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Pre-positioning inventory and service outsourcing of relief material supply chain

Yao, Xin; Huang, Ruting; Song, Malin; Mishra, Nishikant

Authors

Xin Yao

Ruting Huang

Malin Song songmartin@163.com

Dr Nishikant Mishra Nishikant.Mishra@hull.ac.uk
Professor/ Head of Management Systems Subject Group

Abstract

Service outsourcing is very common in a commercial supply chain, and in humanitarian relief area the transportation service is usually outsourced. To practice relief supply more effectively, it seems essential to enlarge outsourcing from shipping to more areas, and private enterprises could play a vital role. This paper examines the optimal pre-disaster order quantity of a certain relief commodity, based on a two-stage coordinated approach. Our findings show that the delay cost, shortage penalty cost, risk of supply shortage, salvage value, expected perishable rate, unit inventory cost and reactive price have significant impacts on the optimal amount of propositioned inventory. Moreover, the outsourcing strategies differ by types of relief commodities. For perishable supplies, proactive or reactive outsourcing would improve the benefits of buyer and supplier simultaneously. As for imperishable supplies, it is better to combine proactive insourcing approach and reactive outsourcing strategy. In view of some supplies whose monitoring cost is high, the insourcing approach is much better than outsourcing approach.

Journal Article Type Article
Publication Date Jul 19, 2018
Journal International Journal of Production Research
Print ISSN 0020-7543
Electronic ISSN 1366-588X
Publisher Taylor & Francis
Peer Reviewed Peer Reviewed
Volume 56
Issue 21
Pages 6859-6871
Institution Citation Yao, X., Huang, R., Song, M., & Mishra, N. (2018). Pre-positioning inventory and service outsourcing of relief material supply chain. International Journal of Production Research, 56(21), 6859-6871. doi:10.1080/00207543.2018.1495853
DOI https://doi.org/10.1080/00207543.2018.1495853
Keywords Management Science and Operations Research; Strategy and Management; Industrial and Manufacturing Engineering
Publisher URL https://www.tandfonline.com/doi/full/10.1080/00207543.2018.1495853
Copyright Statement ©2018 The University of Hull
Additional Information Peer Review Statement: The publishing and review policy for this title is described in its Aims & Scope.; Aim & Scope: http://www.tandfonline....cope&journalCode=tprs20

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