Emergency Supplies Reserve:Its Procurement Model and Strategies Based on the Options Contracts
Insufficient emergency reserve and irrational procurement strategies significantly contribute to the shortage of vital post-disaster emergency supplies,which leads to the suffering of victims and hinders the effectiveness of emergency supplies reserve.This study introduces the options contracts into the supply chain of government-enterprise emergency supplies,assigning differential probabilities to prioritize the acquisition channels,and incorporating victims'deprivation costs incurred with deprivation time into the government's decision-making.We have devised a procurement model for emergency reserve grounded in the options contracts,aiming to derive optimal decision strategies and conditions that facilitate coordination within the relief supply chain.Through simulation,we have analyzed the trend in optimal reserve volumes,exercise prices,government costs,and supplier profits.Consequently,we propose comprehensive strategies for emergency reserve and procurement,offering a robust theoretical foundation for achieving flexible emergency material supply.This model seamlessly blends pre-disaster reserve with post-disaster procurement and supply,effectively mitigating disaster-induced losses and minimizing the impact on victims.Furthermore,it provides a decisive basis for fostering long-term,collaborative relationship between the government and suppliers.
emergency suppliescollaborative relationship between the government and suppliersreserve procurement modelchannel coordinationthe options contracts
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