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| Flexible Procurement Model for Government’s Emergency Supplies Considering Reserve Period |
| CHAI Yaguang，LI Pengxuan |
| Army Logistics Academy of PLA, Chongqing, China |
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Abstract Considering the problem that the reserve materials are insufficient or the remaining materials expired when emergency supplies are pre-purchased for reserve, this study divides the types of emergency materials according to the law of inventory impairment. Focusing on the type of materials with stable value but affected by the shelf life, this study considers the impact of the reserve cycle on the basis of the quantity flexible contract, then establishes a government-led emergency material procurement model. Through the model derivation, the conditions for government-enterprise cooperation and the optimal decision of both parties are obtained, the advantages of the model over the government’s separate reserve model as well as the applicability of the model to different types of materials are verified. This study further analyzes the impact of several factors on the decision-making and cost-benefit of government and enterprises, and proposes the corresponding management strategies. The results show that the proposed model can effectively increase the reserves of emergency supplies and reduce the waste of resources caused by the storage of materials while controlling government costs and ensuring the revenue of the supplier.
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Received: 24 July 2020
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