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Government strategies to secure the supply of medical products in pandemic times

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  • Hammami, Ramzi
  • Salman, Sinan
  • Khouja, Moutaz
  • Nouira, Imen
  • Alaswad, Suzan

Abstract

We investigate how to secure reliable access to personal protective equipment (PPE) in pandemics, which are characterized by random occurrences and durations, at the lowest expected cost. The policymaker’s strategy is based on a mix of (1) holding ready-to-use strategic stockpile that is acquired at regular price but incurs a holding cost, (2) building partnership with PPE manufacturers to relocate offshore production locally, which guarantees some local supply but requires offering subsidies, and (3) buying PPE from the spot market, which is characterized by long supply lead times and high prices.

Suggested Citation

  • Hammami, Ramzi & Salman, Sinan & Khouja, Moutaz & Nouira, Imen & Alaswad, Suzan, 2023. "Government strategies to secure the supply of medical products in pandemic times," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1364-1387.
    • Handle: RePEc:eee:ejores:v:306:y:2023:i:3:p:1364-1387
    DOI: 10.1016/j.ejor.2022.07.007
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