“…Improving network design to cut cost and reduce response time is critical for humanitarian logistics (Van Wassenhove, 2006; Van Wassenhove and Pedraza‐Martinez, 2012). The trend among larger humanitarian organizations (HOs) such as International Federation of Red Cross and Red Crescent Societies (IFRC), United Nations High Commissioner for Refugees (UNHCR), World Food Program (WFP), Cooperative for Assistance and Relief Everywhere (CARE), and United Nations Children's Fund (UNICEF) is to preposition un‐consigned relief items for emergency response in warehouses located close to disaster‐prone areas (see e.g., Jahre and Heigh, 2008; Schulz, 2008; Charles, 2010; Gatignon et al., 2010; McCoy and Brandeu, 2011; Bemley et al., 2013; Komrska et al., 2013). However, stock prepositioning is expensive, and owing to funding restrictions, other alternatives have been suggested including vendor‐managed inventory (Van Wassenhove and Pedraza Martinez, 2012), framework agreements (Balcik and Ak, 2013), transfer mechanisms between programs (Bhattacharya et al., 2014), and co‐location between organizations (Acimovic and Goentzel, 2016).…”