Research On Mixed Reserve Decision Of Emergency Items

Natural disasters bring huge loss to the society.Emergency item reserves can be an effective way to reduce the loss if reasonable.However,Reserve also cost money,especially the Physical Reserve(PR),which is widely used.What is worse,the variety and the quantity of the items is too limited in PR to satisfy the demand of disaster relief.The Capacity Reserve(CR)can effectively expand the scale of the reserve and cost less money,while the timeliness and security level is not good as PR.For emergency items of high demand,the State encourages the PR mix with the CR to be Mixed Reserve(MR),which can give full play to the important role of emergency reserve.The purpose of the reserve is to prevent large losses at a small cost.We should always try to minimize the cost of reserves in the premise of demand meeting.It is necessary to develop a reasonable reserve strategy,including the mode and the size.This paper explores the reserve decision in MR of cost minimization.The decision aims at a kind of special relief supplies with long shelf life and strong versatility.In addition,we combine the research with the present situation of emergency reserve in China;consider the key factors on MR,and ensure the timeliness and security level.This paper studies mainly on quantity decision in MR.And the contents are as below:First,the paper analyzes the present situation of emergency reserve,and the characteristics,the suitable range and the implementation of MR.Second,it summarizes and analyzes the key factors affecting the reserve decision-making in MR,such as demand,cost,security and timeliness.Third,it develops the cost structure,the timeliness measurement and security level measurement under different demand level,proposes the assumption,and furthermore builds the decision model.The model takes the supply chain cost minimum as the goal,and the timeliness,security level and coordinated conditions as constraints.Last,it takes the earthquake case study to verify the feasibility and effectiveness of the model,and conducts the sensibility analysis on demand level,subsidies,purchase price and so on.The results show that the model is efficient,and by setting reasonable proportion of PR and CR,the MR cost less money than PR only in same reserve level.Besides,the government can control and optimize the reserve structure and reserve cost by adjusting the price and other factors.In summary,this paper study the decision problems in MR by using quantitative analysis methods,which can enrich the theoretical system of emergency reserves and provide a way to solve the current problems of emergency materials reserve.