Effective Supply Chain Model for Disaster Management

22
GITAM SCHOOL OF INTERNATIONAL BUSINESS GITAM UNIVERSITY GLOBAL SUPPLY CHAIN MANAGEMENT TERM PAPER ON EFFECTIVE SUPPLY CHAIN MODEL FOR DISASTER MANAGEMENTSUBMITTED TO Mr Ravi Shankar Professor Global Supply Chain Management SUBMITTED BY NAME: Arka Jyoti Paul MBA (IB) Second Year 4 th Trimester SECTION B REGISTRATION NUMBER 1226110203

Transcript of Effective Supply Chain Model for Disaster Management

Page 1: Effective Supply Chain Model for Disaster Management

GITAM SCHOOL OF INTERNATIONAL BUSINESS

GITAM UNIVERSITY

GLOBAL SUPPLY CHAIN MANAGEMENT

TERM PAPER ON

“EFFECTIVE SUPPLY CHAIN MODEL FOR DISASTER

MANAGEMENT”

SUBMITTED TO

Mr Ravi Shankar

Professor

Global Supply Chain Management

SUBMITTED BY

NAME: Arka Jyoti Paul

MBA (IB) Second Year 4th

Trimester

SECTION – B

REGISTRATION NUMBER – 1226110203

Page 2: Effective Supply Chain Model for Disaster Management

2 | P a g e

ACKNOWLEDGEMENT

I owe a great many thanks to a great many people who helped and supported me during the

preparation of this report.

I hearty thank our Global Supply Chain Management Professor Mr Ravi Shankar for

guiding us through the project and correcting the various documents with attention and

upmost care. He has taken the pain to go through the report and make necessary adjustment

and correction where required.

I would also thank our Institution and our Faculty members without whom this project would

have been a distinct reality. I would also like to extend my heartfelt thanks to our family and

well wishers.

Page 3: Effective Supply Chain Model for Disaster Management

3 | P a g e

ABSTRACT

Disasters recently received the attention of the operations research community due to the

great potential of improving disaster-related operations through the use of analytical tools,

and the impact on people that this implies. In this introductory article, I describe the main

characteristics of disaster supply chains, and I highlight the particular issues that are faced

when managing these supply chains.

In the event of disasters such as hurricanes, earthquakes and terrorism, emergency relief

supplies need be distributed to disaster victims in timely manner to protect the health and

lives of the victims. I develop a modelling framework for disaster response where the supply

chain of relief supplies and distribution operations are simulated, and analytics for the

optimal transportation of relief supplies to various PODS (Points of Distribution) are tested.

This model of disaster response includes modelling the supply chain of relief supplies,

distribution operations at PODs, dynamics of demand, and progression of disaster. The

model analytics optimize the dispatch of relief supplies to PODs and cross-levelling among

PODs. Their effectiveness is estimated by the simulation model. The model can evaluate a

wide range of disaster scenarios, assess existing disaster response plans and policies, and

identify better approaches for government agencies and first responders to prepare for and

respond to disasters.

Key learning’s from the supply chain model are discussed broadly at the end of the report but

for briefing the learnings were:

For a Disaster Management Supply chain model the lead time should be very less or

minimal.

Quick and effective suppliers are required for quick procurement of Emergency food

and medicine.

Concept of Cross Docking and in-transit merging should be used in the model

Human and financial resources need to be mobilized.

Disaster response plans should have the flexibility to handle adverse situations like

low POD (Point of Distribution) throughput and large number of victims.

Centralized Database should be maintained.

Extended Point of Delivery & Relief should be spacious, convenient to reach for the

casualties etc.

Page 4: Effective Supply Chain Model for Disaster Management

4 | P a g e

CONTENTS

INTRODUCTION Page No (5 – 6)

DISASTER PREPAREDNESS AND RESPONSE MODEL Page No (7 – 10)

RELIEF CHAIN PROCESSES Page No ( 11)

EMERGENCY LOGISTICS & TRANSPORTATION Page No ( 12 – 13)

MANAGE INFORMATION DURING DISASTER Page No ( 14 – 15)

INFRASTRUCTURE Page No ( 16 )

FINANCIAL SUPPLY CHAIN Page No ( 17 )

LOGISTICS SOFTWARE USED IN DISASTER RELIEF Page No ( 17 - 18)

COMMUNICATION Page No ( 18 - 19 )

KEY LEARNING FROM THE SUPPLY CHAIN MODEL Page No ( 20 – 21)

CONCLUSION Page No ( 21)

REFERENCE Page No ( 22 )

Page 5: Effective Supply Chain Model for Disaster Management

5 | P a g e

INTRODUCTION

Recent natural and man-made disasters such as Hurricane Katrina in 2005, Hurricane Gustav

in 2008, flooding in Iowa in 2008, flooding in North Dakota in 2009, earthquake in the

Sichuan Province of China in 2008, U.S. anthrax attack in 2001 and the possibility of a

pandemic of H1N1 influenza in 2009 made us realize how important it is to have effective

disaster preparedness and response planning. Larson et al. (2006) provide a historical review

of five major disasters – the Oklahoma City bombing in 1995, the crash of United Flight 232

in 1989, the Sarin attach in the Tokyo subway in1995, Hurricane Floyd in 1999 and

Hurricane Charlie in 2004 - and stress the need for operations research models to improve

preparedness for and response to major emergencies. One of the responsibilities of federal

and local governments is to distribute emergency relief supplies such as water, meals,

blankets, generators, tarps and medicine to disaster victims in the event of various natural and

man-made disasters such as hurricanes, earthquake, flood and terrorism. Emergency relief

operations may need to cover millions of people in a short period of time. For example, it is

desired that water and meals reach victims within three days to prevent serious health hazard

and death. For a wide-spread smallpox attack, the vaccination of all in potential contact is

recommended within 4 days of exposure, and in the event of an anthrax outbreak, the

distribution of antibiotics is recommended within two days of the event. Adverse

consequences of ineffective distribution planning can include death, sickness and social

disorder. For example, the confirmed death toll from hurricane Katrina in 2005 is over 1,300

victims, in addition to $200 billion of damages. A better response plan would have reduced

the death toll in these disasters. Therefore, careful planning of distribution of emergency

supplies considering various risk factors and uncertainty is important because it will influence

the lives of many people. The task of providing immediate disaster relief and recovery

assistance also requires coordination between local and the federal government.

The supply chain of the relief supplies differs from commercial supply chains in many ways

including the following factors; a huge surge of demand with a short notice,

damaged/congested roadways, chaotic behaviour of demand (victims), breakdown of

infrastructure such as communication networks, short lead times, and many other unknowns

and uncertainties. Preparing for a large disaster such as a hurricane is difficult because

predicting where it will strike with accuracy is impossible. For example, based on the

National Hurricane Centre’s (NHC) average forecast error, the highest probability that a hur-

ricane is expected to make landfall within 65 nautical miles radius of a certain area in 48

Page 6: Effective Supply Chain Model for Disaster Management

6 | P a g e

hours is only 20-25% (NHC, 2009). Therefore, for the HCLP (high-consequence, low-

probability) events, a new breed of analytical models is needed to better understand the

disasters and to better prepare for and respond to disasters.

Disaster Management

A crisis, resulting in extensive human suffering, property damage, and a disruption of society,

stretches the community's coping mechanism beyond the breaking point. The event becomes

a disaster when the community's capacity to cope is overwhelmed and the status quo becomes

untenable.

To improve this situation, we need a strong and robust supply chain. To be effective in a

disaster situation, the supply chain needs to encompass the following features:

1. Agility

Agility is the capacity to adjust rapidly to and respond to changes in the distribution process

at any point in the operation in order to rationalize and harmonize emergent requirements and

priorities.

2. Value

Value means to have the best possible synergy of effectiveness and efficiency to provide the

most responsive support for the least cost.

3. Velocity

Velocity is the speed at which requirements are fulfilled by the distribution system.

Synchronizing the velocities of the various global distribution aspects maximizes total system

effectiveness.

4. Visibility

Visibility is required to have the accurate and timely monitoring and managing of flow by all

parties. Supply chain visibility applications enable the management to extract data from

multiple platforms and applications and share that up and down the supply chain. It allows

the distribution managers to optimize the distribution capacity to anticipate logistic

bottlenecks, disruption, and changes in the distribution operational scheme.

Page 7: Effective Supply Chain Model for Disaster Management

7 | P a g e

DISASTER PREPAREDNESS AND RESPONSE MODEL

Disaster preparedness and response modelling consist of four areas: supply chain model,

POD distribution model, demand model and disaster model. The supply chain model

describes the flow of disaster relief supplies from federal government suppliers to distribution

centres (DC), to federal staging areas to staging areas of local governments, and finally to the

points of distribution (POD). The POD distribution model describes how relief supplies are

distributed to victims who come to a POD to receive supplies. The demand model describes

the occurrence of disaster victims needing relief supplies with respect to time and location.

The disaster model describes the arrival and progression of disasters with respect to time and

location. The disaster model affects the other three models. It influences the number of

victims (i.e., the demand model) and activation of supply chain nodes and transportation (i.e.,

the supply chain model) and the efficiency of POD operations (i.e., POD distribution model).

All four models together contribute to the impact of disasters and overall effectiveness of

disaster preparedness and response plans and operations. For comprehensive analysis of

disaster preparedness and response, any potentially useful analytic models should also be

evaluated and tested in the simulation environment where all four areas are modelled.

It has four components; supply chain model, POD distribution model, demand model and

disaster model. Although the simulation model described here is for scenarios of hurricane,

the framework can be customized to other disaster responses. For the supply chain model, we

simulate the flow of disaster relief supplies from suppliers of federal government to

distribution centres (DC), to staging areas of federal government, to staging areas of local

government, and finally to the point of distribution (POD). The disaster relief supplies I am

focusing here is water and MREs (Meal-Ready-to-Eat).

Depending on the type, location and severity of disaster, selected supply chain nodes, i.e. a

certain number of suppliers, DCs, staging areas and PODs, are activated to handle the

required supply chain. The POD distribution model describes how relief supplies are

distributed to victims who come to PODs to receive the supplies. PODs for commodity

supplies can be parking lots of schools or stores, and victims typically drive up and pick up

boxes of supplies and drive away. PODs for medical supplies can be buildings such as

schools, recreation centres, theatres, stadium and medical facilities etc. PODs require a

number of workers (typically volunteers), machines such as folk lifts, triage for medical

Page 8: Effective Supply Chain Model for Disaster Management

8 | P a g e

supplies and service queue lines etc., and the overall throughput rate (processing rate for

distribution or dispensing) depends on all the resources and setups. The demand model

describes the occurrence of disaster victims needing relief supplies with respect to time and

location. Depending on disasters, severity and response, the profiles for victims can have

different peaks and durations. The demand model can also include modelling of evacuation,

which describes number of victims leaving the disaster area. For hurricane, most coastal

locations need to start evacuations by 48 hours in order to have them completed before the

tropical storm-force winds arrive. The victims who need emergency relief supplies are those

who stay in the affected area and be impacted by the disaster. The disaster model describes

arrival and progression of disasters with respect to time and location. The disaster model

affects the other three models. It influences the number of victims (i.e., the demand model)

and activation of supply chain nodes and transportation (i.e., the supply chain model) and the

efficiency of POD operation (i.e., POD distribution model). The balance between supplies of

disaster relief and demand of disaster victims are manifested as the coverage (i.e., percentage

of victims receiving emergency supplies over time). All four models (supply chain, demand,

POD distribution and disaster model) together influence the impact of disasters and overall

effectiveness of disaster preparedness and response plans and operations. For a

comprehensive analysis of disaster preparedness and response, any potential analytic models

developed should be evaluated and tested in the simulation environment where all four areas

are modelled.

Page 9: Effective Supply Chain Model for Disaster Management

9 | P a g e

Figure 1: DISASTER PREPAREDNESS AND RESPONSE MODEL

.

SUPPLIERS SUPPLIERS

DC DC DC

REGIONAL STAGING

AREA

REGIONAL STAGING

AREA

REGIONAL STAGING

AREA

LOCAL

STAGING AREA

LOCAL

STAGING AREA

POD POD POD POD

NEEDS

DEMAND

MODEL

DISASTER MODEL

Proximity

of disaster

Population

Severity of

Disaster

POINT OF

DISTRIBUTION

MODEL

(PODs)

SUPPLY CHAIN

MODEL

Page 10: Effective Supply Chain Model for Disaster Management

10 | P a g e

Various analytic tools can be useful in the supply chain. For instance, an optimal resource

planning model can compute optimal levels of resources such as number of storage and

staging facilities and number of trucks. An optimal pre-stocking model can compute pre-

stocking levels of supplies at various DCs and staging areas. An optimal dispatching model

can determine the destination POD of each truck that leaves the local staging area. An

optimal routing model can determine optimal routes of trucks when delivering supplies to

more than one PODs. An optimal cross shipping model can compute optimal time and

quantities of cross shipping among PODs.

In addition to the flow of emergency supplies, there also is a flow of information among the

hierarchy of command centers, which may include a central government command center

(e.g., NRCC – National Response Coordination Center), regional commend centre (e.g., JFO

– Joint Field Office) and local command center (e.g., EOC– Emergency Operating Center).

The command centers exchange information on supplies (inventory level, dispatching and

arrival of trucks) and demand (number of victims and queues) throughout the relief

operations. Communication is a key factor for effective response operations. Even if the

supply chain is setup effectively, if incorrect or delayed information are communicated, the

overall effectiveness of the disaster response operation will suffer.

INFORMATION FLOW

MATERIAL FLOW

FIGURE 2: Material and Information Flow

SUPPLIERS

WAREHOUSE

REGIONAL STAGING

LOCAL STAGING

DISTRIBUTION POINT VICTIMS

COMMAND

CENTRE

COMMAND

CENTRE

COMMAND

CENTRE

Page 11: Effective Supply Chain Model for Disaster Management

11 | P a g e

RELIEF CHAIN PROCESSES

Planning and

Preparation

During pre-disaster, proper planning and preparedness for logistical

procedures and activities must be done.

Assessment Assessment comprises of activities like preparedness planning, survey and

data collection, interpretation and forecasting, reporting and monitoring

Resource

Mobilization

Human and financial resources need to be mobilized by various

humanitarian organisation

Procurement This is emergency supplies which can be done locally or globally and can

be acquired in different ways such as bulks or stored at the vendor until

needed

Transportation It involves shipment, logistics, transportation etc, through which the goods

are brought into a country at an entry point and then moved to collection

sites run by relief organisation

Tracking &

Tracing

It means keeping track of what has been ordered, promised, things on its

way and already arrived, etc.

Stock Asset

Management

The stock should be inspected and accounted, and if there is any flaw

should be sent back.

Extended Point

of Delivery &

Relief to

Beneficiaries

An extended delivery point is an inland destination close to the affected

area where goods can be staged before the final distribution of relief to

beneficiaries. Finally, distribution should be carried out in proportion to

the requirement and all the affected gets there share

Monitoring,

Evaluation &

Reporting

During implementation, monitoring and evaluation create the information

base for decision making. It is also used to formulate conclusions and

recommendations for the supply chain.

Communication

& Collaboration

In disaster, setting communication is quite a difficult task, but quite

helpful. Between different agencies working for relief should have proper

cooperation

Page 12: Effective Supply Chain Model for Disaster Management

12 | P a g e

LOGISTICS

Logistics is central to humanitarian relief. The speed and efficacy of relief programs depends

on the ability of logisticians to procure, transport, receive, and distribute supplies to the site

of relief efforts. An effectively structured and managed relief supply chain can save lives.

Logistics would need to have following characteristics: -

1) It must move freight and people by multiple modes (Land, Sea, Air), through different

terminals.

2) Distance travelled is often long.

3) Transportation needs to be fast and flexible.

The network design that would be suitable in disaster management is a variant of, "All

shipment via Central DC (Distribution Center)". In this model, suppliers send their shipment

to the DC and the DC then forwards appropriate shipments to the retail store. Generally DCs

served the purpose of warehouse and transfer location. This model saves on both outbound

and inbound costs.

In case of disaster management, we'll use a variant of this model. In this all shipments would

be routed through a sequence of DCs. It would have following nodes:

1. Point of Origin / Source

This node refers to the actual source of all the material, people, etc. Generally, there are

numerous such nodes.

2. Point of Collection

All the material from various sources would be collected here. This would work as our first

DC. This is generally in proximity of the sources itself and located at some transportation

terminal. From here, material is now transferred to the point of extended delivery.

3. Point of Extended Delivery

This point would works as second DC and it would be in proximity to the disaster area. This

point would normally be the nearest airport or any other transport terminal.

Page 13: Effective Supply Chain Model for Disaster Management

13 | P a g e

4. Disaster Area

Disaster area is, in most of the cases, cut-off from the rest of the world. Facilities would be

transported here from the point of extended delivery. Air is most commonly used route of

transportation to this area.

FIGURE 3

In the above model with 2 DCs, there is a need to store inventory only at one center, either at

DCs or PoDs, other place would work as transfer location. Here, we could introduce the

concept of Cross Docking and in-transit merging. In Cross-docking, the inventory does not

get stored, but only passes by and goes through rapid unloading,

deconsolidation/reconsolidation and reloading. In in-transit merging the pipeline is still in

place as well, but individual shipments are grouped on the way to the point of delivery.

DCs are a transfer location, where no inventory is stored, instead cross docking is employed.

Material from inbound transportation is simply mixed and transferred into outbound

transportation. This calls for painstakingly synchronizing and coordinating the activities.

Page 14: Effective Supply Chain Model for Disaster Management

14 | P a g e

Whereas at PoDs, material is stored and broken down into appropriate lot sizes and based on

demand transfer it to the disaster-strike area.

MANAGE INFORMATION

Disasters, both natural and man-made, can strike anytime or anywhere. There are two ways to

overcome disasters: the first is to prevent them from occurring, and second to have an

emergency system and plan of operation prior to the occurrence of any crisis. In either

approach, communications play an important role in disaster management.

Disaster management demands for some design principles in an information system.

1. Information processing should be done in a prognostic manner.

2. It should be done in a case-based model.

3. The system should be automated as much as possible but with constant human monitoring

and the ability to override.

Information System Architecture

Based on above requirements, an information system is proposed. Key characteristics of the

proposed model are listed below.

1. Web Based

Web based information system is best means of sharing information in real-time scenarios. It

provides instant access to information to all concerned parties, thus reducing response time to

a great extent.

2. Centralized Database

Centralized Database means that there would be a single database of information that

everybody would have access to. Information that would need to be stored in it would be:

Inventory details

This includes inventory details at each point in the whole chain, i.e., at Point of extended

delivery, with sources and in transit.

Page 15: Effective Supply Chain Model for Disaster Management

15 | P a g e

Requirements at disaster site

This data would be fed in by PoED operator, basically in the form of order.

Tracking information

Material movement should be kept track of. This would include details like no. of vehicles,

transportation schedule and inventory-in-transit etc.

Disaster related information

This information is basically meant for projecting demand and proactive decision making.

Extent of destruction, recovery process etc would come under this head.

Requirements

Inventory details and Requirements Tracking information

Delivery notification

Instruction All tracking information

FIGURE 4: Information System Design

INFORMATION

SYSTEM

PoC SOURCES

CONTROLLING

AUTHORITY

PoEDs 3PL PROVIDERS

Page 16: Effective Supply Chain Model for Disaster Management

16 | P a g e

INFRASTRUCTURE

In relief work, both in disasters and complex humanitarian emergencies, damaged

infrastructure, inaccessible infrastructure, and the lack of infrastructure needed for large-scale

assistance lead to bottlenecks, delays, and congestion at entry points to the disaster area. As

goods flood into a region, they can be held up at the ports, border crossings, and airports due

to lack of transportation, permission to enter certain areas, or even roads. This is a problem

across all relief chains, and those employed during the Tsunami were no exception. As the

water rushed ashore, it damages the entire infrastructure in its path. This included coastal

roads, bridges, warehouses, airports, ports, vehicles, and communications infrastructure. As

the water receded, it left debris covering everything, both infrastructure it damaged and

infrastructure it left intact. The infrastructure that was in place before the Tsunami was

rendered useless until repair and clean up operations could be completed. As aid began to

arrive in the region, the lack of infrastructure prior to the Tsunami exacerbated the problems.

The demands placed on this infrastructure by the relief chains revealed deficiencies in the

undamaged infrastructure: a lack of available vehicles, insufficient fiuel storage, runways too

small to manage cargo planes, inadequate warehouse space, and scarce air traffic control. The

lack of infrastructure appropriate for a large-scale relief operation coupled with damage to a

portion of the infrastructure that did exist produced one of the biggest challenges -

congestion. In Sumatra, for example, the major airports and seaports were open; the

infrastructure beyond them was damaged. Banda Aceh's small airport went from three flights

a clay before the disaster to round-the-clock traffic. Undamaged vehicles were in short supply

and had difficulty moving through the region. The few vehicles that could get through were

large trucks that traveled on cleared roads and hence, could not reach those most in need. As

a result, helicopters became a much-coveted asset. This is also true in Darfur and the high

plateau region of Ethiopia. It is easier to fly in supplies than to get them there overland.

Insufficient ground crews to handle goods slowed the unloading of planes. At one point, a

cargo plane hit a cow at the only airport in Aceh and damaged the plane, blocking the runway

and halting relief flights for a day (Djuhari, 2005). Limited storage space led to offloaded

cargo that quickly filled available tarmac space. Communication problems and poor

information technology infrastructure caused very limited visibility into incoming shipments.

It was hard to know what is in a shipment, when it was coming, and who was coming to pick

it up.

Page 17: Effective Supply Chain Model for Disaster Management

17 | P a g e

FINANCIAL SUPPLY CHAIN

The financial response from public and private donors to the Tsunami was unprecedented.

However, before relief can begin to flow, the financial supply chain must be put into place.

This is a difficult process in the beginning and takes time. Meanwhile, available cash reserves

are quickly depleted. Before the processes for money transfers are in place and agreements

with local banks and merchants are formalized, organizations can struggle.

In the first few days, cash flow problems abound. In areas with less developed banking

infrastructure, organizations have used their creativity. Workers for CARE brought in

suitcases of cash into Southern Sudan to prime the relief efforts in that region (Martha

Thompson, personal communication, October 8, 2004). In response to the survey, two NGOs

reported difficulties during the early stages of their Tsunami response. They wrote that while

financial resources were available, they encountered problems with cash availability.

Immediately after the Tsunami, banks were closed in Jakarta due to Christmas holidays and

weekends. This complicated cash transfers from Europe and made it difficult to enter into

agreements with merchants. Competition can hinder progress in this arena as well. World

Vision reported a problem hiring local staff as the cost of hiring labour off the local market

was higher than they could offer.

LOGISTICS SOFTWARE USED IN DISASTER RELIEF

Relief logisticians must procure and track supplies from appeal to delivery while observing

financial information and the movement of goods along the relief pipeline. The availability of

accurate and pertinent information is crucial. Despite their role in providing relief to

beneficiaries, logisticians are rarely incorporated in the purchase and development of

information technology solutions relating to relief operations (Lee & Zbinden, 2003). Many

organizations have been providing relief for decades. As the information technology

revolution overtook them, they developed ad-hoc systems to help manage the logistics of

disaster relief. Yet, most relief activities are coordinated using only Microsoft Excel. Because

there are, few technical systems experts on staff and focus on overhead reduction, software

development has been left by the wayside. Consequently, these systems are short on

historical data, poorly connected, lacking integration across functions, error prone, poor at

Page 18: Effective Supply Chain Model for Disaster Management

18 | P a g e

reporting, and not able to handle food, non-food, and gifts-in-kind all in one system. Recently

the Fritz Institute, along with help from researchers at the University of Washington,

investigated this problem. First, they performed an analysis of the logistic systems in use by

leading NGOs.

COMMUNICATIONS

During a disaster, communication is as important as food and water. A disaster can damage

telecommunication infrastructure. If an event happens in a densely populated area, thousands

of people can try to make calls at the same time overloading the system. NGOs recognize the

importance of communication. Those with sufficient resources have developed internal

communication solutions. For example, the American Red Cross, through its Disaster

Services Technology Integration Project, has created mobile communication trucks. The

telecom trucks, once positioned, provide "48 phone lines, high-speed internet access, e-mail

and satellite-enabled communication with national headquarters" (Larkin, 2001). These

trucks were deployed during the response to the 9/11 attacks and during Hurricane Lili in

2002. The ability to have real time information on victims, volunteers, logistics, and financial

information allows the American Red Cross to respond in an efficiently coordinated manner

(Rudduck, 2002). Organizations operating in more remote locations or on smaller budgets

must rely on other options. Figure 4 is a list of currently available communication options.

Short Wave or

HFRadio

VIHF Radio

High Frequency (HF) radio allows voice communication over medium to

long range. It can connect to mobile phones and the international

telephone network. Peripheral units connect with the international

network via fixed short-wave radio stations. These systems can call other

stations, link with Global Positioning Systems, provide FTP like data

transfer, e-mail using true TCP/IP, and fax between stations. It is also

possible to set up local radio-to-telephone links that in the medium to

long term are cheaper to run than using the ground stations. Software

systems do require experienced installation and operation, antennas, and

significant electric current - normally a local main, generator battery

power supply.

Page 19: Effective Supply Chain Model for Disaster Management

19 | P a g e

VIHF Radio Very High Frequency (VHF) is a short-range system for "line of sight"

links, suitable for voice communication between mobile or hand portable

transceivers over limited distances, and between mobiles and permanent

sites. There is no access to international telecommunications networks.

Setting up and operating a VHF system does not require prior

knowledge. The transmitters use little power and can be operated from a

vehicle battery.

Satellite The InMarSat constellation of four geostationary satellites is used to

provide high-quality direct-dial voice, fax, and telex communications to

and from the international public telecommunications networks. Mobile-

to-mobile calls may also be made; but as this involves two satellite

'hops', the quality will be reduced and the charges will be higher.

Recently, InMarSat has offered a service called Regional Broadband

Global Area Network, or RBGAN. This is a satellite terminal allowing

internet access.Iridium uses a constellation of 66 satellites in a near polar Low

Earth Orbit (LEO) with cross-link architecture. Iridium services include

worldwide voice, paging, Short Message Service (SMS), and data

communications using lightweight, handheld phones and paging devices.

Cellular Phones Cellular phones are increasing prevalent the world over. If a disaster

happens in an area with cell infrastructure, but does not damage it, cell

phones can be the most cost effective means of communication. If an

event damages cellular towers, temporary towers can be erected. They

can also be placed in refugee camps. During the tsunami, Nortel installed

a system such as this to enable cellular communications in a ten-mile

radius of Banda Aceh

Page 20: Effective Supply Chain Model for Disaster Management

20 | P a g e

KEY LEARNING FROM THE SUPPLY CHAIN MODEL

From this Supply chain model, it can be derive that the following are the key features

of a Supply Chain necessary during a Disaster Situation

- Robust and Strong Supply Chain

- Agility (adjust & respond)

- Value (synergy of effectiveness & efficiency)

- Velocity (speedy recovery)

- Visibility

For a Disaster Management Supply chain model the lead time should be very less or

minimal

Logistics would need to have following characteristics: -

- It must move freight and people by multiple modes (Land, Sea, Air), through

different terminals.

- Distance travelled is often long.

- Transportation needs to be fast and flexible.

Procurement: The emergency suppliers should be always ready for delivering bulk

emergency goods for disaster emergency. So here the concept of quick and effective

supplier requirement is vital.

Concept of Cross Docking and in-transit merging should be used in the process of

transportation so as to save time and delivering adequate food and medical good to the

casualties

During a Disaster the main disturbance comes in the communication supply chain. So

an efficient communication process should be used. Currently available

communication options are Short Wave or HFRadio, VIHF Radio, Satellite

Communications etc. These options should be used to provide channel of

communication for the panicked people.

Disaster response plans should have the flexibility to handle adverse situations like

low POD throughput and large number of victims because the variability of POD

throughput and victims’ demand can be very high.

It is very much important to use effective logistics software to keep track of the

goods and progress of the rescue work.

Extended Point of Delivery & Relief should be spacious, convenient to reach for the

casualties

Page 21: Effective Supply Chain Model for Disaster Management

21 | P a g e

Centralized Database means that there would be a single database of information

that everybody would have access to. Information that would need to be stored in it

would be:

- Inventory details

- Requirements at disaster site

- Tracking information

- Disaster related information

Human and financial resources need to be mobilized by various humanitarian

organisations.

Effective Assessment is also very much necessary. It comprises of activities like

preparedness planning, survey and data collection, interpretation and forecasting,

reporting and monitoring

CONCLUDING REMARKS

The effectiveness of disaster preparedness and response is difficult to estimate due to many

uncertainties and dynamics involved in the supply chain, POD operations, progression of

disasters and behaviour of disaster victims. Simulation is a useful tool for analyzing, testing

and developing effective emergency response plans. Disaster relief supplies should be pre-

positioned close to the potential disaster area in order to have fast response and improved

coverage. Disaster response plans should have the flexibility to handle adverse situations like

low POD throughput and large number of victims because the variability of POD throughput

and victims’ demand can be very high. There should also be a capability of handling

shortage and surplus situations among PODs through more effective RSA dispatching and/or

cross levelling among PODs. An effective communication and information system is also

very much vital of effective disaster management.

Page 22: Effective Supply Chain Model for Disaster Management

22 | P a g e

REFERENCES

Proceedings of the 2009 Winter Simulation Conference M. D. Rossetti, R. R. Hill, B.

Johansson, A. Dunkin and R. G. Ingalls, eds. SIMULATING DISTRIBUTION OF

EMERGENCY RELIEF SUPPLIES FOR DISASTER RESPONSE OPERATIONS

By Young M. Lee, Soumyadip Ghosh, Markus Ett.

AHRQ. 2004. Bioterrorism and Other Public Health Emergencies: Tools and Models

for Planning and Preparedness: Com-munity-Based Mass Prophylaxis, A Planning

Guide for Public Health Preparedness, Agency for Healthcare Research and Quality.

<http://www.ahrq.gov/research/cbmprophyl/cbmpro.htm#down> [accessed March 25,

2008].

Aaby, K., J. Hermann, C. Jordan, M. Treadwell., and K. Wood. 2006. Montgomery

County’s Public Health Service Uses Operations Research to Plan Emergency Mass

Dispensing and Vaccination Clinics, Interfaces, 36(6), 567-579.

Baker, E. J. 1991. Hurricane Evacuation Behavior. International Journal of Mass

Emergencies and Disasters. 9(2), 287-310.

Bravata, D.M., Zaric, G.S., Holty, J-E.C., Brandeau, M.L., Wilhelm, E.R., McDonald,

K.M., and D.K. Owens. 2006. Reduc-ing Mortality from Anthrax Bioterrorism: Costs

and Benefits of Alternative Strategies for Stockpiling and Dispensing Medical and

Pharmaceutical Supplies,” Biosecurity and Bioterrorism, Biodefense Strategy,

Practice and Science, 4, 244-262.

Caggiano, K., J. Muckstadt, and J. Rappold. 2006. Integrated Real-Time Capacity and

Inventory Allocation for Reparable Service Parts in a Two-Echelon Supply System.

CDC. 2001. Smallpox Response Plan and Guidelines (Version 3.0). Centers for

Disease Control and Prevention (CDC).

<http://www.bt.cdc.gov/agent/smallpox/response-plan/index.asp> [accessed March

25, 2008].

Craft, D. L., L. M. Wein, and A. H. Wilkins. 2005. Analyzing Bioterror Response

Logistics: The Case of Anthrax. Manage-ment Science. 51(5), 679-694.

Ekici, A., P. Keshinocak, J. Swann. 2008. Pandemic Influenza Response, The

Proceedings of the 2008 Winter Simulation Conference, S. J. Mason, R. Hill, L.

Moench, and O. Rose, eds.

Graves, S., and S. Willems, 2003. Supply Chain Design: Safety Stock Placement and

Supply Chain Configuration.