Comparative Modes And Decision-making On Public And Private Collaboration Relief Material Reserve Under The Leadership Of Government

Nowadays various of natural and man-made disasters occur frequently in the world.Guaranteeing timely supply of relief materials is the priority to ensure the effective implementation of disaster response work.In order to cope with the uncertainty of relief material demand caused by the uncontrollability of disasters,it is necessary to reserve relief materials in advance.Although the government often plays a leading role in dealing with various disasters,due to the limitations of its own functional attribute,it is not enough for the government to undertake all tasks of production reserve alone.While private enterprise has more professional ability in purchasing,production and supply,which can make up for the government's lack of emergency capacity and efficiency.Meanwhile,it can create more profits for private enterprise and save cost for the government,so the way of public-private collaboration has good advantages in building the emergency relief supply chain.This paper focuses on the issue of reserve of relief materials.The research object is a two-level supply chain composed of one government department(e.g.Ministry of Emergency Management,Red Cross Society)and one manufacturer(private enterprise).Considering the probability of disasters occurrence,compared with the government independent reserve mode,the government subsidy collaboration mode and government share surplus inventory mode are established to construct public-private collaboration relief supply chain.In this supply chain,as the manufacturer,the private enterprise need to consider both his business need and disaster need.In the two collaboration modes,government decides the amount of subsidy and share proportion respectively,the private enterprise decides the production.In the settings of deterministic business demand and high-low business demand,the equilibrium solution of two collaboration modes are analysed respectively,and numerical examples are provided.The results show: in the setting of deterministic business demand,when the probability of disaster occurrence is small and the disaster demand is large,the government share surplus inventory is better for the government.When the production cost is small,the government subsidy mode is better for the private enterprise.When the production cost is large,the private enterprise would not participate in the collaboration.In the setting of high-low business demand,when probability of high business demand is large,the government share surplus inventory mode is better for the government.The larger the probability of high business demand,the more profits the private enterprise will receive.