The uncertainty associated with the location, severity and timing of disaster makes it difficult for the humanitarian organization (HO) to predict demand for the aid material and thereby making the relief material procurement even more challenging. This research explores whether options contract can be used as a mechanism to aid the HO in making procurement of relief material less challenging by addressing two main issues: inventory risk for buyers and over-production risk for suppliers. Furthermore, a contracting mechanism is designed to achieve coordination between the HO and aid material suppliers in the humanitarian supply chain through optimal pricing. The options contract is modelled as a stylized version of the newsvendor problem that allows the HO to adjust their order quantity after placing the initial order at the beginning of the planning horizon. This flexibility helps to mitigate the risk of both overstocking and understocking for the HO as well as the risk of overproduction for the supplier. Our results indicate that the optimal values for decision parameters are not “point estimates” but a range of prices, which can facilitate negotiation between the two parties for appropriate selection of contract parameters under an options contract. The results imply that options contract can aid in the decentralized approach of fixing the prices between the HO and the supplier, which in turn would help in achieving systemic coordination.

中文翻译：

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改善人道主义供应链的协调：探索期权合约的作用

与灾难发生的地点、严重程度和时间相关的不确定性使得人道主义组织 (HO) 难以预测对援助物资的需求，从而使救援物资采购更具挑战性。本研究探讨了期权合同是否可以用作一种机制，通过解决两个主要问题来帮助 HO 降低救济物资采购的挑战性：买方的库存风险和供应商的生产过剩风险。此外，合同机制旨在通过最优定价实现人道主义供应链中 HO 和援助材料供应商之间的协调。期权合约被建模为报童问题的程式化版本，允许 HO 在计划范围开始时下初始订单后调整他们的订单数量。这种灵活性有助于降低 HO 的库存过剩和库存不足的风险以及供应商生产过剩的风险。Our results indicate that the optimal values for decision parameters are not “point estimates” but a range of prices, which can facilitate negotiation between the two parties for appropriate selection of contract parameters under an options contract. 结果表明，期权合约有助于分散的方法来固定 HO 和供应商之间的价格，这反过来将有助于实现系统协调。这种灵活性有助于降低 HO 的库存过剩和库存不足的风险以及供应商生产过剩的风险。Our results indicate that the optimal values for decision parameters are not “point estimates” but a range of prices, which can facilitate negotiation between the two parties for appropriate selection of contract parameters under an options contract. 结果表明，期权合约有助于分散的方法来固定 HO 和供应商之间的价格，这反过来将有助于实现系统协调。这种灵活性有助于降低 HO 的库存过剩和库存不足的风险以及供应商生产过剩的风险。Our results indicate that the optimal values for decision parameters are not “point estimates” but a range of prices, which can facilitate negotiation between the two parties for appropriate selection of contract parameters under an options contract. 结果表明，期权合约有助于分散的方法来固定 HO 和供应商之间的价格，这反过来将有助于实现系统协调。which can facilitate negotiation between the two parties for appropriate selection of contract parameters under an options contract. 结果表明，期权合约有助于分散的方法来固定 HO 和供应商之间的价格，这反过来将有助于实现系统协调。which can facilitate negotiation between the two parties for appropriate selection of contract parameters under an options contract. 结果表明，期权合约有助于分散的方法来固定 HO 和供应商之间的价格，这反过来将有助于实现系统协调。