Emergency Material Inventory Model Construction Under Pre-payment Based On Cooperative Game Theory

Sudden natural disasters and public health incidents not only cause huge economic losses, but also cause serious negative effects on people's production and life. More serious is that it poses a challenge to human survival and development. Since the 20th century, sudden natural disasters and public health incidents have become one of the focuses in all sectors of the society. Researches on emergency management for preventing and dealing with the unexpected situation are becoming more and more intensive. Emergency logistics is a special logistics activity which mainly studies on how to supply the disaster area with emergency material timely and effectively. Emergency material reserve is one of the core works of emergency logistics management. After sudden natural disasters and public health incidents happened, sufficient emergency material can not only greatly reduce losses but also be a guarantee of victims'life.In the past, the government took many responsibilities for emergency material such as purchase, organization and store. Because emergency material management is a professional work, it would not only consume lots of manpower and material resources but also may lead to great scrapped loss due to the expiration date of emergency material. This paper aims to structuring inventory model that the government cooperates with suppliers in reserving emergency material. By establishing reasonable cooperation mechanism, the government cooperates with suppliers. With the advantage of suppliers'inventory management, the government and suppliers reserve emergency material and optimizes inventory model. It can not only reduce the overall cost, but also improve the effect of reserving of emergency material.On the basis of research achievements of emergency material reserves, the paper considers that the government cooperates with suppliers for emergency material reserve. An inventory model that the government pays partial payment of the goods in advance and the suppliers reserve emergency material was discussed. Besides, it establishes the cooperative deadline of this union and the proportion of the Pre-payment from the perspective of Cooperative Game. In this way, certain amount of emergency material could be reserved dynamically and the expiration date of emergency materials would be extended substantially in the premise of reducing government expenditure. Finally, a numerical example is used to verify the results of proposed model.