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Designing an efficient humanitarian supply network
Author(s) -
Charles Aurelie,
Lauras Matthieu,
Van Wassenhove Luk N.,
Dupont Lionel
Publication year - 2016
Publication title -
journal of operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.649
H-Index - 191
eISSN - 1873-1317
pISSN - 0272-6963
DOI - 10.1016/j.jom.2016.05.012
Subject(s) - humanitarian logistics , supply chain , humanitarian aid , supply chain management , context (archaeology) , computer science , bridging (networking) , operations research , integer programming , order (exchange) , business , service (business) , process management , risk analysis (engineering) , economics , marketing , computer security , engineering , paleontology , finance , algorithm , biology , economic growth
Increasingly, humanitarian organizations have opened regional warehouses and pre‐positioned resources locally. Choosing appropriate locations is not easy and frequently based on opportunities rather than rational decisions. Dedicated decision‐support systems could help humanitarian practitioners design their supply networks. Academic literature suggests the use of commercial sector models but rarely considers the constraints and specific context of humanitarian operations, such as obtaining accurate data, high uncertainties, limited budgets and increasing pressure on cost efficiency. We propose a tooled methodology to properly support humanitarian decision makers in the design of their supply chains. Our contribution is based on the definition of aggregate scenarios to reliably forecast demand using past disaster data and future trends. Demand for relief items based on these scenarios is then fed to a mixed‐integer linear programming model in order to improve current supply networks. The specifications of this model have been defined in close collaboration with humanitarian workers. The model allows analysis of the impact of alternative sourcing strategies and service level requirements on operational efficiency. It provides clear and actionable recommendations for a given context, bridging the gap between academics and humanitarian logisticians. The methodology was developed to be useful to a broad range of humanitarian organizations, and a specific application to the supply chain design of the International Federation of Red Cross and Red Crescent Societies is discussed in detail.