Three-tier Emergency Supply Chain Coordination Based on Bi-directional Procurement of Supplies
After a sudden event occurs,the government must respond swiftly to disasters to effectively safeguard the lives and property of the people.Timely and efficient transportation of relief supplies to disaster areas is crucial for emergency relief efforts.The interruption of raw material supply poses a risk of stock outage for the three-tier emergency supply chain.Manufacturing enterprises are unable to procure large quantities of raw materials for capacity expansion,thus struggling to meet the production procurement demands during special peri-ods,severely affecting the efficiency of emergency rescue.Simultaneously,the risk of uncertainty of emergency supplies demand can lead to improper resource allocation and waste.To enhance the flexibility of the emergency supply chain and strengthen cooperation among supply chain members,this paper takes the three-tier emergency supply chain system consisting of government,the manufacturer and raw material supplier as the research target.It analyzes procurement and buyback strategies of relief supplies.This approach can mitigate the risk of rising raw material prices to a certain extent and address the loss caused by shelf life risks,providing necessary guaran-tees for the production and supply of relief supplies.The main conclusions are as follows:(1)For the three-tier emergency supply chain composed of govern-ment,the manufacturer and raw material supplier,different contract types can be chosen by the government for different regions.In regions with higher frequencies of disasters,call option contracts can be chosen to achieve coordination of the three-tier emergency supply chain while meeting the needs of disaster-affected populations.For regions with lower frequencies of disasters,buyback contracts can be adopted to achieve coordination of the three-tier emergency supply chain and prevent the waste of relief supplies,maximizing their utilization.(2)A comparative analysis with the two-tier emergency supply chain of centralized decision making shows that the overall ordering level of the three-tier supply chain with the participation of raw material suppliers will be improved.Under the call option contract,the three-tier emergency supply chain benefits its members,while under the buyback contract,it enhances the risk resilience of the emergency supply chain system.Conditions for achieving coordination in the three-tier emergency supply chain under the call option contract and the total ordering quantity under the call option contract greater than under the wholesale price contract are derived.(3)In the call option contract,the execution price of relief supplies is more sensitive to the spot price,disaster victims'satisfaction,penalty costs,and search probabilities,while in the buyback contract,the buyback price of raw materials is more sensitive to the spot price,disaster victims'satisfaction,penalty costs,and search prob-abilities.The impact of disaster victims'satisfaction and penalty costs on the execution and buyback price is similar,and the spot market price has a more significant impact on the execution and buyback price.Intervals for setting the ratio of buyback price to execution price and the ratio of buyback price for manufacturers participating in three-tier emergency supply chain collaboration provide theoretical guidance for governments and manufacturers when designing contracts.Finally,the validity of the model is further verified by numerical example.This paper explores procurement and buyback strategies for relief supplies based on a supply chain consis-ting of government,the manufacturer,and raw material supplier.However,it only considers a one-to-one three-tier emergency supply chain system.Future research directions could focus on the impact of competitive relation-ships among multiple manufacturers and raw material suppliers on the three-tier emergency supply chain.