A two‐stage procurement model for humanitarian relief supply chains

TLDR

Procurement in humanitarian contexts has been discussed only qualitatively, despite its prevalence in humanitarian efforts. The paper aims to develop quantitative models to support and improve procurement in humanitarian relief efforts, demonstrating the applicability of stochastic programming with recourse. The authors present a two‑stage stochastic decision model with recourse for procurement in humanitarian relief supply chains, benchmarking it against a standard solution approach. The model captures procurement processes and disaster‑related uncertainty, enabling more efficient and effective procurement plans and offering practitioners a quantitative tool to improve decision processes. The study focuses on sudden‑onset disasters without distinguishing local versus international suppliers, though extensions could tailor the model to specific organizational needs.

Abstract

Purpose The purpose of this paper is to discuss and to help address the need for quantitative models to support and improve procurement in the context of humanitarian relief efforts. Design/methodology/approach This research presents a two‐stage stochastic decision model with recourse for procurement in humanitarian relief supply chains, and compares its effectiveness on an illustrative example with respect to a standard solution approach. Findings Results show the ability of the new model to capture and model both the procurement process and the uncertainty inherent in a disaster relief situation, in support of more efficient and effective procurement plans. Research limitations/implications The research focus is on sudden onset disasters and it does not differentiate between local and international suppliers. A number of extensions of the base model could be implemented, however, so as to address the specific needs of a given organization and their procurement process. Practical implications Despite the prevalence of procurement expenditures in humanitarian efforts, procurement in humanitarian contexts is a topic that previously has only been discussed in a qualitative manner in the literature. This work provides practitioners with a new approach to quantitatively assess and improve their procurement decision processes. Originality/value This study adds to the existing literature by demonstrating the applicability and effectiveness of an analytic modeling technique based on uncertainty, such as stochastic programming with recourse, in the context of humanitarian relief procurement activities.