747
DOI
10.1108/20426741111188329
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to discuss and to help address the need for quantitative models to support and improve procurement in the context of humanitarian relief efforts. Design/methodology/approach – This research presents a two‐stage stochastic decision model with recourse for procurement in humanitarian relief supply chains, and compares its effectiveness on an illustrative example with respect to a standard solution approach. Findings – Results show the ability of the new model to capture and model both the procurement process and the uncertainty inherent in a disaster relief situation, in support of more efficient and effective procurement plans. Research limitations/implications – The research focus is on sudden onset disasters and it does not differentiate between local and international suppliers. A number of extensions of the base model could be implemented, however, so as to address the specific needs of a given organization and their procurement process. Practical implications – Despite the prevalence of procurement expenditures in humanitarian efforts, procurement in humanitarian contexts is a topic that previously has only been discussed in a qualitative manner in the literature. This work provides practitioners with a new approach to quantitatively assess and improve their procurement decision processes. Originality/value – This study adds to the existing literature by demonstrating the applicability and effectiveness of an analytic modeling technique based on uncertainty, such as stochastic programming with recourse, in the context of humanitarian relief procurement activities.

Journal

Journal of Humanitarian Logistics and Supply Chain ManagementEmerald Publishing

Published: Oct 21, 2011

Keywords: Humanitarian logistics; Procurement; Decision modelling; Optimization; Stochastic programming

References