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. 2024 Mar 20:12:1334583.
doi: 10.3389/fpubh.2024.1334583. eCollection 2024.

Multi-scenario flexible contract coordination for determining the quantity of emergency medical suppliers in public health events

Hanping Hou  1 , Kun Zhang  1 , Xuewei Zhang  1
Affiliations

Multi-scenario flexible contract coordination for determining the quantity of emergency medical suppliers in public health events

Hanping Hou et al. Front Public Health. .

Abstract

Determining the optimal number of emergency medical suppliers for the government to contract with in the context of public health events poses a challenging problem. Having too many suppliers can result in increased costs, while having too few suppliers can potentially expose the government to supply risks. Striking the right balance between these two factors is crucial in ensuring efficient and reliable emergency response and management. This study examines the process of determining the appropriate number of suppliers in emergency medical supply chain. By incorporating option contracts and employing the total cost of government procurement as the objective function, the analysis focuses on the impact of relevant parameters on the optimal number of suppliers. Furthermore, the study investigates the optimal supplier quantities under different types of option contracts. The proposed decision model for determining the optimal number of suppliers in this paper considers three key factors: the supply risk associated with emergency medical supplies, the reserve cost of government procurement, and the responsiveness of emergency medical supplies. Additionally, a method is introduced for selecting the quantity of emergency medical suppliers based on flexible contracts. This approach offers a scientific foundation for the government to effectively address the challenge of supplier quantity selection when faced with risks related to shortages, expiration, and the combination of both.

Keywords: emergency medical suppliers; optimal number of suppliers; option contract; procurement of emergency medical supplies; public health events; supply risk.

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Conflict of interest statement

The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.

Figures

Figure 1
Figure 1
Call option contract model of government-enterprise cooperation.
Figure 2
Figure 2
Put option contract model of government-enterprise cooperation.
Figure 3
Figure 3
Two-way option contract model of government-enterprise cooperation.
Figure 4
Figure 4
Theoretical framework of supplier selection for call option contracts.
Figure 5
Figure 5
Theoretical framework of supplier selection for put option contracts.
Figure 6
Figure 6
Theoretical framework of supplier selection for two-way option contracts.
Figure 7
Figure 7
Chart of supplier selection quantity and cost change under different risk probabilities under two-way options.
Figure 8
Figure 8
Cost and supplier quantity.
Figure 9
Figure 9
Supplier quantity and cost sensitivity.
Figure 10
Figure 10
Cost sensitivity at different supply risks.
See this image and copyright information in PMC

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