Relief items procurement and delivery through cooperation with suppliers and logistics companies considering budget constraints

Cooperation between relief organisations and enterprises (e.g., suppliers and logistics companies) plays an important role in preparing for a disaster. However, current cooperating contracts signed with enterprises are far from mature and fail to attract their interests in China, while decision-makers also lack experience in allocating the limited budget in the cooperation. Hence, in this paper we aim to solve the problems through designing suitable framework agreements (FAs) with suppliers and logistics companies based on Stackelberg games, then analyse the allocation of limited budget between these two FAs to minimize the social cost. A real-world case study in China will be conducted to show the feasibility and aptness of our FAs and models. The result shows that suitable contracts with incentives can attract the enterprises’ interests, and through suitable allocation of budget, both the relief organisation and enterprises can benefit from the cooperation.