Research on emergency material reserve strategy and supply chain coordination under agreement enterprise reserve model

HU Zhongquan, GUO Kexin, XU Jinpeng, FENG Pingping

Systems Engineering - Theory & Practice ›› 2024, Vol. 44 ›› Issue (5) : 1589-1602.

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Systems Engineering - Theory & Practice ›› 2024, Vol. 44 ›› Issue (5) : 1589-1602. DOI: 10.12011/SETP2023-0191

Research on emergency material reserve strategy and supply chain coordination under agreement enterprise reserve model

  • HU Zhongquan, GUO Kexin, XU Jinpeng, FENG Pingping
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Abstract

In order to give full play to the advantages of the enterprise reserve mode of emergency materials, a cooperation between governments and enterprises is established by using option contracts. Considering that the enterprise can choose physical reserve and production capacity reserve, the paper gives the optimal reserve form (single physical reserve, single production capacity reserve, physical reserve and production capacity reserve) and corresponding reserve quantity when the option exercise price and the probability of disaster events meet different conditions. On the basis of this, the corresponding supply chain coordination mechanism is designed, and the effects of relevant factors on the coordination mechanism, the reserve strategy and the cost-benefit of the government and the enterprise are analyzed. The results show that the designed coordination mechanism has strong robustness; When the enterprise adopts physical reserve and production capacity reserve at the same time, the higher probability of disaster events will lead to the increase of physical reserve quantity and the decrease of production capacity reserve quantity, but the increase of material spot market price will only lead to the increase of production capacity reserve quantity; No matter what kind of reserve form the enterprise takes, the cost and profit of both the government and the enterprise will increase with the increase of the probability of disaster events and the spot market price of the material, and the reduction of option price will increase the sensitivity of the cost and profit of both parties to the changes of relevant factors; With the increase of the probability of disaster events and the spot market price of the material, the superiority of the enterprise reserve mode becomes more and more significant.

Key words

emergency material reserve / government-enterprise cooperation / physical reserve / production capacity reserve / supply chain coordination

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HU Zhongquan , GUO Kexin , XU Jinpeng , FENG Pingping. Research on emergency material reserve strategy and supply chain coordination under agreement enterprise reserve model. Systems Engineering - Theory & Practice, 2024, 44(5): 1589-1602 https://doi.org/10.12011/SETP2023-0191

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Funding

National Natural Science Foundation of China (72102174, 71901170); Humanities and Social Sciences Foundation of Ministry of Education of China (21XJC630004, 22YJC630173); Innovation Capability Support Program Project of Shaanxi (2023-CX-RKX-139)
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