Documente Academic
Documente Profesional
Documente Cultură
ABSAR AHMAD
FAIZAN ARIF
HAMZA BILAL
OMER ZAMAN
2012020
2012100
2012124
2012296
Executive Summary
Supply Chain of Aid Distribution organizations are one of the most complex supply chains all over the
world. In this report, we will critically analyze the aid distribution of UNHCR based on various aid
distribution supply chain models. Three models are chosen to analyze the supply chain of UNHCR i.e
Humanitarian Relationship Model, Last Mile Aid Distribution Model and Transshipment Model. Each
model is explained and then compared with UNHCR to compare between ideal model and real time
applied model. The later ones mathematical models and are explained using hypothetical examples. In
the end, conclusion is drawn and some future recommendations to better the aid distribution of UNHCR
are discussed.
TABLE OF CONTENTS
Executive Summary
INTRODUCTION
Hypothetical Example
Model Formulation
Application in UNHCR
Transshipment Model
Objective Function
Constraints
10
Analysis
11
Recommendations
11
References
14
WORDCOUNT
Appendix
15
16
INTRODUCTION
The Office of the United Nations High Commissioner for Refugees was established on December 14,
1950 by the United Nations General Assembly. The agency is mandated to lead and co-ordinate
international action to protect refugees and resolve refugee problems worldwide. Its primary purpose is
to safeguard the rights and well-being of refugees. It strives to ensure that everyone can exercise the
right to seek asylum and find safe refuge in another State, with the option to return home voluntarily,
integrate locally or to resettle in a third country. It also has a mandate to help stateless people
UNHCRs priority in Pakistan is to achieve lasting solutions for one of the largest and most protracted
refugee situations in the world. Pakistan continues to host approximately 1.5 million refugees. Most are
from Afghanistan and live in refugee villages and urban areas. Since March 2002, UNHCR has
facilitated the return of approximately 3.9 million registered Afghans from Pakistan.
UNHCR Presence
International NGOs
Development
Courage Development
Foundation
National NGOs
Tamer-e-Khalq Foundation
Taraqee Foundation Pakistan
Frontier Primary Health Care
Pakistan
Union Aid for Afghan Refugees
Pakistan
Water, Environment and
Sanitation Society Pakistan
Women Empowerment Organization
UNHCR hires consultants and specialized companies and their staff for projects.
UNHCR does not purchase from companies engaged directly or indirectly engaged in sale or
manufacture of anti-personnel mines or any similar operations. It also does not engage with companies
who do not follow the practices consistent with the rights set for th in the Convention on the Rights of
the Child.
UNHCRs Department of Emergency, Security and Supply (DESS) comprises the Procurement Service
(PS), and the Supply Management and Logistics Service (SMLS). These are responsible for global
supply chain management, operational support, planning and reporting on the use of resources.
Procurement in UNHCR
Last mile distribution model minimizes the transportation cost and unsatisfied or late satisfied customers
keeping in mind time and inventory constraints.
Hypothetical Example
In order to understand this model, lets take a hypothetical example. First of all, the list of required
variables is listed as follows
Model Formulation
Now, we will consider a
simple one LDC and two node
problem. Let us consider a
disaster has occurred and there
are 2000 affected families at
node 1 and 1000 at node 2.
LDC has two mini trucks with
capacity of 500 units and two
large trucks with capacity of
1000 units. The present
inventory at LDC is 3500 units.
Variable
K
R
N
N
Crk
Qk
Trk
dn
D
I
Description
Set of Vehicles
Set of Routes
Set of all demand locations
Set of demand locations visited on route r R
Cost of route r for vehicle k K
Capacity of vehicle k K (volume)
Duration (as a fraction of a day) of route r R for
vehicle k K
Demand at n location
Total Demand
Inventory at LDC
Cost for mini truck from LDC to node 1 is 1000 Rs. and for large truck is 2000 Rs. Similarly, Cost for
mini truck from LDC to node 2 is 1500 Rs. and for large truck is 2500 Rs. It is assumed that it is a one
day problem and 1 family requires 1 unit to satisfy its demands.
Given data
K
R
N
C11
C12
C21
C22
Q1
Q2
d1
d2
D
I
{1, 2}
{1, 2}
2
1000 rs
2000 rs
1500 rs
2500 rs
500 units
1000 units
2000 units
1000 units
3000 units
3500 units
(Total Cost) =
Since, total cost should be minimized, so we will select 2nd condition to transfer our supplies to the
affected area.
This is how Last mile Aid Distribution Model give us no. of vehicles and route schedules and optimizes
our cost. This was a very simple example. Real life examples are much more complex and require more
input data to optimize solution.
Application in UNHCR
UNHCR does not apply Last Mile Aid Distribution Model in mathematical form rather they apply it
based on their experience. They have contract with local transportation companies that deliver them
transport whenever the need arises. The local drivers are aware of every route and they know the
transportation cost for each route and they select the route with minimum cost. So, UNHCR does not
imply with Last Mile Distribution in mathematical form rather it relies on the experience of its drivers.
Transshipment Model
Transshipment model is a mathematical model which is usually used by business organizations for
minimizing the cost of transportations and making an efficient supply chain. Using a transshipment
model in aid distribution process could make the supply chain very cost effective and efficient. In this
mathematical model basically we define an objective function which defines the vision of aid
distribution.
Objective Function
So the objective function of this model is to meet unsatisfied demand accumulated over time. However,
cost cannot be completely ignored and so needs to be minimized and included in the objective function.
The Humanitarian Organizations Code of Conduct requires that aid must be delivered based on need
and not cost (Sphere Project, 2004; IRFC, 1994b).
Minimize
+ + +
..(1)
Variable w,x,y,z are basically weights that are defined by organization. For Example, if we put w=1,
x=0.001, y=0.01, z=1 in eq(1) we get
1 + 0.001 + 0.01 + 1
..(1)
this means that new objective function (1*) places much greater priority on minimizing need before
transportation and inventory costs.
The weight values of 1, 0.001, 0.01 and 1 in expression are somewhat arbitrary, and here simply reflect
the relative magnitude each particular component in the policy of the organization. We wished the items
to be delivered to recipients as quickly as possible, hence the high relative weighting given to Pkit Ukit.
The units of measurement of each component must also be taken into account. At first glance it may
appear that there is a greater weighting given to inventory than transport. However, the magnitude of the
transportation costs means that its weighting has to be scaled down in order for transportation costs to
approximately equal inventory costs. The danger with using weightings is that if there was a small
transportation cost and a large inventory then these weightings may be inappropriate leading to the
inventory component having a greater influence than the transportation costs weighting. The weightings
have been verified so that this problem should not occur.
Constraints
To establish initial conditions, constraint (A) and (B) specifies the current unsatisfied demand and
inventory of each item at each node, i.e., at the end of day 0:
0
0 =
. . . ()
0
0 =
. . . ()
Each time the model is re-run during the course of the relief operation, the values of parameters Uki0 and
Iki0 would be updated to reflect the situation at the time of planning.
0
=
. . . ()
Constraint (C) defines the amount of each item sent between pairs of nodes before the disaster has
occurred but which are still in transit and so have not yet arrived at the destination node.
1 all the variables
+ ,1 + ,1 = + + . . . ()
Constraint (D) ensures that no more items are sent than are received and/or taken from the local
inventory. Constraint (D) states that, on any given day and at any given node, the items arriving from
previous nodes, together with the items inherited from the previous days ending inventory, less the
unmet demand from the previous day, should equal in quantity the items sent to the next nodes, plus the
demand and the amount put into inventory, less any unsatisfied demand.
0.001
. . . ()
Constraint (E) ensures that there are enough vehicles to transport items between nodes. The coefficient
0.001 converts the item weights in kilograms to metric tons, the units of vehicle capacity.
0.001 . . . ()
Constraint (F) ensures that the weight of all inventory items is within the node capacity limits, again
multiplying by 0.001 to convert from kilograms to metric tons.
Thus our objective function (1) should be minimized under constraints (A-F).
Analysis
After applying these models, it is analyzed that UNHCR is following all three models. Since UNHCR
has direct relations with government of Pakistan, Humanitarian Relationship model is being fully
implemented as military and other aid agencies too have relationship with UNHCR. The two
mathematical models described are not implemented in mathematical form rather they are applied based
on the experience of the drivers.
Recommendations
As described in the report, UNHCR does not follow any mathematical model. It distributes its supplies
with the transportation companies and transportation cost is minimized by qualitative analysis of drivers.
The efficiency of aid distribution can be increased significantly if UNHCR apply any mathematical
model. Data should be gathered for all the routes and available vehicles. Excel sheets should be
generated to optimize transportation cost in any given condition. This will be very helpful and efficient
for UNHCR if they are able to apply it.
Topic
Main Argument
Unsatisfied need should be satisfied first irrespective of cost or any other factor.
It is interesting that a mathematical model that is normally used in business could also be
used for aid distribution.
Methodology
Implications
Relation to our
report
We have used this model to minimize the cost for a continuous running aid programe.
Title &
reference
Topic
Main Argument
The close relationship between governments, organizations, military and different aid
agencies work in close proximity towards providing aid to refugees and disaster affected
areas
Qualitative: The level of relationship between different players determine an efficient
distribution of necessary aid to the Individuals
Methodology
Implications
This model is implied such that each players works together to achieve a better future of the
people affected
Relation to our
report
Our report focusses on relation of UNHCR with various different players, it works with to
provide better aid and facilities to the Refugees
Topic
Main Argument
It is interesting to note that transportation system of aid organizations can also be made
highly cost efficient.
Methodology
Implications
Relation to our
report
We critically analyzed aid distribution of UNHCR based on Last Mile Distribution Model
References
ReliefWeb, (2015). UNHCR Global Appeal 2015 Update - Pakistan. [online] Available at:
http://reliefweb.int/report/pakistan/unhcr-global-appeal-2015-update-pakistan [Accessed 1 Oct. 2015].
Unhcr.org, (2015). UNHCR - Pakistan. [online] Available at:
http://www.unhcr.org/pages/49e487016.html [Accessed 1 Oct. 2015].
Wassenhove, V. (2012). Humanitarian Logistics and Supply Chain Management. 1st ed. [ebook] p.page
no,13. Available at:
http://www.springer.com/cda/content/document/cda_downloaddocument/9783642301858c2.pdf?SGWID=0-0-45-1340522-p174501768. [Accessed 1 Oct. 2015].
Rottkemper, B., Fischer, K. and Blecken, A. (2012). A transshipment model for distribution and
inventory relocation under uncertainty in humanitarian operations. Socio-Economic Planning Sciences,
46(1), pp.98-109.
Clark, A. and Culkin, B. (2013). A Network Transshipment Model for Planning Humanitarian Relief
Operations After a Natural Disaster. Decision Aid Models for Disaster Management and Emergencies,
pp.233-257.
Refugees, U. (2015). Contributions to UNHCR for Budget Year 2015, as at 18 September 2015. [online]
UNHCR. Available at: http://www.unhcr.org/558a639f9.html [Accessed 3 Dec. 2015].
Refugees, U. (2015). Doing Business with UNHCR (2015). [online] UNHCR. Available at:
http://www.unhcr.org/3b9203194.html [Accessed 1 Dec. 2015].
Refugees, U. (2015). Introduction to UNHCR Procurement, 2015. [online] UNHCR. Available at:
http://www.unhcr.org/54aeb4f39.html [Accessed 5 Dec. 2015].
Refugees, U. (2015). Pakistan Fact Sheet. [online] UNHCR. Available at:
http://www.unhcr.org/5000210e9.html [Accessed 1 Dec. 2015].
Refugees, U. (2015). UNHCR Global Report 2005 - Working with partners. [online] UNHCR. Available
at: http://www.unhcr.org/449267810.html [Accessed 1 Dec. 2015].
Refugees, U. (2015). UNHCR Global Report 2014 - Working in partnership. [online] UNHCR.
Available at: http://www.unhcr.org/5575a78a0.html [Accessed 5 Dec. 2015].
Refugees, U. (2015). UNHCR Handbook for Emergencies, Third Edition (complete publication).
[online] UNHCR. Available at: http://www.unhcr.org/472af2972.html [Accessed 1 Dec. 2015].
Sciencedirect.com, (2015). A transshipment model for distribution and inventory relocation under
uncertainty in humanitarian operations. [online] Available at:
http://www.sciencedirect.com/science/article/pii/S0038012111000474 [Accessed 5 Dec. 2015].
Anon, (2015). [online] Available at: http://www.unhcr.org/publ/PUBL/3d5123714.pdf [Accessed 2 Dec.
2015].
Anon, (2015). [online] Available at: http://www.unhcr.org/4c08f2cb9.pdf [Accessed 5 Dec. 2015].
Anon, (2015). [online] Available at: http://www.unhcr.org/42ad4db40.pdf [Accessed 5 Dec. 2015].
Anon, (2015). [online] Available at: http://www.unhcr.org/48490bc52.pdf [Accessed 5 Dec. 2015].
Anon, (2015). [online] Available at:
http://www.fsa.ulaval.ca/personnel/renaudj/pdf/Recherche/2013/Chap1.pdf [Accessed 5 Dec. 2015].
Anon, (2015). [online] Available at: http://unhcrpk.org/wp-content/.../12/UNHCR-Pak-Fact-Sheet-June2014.pdf [Accessed 3 Dec. 2015].
Anon, (2015). [online] Available at: http://www.cbrewster.com/papers/Roy_ICMR12.pdf [Accessed 1
Dec. 2015].
Anon, (2015). [online] Available at: http://www.optimization-online.org/DB_FILE/2015/06/4963.pdf
[Accessed 1 Dec. 2015].
APPENDIX
Humanitarian Relationship Model ................................................................................................ 17
TRANSSHIPMENT MODEL ...................................................................................................... 18
Abstract: .......................................................................................................................................................... 18
establishing their business continuity. Working to alleviate the economic impact of such disruptions
makes good business sense.
Within the company category, logistics service providers are excellent contributors at each stage of a
disaster-relief operation through their logistics and supply chain management core capabilities. Leading
international logistics service providers, such as Agility, DHL, FedEx, Maersk, TNT, and UPS, have
raised their importance in terms of the resources, assets, and knowledge shared with their humanitarian
counterparts.
TRANSSHIPMENT MODEL
Abstract:
The number of disasters and humanitarian crises which trigger humanitarian operations is everexpanding. Unforeseen incidents frequently occur in the aftermath of a disaster, when humanitarian
organizations are already in action. These incidents can lead to sudden changes in demand. As fast
delivery of relief items to the affected regions is crucial, the obvious reaction would be to deliver them
from neighboring regions. Yet, this may incur future shortages in those regions as well. Hence, an
integrated relocation and distribution planning approach is required, considering current demand and
possible future developments.
For this situation, a mixed-integer programming model is developed containing two objectives:
minimization of unsatisfied demand and minimization of operational costs. The model is solved by a
rolling horizon solution method. To model uncertainty, demand is split into certain demand which is
known, and uncertain demand which occurs with a specific probability. Periodically increasing penalty
costs are introduced for the unsatisfied certain and uncertain demand. A sensitivity analysis of the
penalty costs for unsatisfied uncertain demand is accomplished to study the trade-off between demand
satisfaction and logistical costs. The results for an example case show that unsatisfied demand can be
significantly reduced, while operational costs increased only slightly.
Indices
1.
2.
3.
4.
Sr
No
1.
2.
3.
4.
5.
6.
7.
8.
Description
The index t represents a day within the planning horizon. Thus t = 1, ..., 10 means a
ten-day horizon. t = 1 means current day. t = 0 means day before today & t = -1 the
day before that.
j,k
The indices j and k represents the network nodes in the supply chain such as
suppliers, airports, seaports, terminals, warehouses, and recipients etc.
Variables
Description
Capt
Iki0
Dkit
Uki0
V Cv
VAkvt
Lkjv
Tkjvit0
amount of item i already sent from node k to node j, using a vehicle of type v, i at
past times t =Lkjv,...,0
9.
10.
11.
12.
13.
14.
15.
Fkjv
fixed transport cost to include driver, fuel, maintenance etc. of using each vehicle
type v between node k and node j
Wi
Ck
Tkjvit
amount of item i sent from node k to node j, using vehicle type v, on day t
Vkjvt
Ikit
Ukit
delivery schedules
vehicle routes
the amount of emergency supplies delivered to demand locations during disaster relief
operations.
The required set of items required may vary greatly by situation depending on factors such as the type and the
impact of the disaster, demographics, and social and economic conditions of the area. We can categorize our
demand as Type1- and Type 2-based on their demand characteristics. Type 1 items are critical items for which
the demand occurs once at the beginning of the planning horizon It includes emergency supplies. Type 1
demands within a short period of time, due primarily to supply unavailability and vehicle capacity limitations. Once
Type 1 items arrive to the demand locations, they are immediately distributed to aid recipients. Therefore, we
assume that no Type 1 inventory is held at any demand location. Type 2 items are items that are consumed
regularly and whose demand occurs periodically over the planning horizon. Type 2 items are shipped to a
demand point, the excess amount can be held for consumption in future periods. We assume that any inventory
holding costs to store these items at the demand points is ignored, because it is likely negligible in relation to the
penalty costs associated with unsatisfied demand. The model serves an equal allocation principle, which
allocates supplies proportionally among the demand locations based on demand amounts and population
vulnerabilities, and balances the unsatisfied and late-satisfied demand among demand locations over time. The
relief system is likely unable to optimize the vehicle fleet, in terms of number, capacity, and compatibility after an
emergency. Hence, we assume that the vehicle fleet is comprised of a limited number of vehicles with different
characteristics. Each vehicle can be differentiated based on capacity, speed, and compatibility with various arcs in
the network. In practice, smaller trucks may be used to reach remote areas as roads may be poor or nonexistent,
while larger trucks may be used for areas that are closer and move easily reached. Demand parameters in our
model are based on the assessments done by relief agencies in the affected regions after the disaster
occurrence. The planning horizon parameter used in our model will be the worst case estimate. The length of the
planning horizon must be set to a length much longer than the expected relief horizon; the model will determine
when the delivery of relief supplies will be completed.
Mathematical Modeling
Following variables will be used in the model
Sets
T is set of days in the planning horizon; length of planning horizon.
K is set of vehicles.
R set of routes.
N set of all demand locations.
N set of demand locations visited on route r R.
E set of demand types: E = {1,2}.
Routing parameters
is cost of route r for vehicle k K.
Demand parameters
1 demand of type 1 at location i N (volume per planning horizon).
2 demand of type 2 at location i N on day t N (volume per day).
1
amount of type e E relief supplies arriving to the LDC at the beginning of day t T.
The objective function (1a) minimizes the sum of routing costs and penalty costs for the backordered
Type 1 demand and for the lost Type 2 demand. Constraints (1b) determine the maximum penalty cost
for each day and for each item type. Constraints (1c) find the fraction of unsatisfied (backordered) Type
1 demand at a location over time while (1d) find the fraction of unsatisfied (lost) Type 2 demand at a
location on a day. Constraints (1e) guarantee that the entire Type 1 demand is satisfied by the end of the
planning horizon. Constraints (1f) ensure that the total amount of relief items of each type delivered to
all. Locations on a day is less than or equal to the amount of supplies available at the LDC. Constraints
(1g) and (1h) are vehicle capacity constraints and vehicle time constraints, respectively. Constraints (1i)
ensure that the fraction of unsatisfied demand is between zero and one. Constraints (1j) set the beginning
inventory level to zero at each location for Type 2 items. Constraints (1k) and (1l) are non-negativity
constraints, and (1m) define the binary routing variable.