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Operations Article | "Supply Chain Issues in Disaster Management "

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Supply Chain Issues in Disaster Management

- by G. Vamsee Chandra *

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Page - 4

Table 1

Commercial Supply Chains vs Relief supply Chains2

Supply Chain Parameter Commercial Supply Chain Relief Supply Chain
Distribution Network Configuration Well-defined methods for determining the number and locations of distribution centers Challenging due to the nature of the unknowns (locations, type and size of events, politics, and culture), and "last mile" considerations
Inventory Control Utilizes well-defined methods for determining inventory levels based on lead time, demand and target customer service levels Inventory control is challenging due to the high variations in lead times, demands, and demand locations
Information System Generally well-defined, using advanced technology Information is often unreliable, incomplete or non-existent
Strategic Goals Typically: to produce high quality products at low cost to maximize profitability and achieve high customer satisfaction Minimize loss of life and alleviate sufferin(Thomas 2003)
Performance Measurement System Traditionally: focused on resource performance measures, such as maximizing profit or minimizing costs Primary focus on output performance measures, such as the time required to respond to a disaster (Thomas 2002) or ability to meet the needs of the disaster (customer satisfaction)
Distribution Strategy Varies depending on the products, customer requirements and manufacturer resources Decentralized supply chain, Initially a push strategy followed by a Pull Strategy, use of 3PL for distribution of supplies

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2 Beamon, 2004.

* Contributed by: -
G. Vamsee Chandra,
IIM, Lucknow.

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