The purpose of this paper is to propose a model for relief inventory ordering considering declining demand and realized shortage (RS) costs. This study is motivated by the overflow of unsolicited items in affected areas, which hinder the urgent relief flow.
This study proposes a dynamic programing model reflecting the change of demand and urgency during relief operations. A solution algorithm for finding a replenishing point of relief is also introduced here.
Relief ordering policy based on the RS cost increases the service level (in terms of time). The service level is dependent on the deterioration rate.
Deterioration is not applicable for all relief items. Therefore, the proposed model is applicable for certain relief items. Additionally, computation of temporal urgency is not included.
The study outcomes can be invaluable for resource planning. The model shows a gradual decrease of ordering quantity and a gradual increase of cycle length. This observation can be utilized for resource (e.g. truck) planning and fewer truck can be used in later stages of relief operations.
This study introduces temporal urgency for disaster logistics (DL) and proposes a relief inventory policy by incorporating temporal urgency. This model highlights the importance of considering declining demand for DL.
Das, R. and Okumura, M. (2016), "A relief ordering policy for declining demand and realized shortage cost", Journal of Humanitarian Logistics and Supply Chain Management, Vol. 6 No. 1, pp. 100-116. https://doi.org/10.1108/JHLSCM-03-2015-0012Download as .RIS
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