Funds allocation in NPOs: the role of administrative cost ratios

Performance measurement of Non-Profit Organizations (NPOs) is of increasing importance for aid agencies, policy-makers and donors. A widely used benchmark for measuring the efficiency of NPOs is the overhead cost ratio, consisting of the total money spent on administration and fundraising relative to the budget. Donors generally favor a lower overhead cost ratio as it ensures that more Money directly reaches beneficiaries. Unlike fundraising expenses, administrative costs do not contribute to advertising the actions of an NPO even though they account for a significant proportion of overhead cost. Reducing administrative expenses is a logical consequence from a financial viewpoint, but might negatively affect NPOs through the resulting administrative capacities. This phenomenon is known as "Nonprofit Starvation Cycle" This work provides an analytical framework for analyzing NPO decision making concerning administrative costs. The paper provides answers to important research questions on the optimal level of administrative spending, the influencing factors and the effects of available information on NPOs. The research shows that focusing on financial performance measurements can result in reduced utility created for NPOs. Less transparency often leads to increased utility for NPOs, but more transparency can increase NPOs' utility if the information available exceeds a certain threshold. Fluctuating donations are challenging for NPOs' planning and may Impact administrative capacities negatively

Disaster relief inventory management: horizontal cooperation between humanitarian organizations

Cooperation among humanitarian organizations has attracted increasing attention to enhance effectiveness and efficiency of relief supply chains. Our research focuses on horizontal cooperation in inventory management which is currently implemented in the United Nations Humanitarian Response Depot (UNHRD) network. The present work follows a two-step research approach, which involves collection of empirical data and quantitative modeling to examine and overcome the coordination challenges of the network. Our interviews with members of the network identified several managerial issues for sustainable cooperative inventory management that the UNHRD network pursues. Using a newsvendor model in the context of non-cooperative game theory, our research has explored member humanitarian organizations' incentive of joining the network, a coordination mechanism which achieves system optimality, and impacts of members' decisions about stock rationing. Our results indicate that behaviors of member HOs do not necessarily align with the UNHRD's expectation. Our results suggest that for system optimality, a system coordinator should carefully assess the circumstances, including demand coefficient and stock rationing. Our research also proposes a policy priority for the first-best system optimal inventory management

A unified complex network framework for environmental decision -making with applications to green logistics and electronic waste recycling

In this dissertation, I developed a unified complex network framework for environmental decision-making. I focused on complex network systems arising in the context of green logistics, including global supply chains, and electronic waste recycling. The framework that I developed is able to handle many decision-makers at the tiers of the networks, and enables the prediction of the flows of the materials between tiers as well as the prices at the tiers, along with the emissions generated, and the incurred costs and profits. I first developed a theoretical framework for supply chain networks with environmental concerns in the context of decision-making in the Information Age today. I allowed different decision-makers to weight the criteria (including the environmental ones) in distinct fashion. Subsequently, I generalized the original model to a global supply chain network model which included environmental criteria, electronic commerce, and risk management. I then developed an integrated reverse supply chain management framework that allows for the modeling, analysis, and computation of the material flows as well as the prices associated with the different tiers in the multitiered electronic recycling network. I also extended this model in order to deal with the environmental risk caused by hazardous material generated from the recycling processes. I assumed that the environmental risk due to hazardous material depends on the amount of residual hazardous material that is not extracted from electronic wastes by the processor as well as on the storage amount of hazardous waste that is not disposed yet by the hazardous material disposer. The models and computational methods were based on the methodologies of variational inequality theory for the study of the statics (cf. Nagurney (1999)) and projected dynamical systems for the dynamics (cf. Nagurney and Zhang (1996))

Reverse supply chain management and electronic waste recycling: A multitiered network equilibrium framework for e-cycling

In this paper, we develop an integrated framework for the modeling of reverse supply chain management of electronic waste, which includes recycling. We describe the behavior of the various decision-makers, consisting of the sources of electronic waste, the recyclers, the processors, as well as the consumers associated with the demand markets for the distinct products. We construct the multitiered e-cycling network equilibrium model, establish the variational inequality formulation, whose solution yields the material flows as well as the prices, and provide both qualitative properties of the equilibrium pattern as well as numerical examples that are solved using the proposed algorithm

Dynamics of Disasters: Algorithmic Approaches and Applications 3

As an alternative to commodity-based programming (in-kind aid), Cash Transfer Programming is attracting both humanitarian organizations’ and institutional donors’ attention. Unlike in-kind aid, Cash Transfer Programming transfers purchasing power directly to beneficiaries in the form of currency or vouchers for them to obtain goods and/or services directly from the local market. In distributing currency to beneficiaries, the private sector, especially financial service providers, plays a prominent role, due to the humanitarian sector’s limited relevant resources. The present work unveils challenges for the private and humanitarian sectors, which hinder implementing Cash Transfer Programming. Based on primary and secondary qualitative data, the paper presents the main characteristics and the mechanisms of Cash Transfer Programming to explore how the private sector is involved with Cash Transfer Programming. Then, this study presents bottlenecks of reciprocal relationships between financial service providers and humanitarian organizations in Cash Transfer Programming.info:eu-repo/semantics/publishe

Supply chain supernetworks and environmental criteria

Abstract: In this paper, we develop a framework for the modeling and analysis of supply chain networks with electronic commerce in which the decision-makers are faced with environmental criteria. Specifically, we consider manufacturers who are involved in the production of a homogeneous product and can sell and have delivered the product not only to retailers but also directly to consumers. In addition, the manufacturers can transact with the retailers electronically. We assume that both the manufacturers and the retailers seek to maximize their profits, and are also faced with environmental criteria, which are weighted accordingly. The consumers, in turn, take both the prices charged by the retailers and the manufacturers, along with the associated transaction costs, as well as the emissions generated, in making their consumption decisions. We derive the equilibrium conditions and establish the finite-dimensional variational inequality formulation. We then utilize variational inequality theory to obtain qualitative properties of the equilibrium pattern. In addition, we propose a continuous time adjustment process for the study of the disequilibrium dynamics and establish that the set of stationary points of the resulting projected dynamical system coincides with the set of solutions of the variational inequality problem. Finally, we apply an algorithm for the determination of equilibrium prices and product shipments as well as the emissions generated in several supply chain examples. This paper captures multicriteria decision-making as regards the environment in the context of supply chains with electronic commerce. Key words: supply chains, environment, multicriteria decision-making, network equilibrium, variational inequalities

Reverse supply chain management and electronic waste recycling: a multitiered network equilibrium framework for e-cycling

In this paper, we develop an integrated framework for the modeling of reverse supply chain management of electronic waste, which includes recycling. We describe the behavior of the various decision-makers, consisting of the sources of electronic waste, the recyclers, the processors, as well as the consumers associated with the demand markets for the distinct products. We construct the multitiered e-cycling network equilibrium model, establish the variational inequality formulation, whose solution yields the material flows as well as the prices, and provide both qualitative properties of the equilibrium pattern as well as numerical examples that are solved using the proposed algorithm.Reverse supply chain management E-cycling Recycling Electronics Multitiered networks Environment Waste management Reverse logistics Variational inequalities Network equilibrium

Statics and Dynamics of Global Supply Chain Networks with Environmental Decision-making

In this paper, we develop static and dynamic models of global supply chains as networks with three tiers of decision-makers: manufacturers, retailers, and consumers associated with the demand markets who compete within a tier but cooperate between tiers. The decision-makers may be based in the same or in different countries, may transact in different currencies, and are faced with different degrees of environmental concern. Moreover, we allow for electronic transactions in the form of electronic commerce between the decision-makers. The proposed supernetworkframework formalizes the modeling and theoretical analysis of such global supply chains and also enables the dynamic tracking of the evolution of the associated prices and product transactions (as well as the emissions) to the equilibrium state. Moreover, it measures the impacts on the environment associated with the behaviors of the decision-makers. Finally, we propose a discrete-time algorithm that allows for the discretization of the continuous time trajectories and that results in closed form expressions at each iteration

Toward resilient humanitarian cooperation: examining the performance of horizontal cooperation among humanitarian organizations using an agent-based modeling (ABM) approach

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Incentivizing at-risk production capacity building for COVID-19 vaccines

Funding Information: Our analysis reveals that the two opposing effects of a higher unit outsourcing price (or unit penalty cost) on the two parties’ interests under the outsourcing mode lead to managerial guideline 1(ii). The results also indicate that the developer's cost‐sharing funding would partially mitigate the possible insufficient at‐risk capacity building under the outsourcing mode, but it is not a perfect remedy. When the outsourcing mode results in a lower at‐risk capacity level than the integrated model, one cannot expect the developer to provide sufficient cost‐sharing funding to help achieve the optimal at‐risk capacity level under the integrated mode. To overcome the possible insufficient at‐risk capacity building under the outsourcing mode, financial support from a third party (e.g., public or private fund sources) is necessary to supplement the developer's insufficient cost‐sharing funding. Publisher Copyright: © 2021 Production and Operations Management SocietyOur study analyzes capacity management for promising vaccine candidates before regulatory approval (i.e., at-risk capacity building) in the presence of production outsourcing and different operational challenges: misaligned interests, possible ex post negotiations, asymmetric information between developers and manufacturers, and government involvement. We develop analytical models to compare two vaccine production modes: (1) the integrated mode (a single company determines the at-risk capacity and produces in-house) and (2) the outsourcing mode (a manufacturer determines the at-risk capacity and a developer determines a funding level to share the capacity-building cost). Our study reveals that outsourcing can achieve a higher at-risk capacity only if it can achieve sufficient cost savings compared to the integrated mode. Our research also proves that both vaccine production modes tend to underinvest in the at-risk capacity. Following this, we suggest measures to improve the at-risk capacity building in both vaccine production modes. Our signaling game model reveals that a developer with high competence cannot always send credible signals of its true competence level to the manufacturer. Our incomplete contract model verifies that the relative performance of the two vaccine production modes is robust when ex post negotiation occurs under the outsourcing mode; however, the two parties may show incompatible preferences for the ex post negotiation. Our study also analyzes the optimal allocation of government financial support to development funding and capacity funding to incentivize at-risk capacity building. We present comprehensive guidelines for the different stakeholders to collectively contribute to ramping up the at-risk capacity of promising vaccines.Peer reviewe