Vehicle Supply Chains in Humanitarian Operations: Decentralization, Operational Mix and Earmarked Funding

Production and Operations Management
February 2014  Volume 23, Issue 2  Pages vi–x, 161–331
http://onlinelibrary.wiley.com/doi/10.1111/poms.2014.23.issue-2/issuetoc

Original Article
Vehicle Supply Chains in Humanitarian Operations: Decentralization, Operational Mix and Earmarked Funding
Maria Besiou1, Alfonso J. Pedraza-Martinez2, Luk N. Van Wassenhove3
DOI: 10.1111/poms.12215

Abstract
The work of international humanitarian organizations (IHOs) frequently involves operating in remote locations, decentralized decision-making, and the simultaneous implementation of development and disaster response programs. A large proportion of this work is funded by `earmarked’ donations, since donors often exhibit a preference for the programs they are willing to fund. From extensive research involving qualitative descriptions and quantitative data, and applying system dynamics methodology, we model vehicle supply chains (VSCs) in support of humanitarian field operations. Our efforts encompass the often-overlooked decentralized environment by incorporating the three different VSC structures that IHOs operate, as well as examining the entire mix of development and disaster response programs, and the specific (and virtually unexplored) effects of earmarked funding. Our results suggest that earmarked funding causes a real and negative operational impact on humanitarian disaster response programs in a decentralized setting.