The impact of Mean Time Between Disasters on inventory pre-positioning strategy

Abstract

Purpose -This paper addresses the impact of Mean Time Between Disasters (MTBD) to inventory pre-positioning strategy of medical supplies prior to a sudden-onset disaster.Design/methodology/approach -We developed a trade-off model based on the operations of Médecins Sans Frontières (MSF) and implemented this in a spreadsheet-based platform to show the impact of MTBD on determining a pre-positioning strategy. This spreadsheet model identifies the most cost-efficient scenario out of a set of predefined pre-positioning scenarios. We implemented the model using a case study of a cholera outbreak in Zimbabwe.Findings -We are able to show the impact of MTBD on determining the pre-positioning strategy. In addition, we also capture the trade-off decisions in transport modes and end-of-shelflife policies. Moreover, from financial perspective, we show that an interaction between relief (emergency) and development (regular) programs can be beneficial.Research limitations/implications -We have some limitations on data access and availability. Some data (e.g. uncertainty in needs and lead-time) have to be collected for future research and, then, used to refine such decisions.Practical implications -The model can be used as a justification for selecting an inventory prepositioning strategy based on mean time between disasters (MTBD).Originality/value -We introduce relevant factors in a humanitarian organization's practice that have not yet received attention in literature (i.e. MTBD, inventory swap, and trade-off decisions in transport modes and end-of-shelf-life policies).

The potential of emergent disruptive technologies for humanitarian supply chains: the integration of blockchain, Artificial Intelligence and 3D printing

“…From the HSC standpoint, Oloruntoba and Gray (2006) argue for the use of effective demand-led inventory management using postponement to allow quick responsiveness while maintaining lower costs. Saputra et al (2015) explore the trade-off between transport modes and end-of-shelf-life policies for medicine prepositioning in cases of disaster.…”

Extending dynamic capabilities towards lean thinking in humanitarian supply chains

“…Research has also been carried out into the effect of 'Mean Time Between Disasters' and prepositioning within humanitarian organisations, but uncertainty and data gaps mean that further research is required before it is actionable (Saputra et al 2015). Furthermore, non-medical items, such as generators, vehicles, blankets, communication kits, tents, etc.…”

Logistics Solutions in the Preparation Phase for the Appearance of Disasters

“…A cost advantage of the second model over the first is demonstrated. Likewise, the researchers of [17], raise the impact of the mean time between disasters (MTBD) in the strategy of pre-positioning of medical supply inventory. The authors carry out a compensation model implemented on a platform based on a spreadsheet.…”

“…In this way, equations (14)(15), ensure that a single arch enters and a single arch leaves each vertex, clients are visited only once; while equations (16)(17) ensure that the number of vehicles leaving the warehouse (vertex) return to it; while equation (18) satisfies connectivity and non-violation of vehicle capacity.…”