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Relief aid stocking decisions under bilateral agency cooperation

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  • Coskun, Abdullah
  • Elmaghraby, Wedad
  • Karaman, M. Muge
  • Salman, F. Sibel

Abstract

We aim to quantify the benefits of cooperation between humanitarian relief agencies in terms of stocking decisions. We consider two agencies that stock the same type of relief item at different locations prone to individual disaster risks and agree to transship the shortage amount from available stocks in case of a disaster. We incorporate the disaster risk to the Newsvendor model by conditioning the stock quantity decisions on the event that a major disaster occurs within the lifetime of the stocked relief item. We optimize the stock quantity for each agency in response to the other's quantity and compute a Nash Equilibrium solution numerically. We apply this game theoretic approach to the case of earthquake preparedness in Istanbul to optimize the stocking decisions of an agency for shelter units in cooperation with another agency. We investigate the characteristics of the solutions under various parameter settings and identify cases in which cooperation may be beneficial to one or both of the agencies.

Suggested Citation

  • Coskun, Abdullah & Elmaghraby, Wedad & Karaman, M. Muge & Salman, F. Sibel, 2019. "Relief aid stocking decisions under bilateral agency cooperation," Socio-Economic Planning Sciences, Elsevier, vol. 67(C), pages 147-165.
    • Handle: RePEc:eee:soceps:v:67:y:2019:i:c:p:147-165
    DOI: 10.1016/j.seps.2018.10.009
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    References listed on IDEAS

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    Cited by:

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    3. Chen, Yingzhen & Zhao, Qiuhong & Huang, Kai & Xi, Xunzhuo, 2022. "A Bi-objective optimization model for contract design of humanitarian relief goods procurement considering extreme disasters," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    4. Jessica Rodríguez‐Pereira & Burcu Balcik & Marie‐Ève Rancourt & Gilbert Laporte, 2021. "A Cost‐Sharing Mechanism for Multi‐Country Partnerships in Disaster Preparedness," Production and Operations Management, Production and Operations Management Society, vol. 30(12), pages 4541-4565, December.
    5. Patra, T. Devi Prasad & Jha, J.K., 2021. "A two-period newsvendor model for prepositioning with a post-disaster replenishment using Bayesian demand update," Socio-Economic Planning Sciences, Elsevier, vol. 78(C).
    6. Baruch Keren, 2023. "Prepositioning Emergency Inventories Under Uncertainties of Time, Location, and Quantity," SN Operations Research Forum, Springer, vol. 4(2), pages 1-25, June.
    7. Xinshang You & Shuo Zhao & Yanbo Yang & Dongli Zhang, 2022. "Influence of the Government Department on the Production Capacity Reserve of Emergency Enterprises Based on Multi-Scenario Evolutionary Game," Sustainability, MDPI, vol. 14(23), pages 1-35, November.
    8. Acar, Müge & Kaya, Onur, 2022. "Inventory decisions for humanitarian aid materials considering budget constraints," European Journal of Operational Research, Elsevier, vol. 300(1), pages 95-111.
    9. Acar, Müge & Kaya, Onur, 2023. "Dynamic inventory decisions for humanitarian aid materials considering budget limitations," Socio-Economic Planning Sciences, Elsevier, vol. 86(C).

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