Location and inventory pre-positioning problem under uncertainty

Mingyao Qi, Ying Yang and Chun Cheng

Transportation Research Part E: Logistics and Transportation Review, 2023, vol. 177, issue C

Abstract: In humanitarian logistics, the location and inventory pre-positioning problem (LIPP), making decisions on facility location, inventory pre-positioning, and allocation, is critical to post-disaster rescue efficiency. Since post-disaster conditions are complex and uncertain, it is challenging for planners to make LIPP decisions and perform rescue activities. To reduce operational costs while also guaranteeing service levels to customers, it is necessary to take uncertainties into account when making decisions. This study explores a service-oriented LIPP under two types of uncertainties, i.e., uncertain customer demand and third-party supply. We propose a two-stage robust optimization framework to solve the problem, considering the service-level constraints and minimizing the total cost. We develop two algorithms to solve the problem. Specifically, a column-and-constraint generation algorithm is utilized to solve the original two-stage robust model, and an improved row generation algorithm is developed to tackle the affinely adjustable robust counterpart model. Simulation results show that both algorithms can provide satisfying solutions. A case study based on a power grid company in China is conducted to perform sensitivity analysis and compare models, producing several managerial insights.

Keywords: Humanitarian logistics; Location and inventory pre-positioning; Demand uncertainty; Third-party supply uncertainty; Service level (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1366554523002247
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transe:v:177:y:2023:i:c:s1366554523002247

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/bibliographic
http://www.elsevier. ... 600244/bibliographic

DOI: 10.1016/j.tre.2023.103236

Access Statistics for this article

Transportation Research Part E: Logistics and Transportation Review is currently edited by W. Talley

More articles in Transportation Research Part E: Logistics and Transportation Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().