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Cooperation among humanitarian organizations has attracted increasing attention to enhance effectiveness and efficiency of relief supply chains. Our research focuses on horizontal cooperation in inventory management which is currently implemented in the United Nations Humanitarian Response Depot (UNHRD) network. The present work follows a two‐step research approach, which involves collection of empirical data and quantitative modeling to examine and overcome the coordination challenges of the network. Our interviews with members of the network identified several managerial issues for sustainable cooperative inventory management that the UNHRD network pursues. Using a newsvendor model in the context of non‐cooperative game theory, our research has explored member humanitarian organizations' incentive of joining the network, a coordination mechanism which achieves system optimality, and impacts of members' decisions about stock rationing. Our results indicate that behaviors of member HOs do not necessarily align with the UNHRD's expectation. Our results suggest that for system optimality, a system coordinator should carefully assess the circumstances, including demand coefficient and stock rationing. Our research also proposes a policy priority for the first‐best system optimal inventory management.
This is the accepted version of the paper.This version of the publication may differ from the final published version. Abstract: Storage and transportation of goods within global supply chains is a major cause of environmental damage in modern value added processes. Thus, in the past, theory and practice developed several approaches in order to decrease these negative environmental impacts that frequently counteract the traditional efficiency-oriented ambitions. However, in many cases the economic and environmental performance can be improved at the same time.
Permanent repository linkAs many activities in logistics and inventory management are related to the treatment of potential uncertainties in the system by establishing redundancies, the reduction of uncertainty has equally a positive impact on both performance measures. To investigate the interrelation between uncertainty and the economic and environmental performance of supply chains, a serial inventory system consisting of a manufacturer who works with overseas suppliers and a carrier is considered, whereas the carrier is able to reduce lead time uncertainty. The relationships between uncertainties and the economic and environmental performance of the considered inventory system are highlighted by a simulation study based on empirical data from an international container shipping supply chain.
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