Mitigation strategies for expiration in perishable emergency inventory system

Abstract

Considering uncertainties in emergency demand quantity and occurrence time, allowance cooperation strategy and prosocial sale strategy are designed to mitigate expiration wastages for emergency perishable inventory system. Distribution-free newsboy models are developed for relief supply chain. For computational tractability, we derive upper bound of the expected total cost, then determine the applicable conditions of proposed strategies with pessimistic criterion. We offer a proof that the controversial sale strategy may be effective in both expiration mitigation and cost reduction, and elaborate an application framework and managerial insights of proposed strategies based on the type of emergency supplies and type of disasters.