A supplier selection model for designing framework agreements in relief chain
When a disaster occurs disaster relief operations are undertaken immediately to help people affected by disasters. However in the aftermath of natural disasters relief supplies that are critical for survival may not be readily available in the desired amounts or prices. Hence procurement is an important function for disaster relief operations. Relief organizations face with several procurement decisions in managing the relief chain. Since quick response is critical in disaster relief designing efficient procurement methods are important for relief organizations. in this thesis we focus on framework agreements which allow relief organizations to guarantee availability and fast procurement of relief supplies. Given the complexities of the disaster relief operations and uncertainties regarding the occurrence of disasters designing effective framework agreements can be difficult for relief organizations. in our study we examine the characteristics of the contracts that are applied in relief chains and traditional supply chains and explore the applicability of supply chain contracts as framework agreements in relief chains. We choose a quantity flexibility contract and develop a two-stage stochastic programming model that selects suppliers to an agreement and determines some contract terms for the relief organization. We develop a case study to illustrate the implementation of the proposed model and test the effects of various parameters on solutions.