Stochastic optimization for investment in facilities in emergency prevention

Shao-Long Hu, Chuan-Feng Han and Ling-Peng Meng

Transportation Research Part E: Logistics and Transportation Review, 2016, vol. 89, issue C, 14-31

Abstract: A coordinated approach is developed to integrate three preventive measures (i.e. building reinforcement, reinforcement of road networks, and facility location of relief supplies), with the objectives of minimizing budgets and risk-induced penalties. The Conditional Value-at-Risk is employed as a decision-making tool to evaluate diverse decisions of prevention based on the degree of risk aversion. Based on a real-world case of an earthquake, a series of scenarios were designed, and the applicability of the proposed model was studied. The coordinated approach for investing preventive measures is cost-efficient in helping reduce the impact of disaster on society.

Keywords: Disaster prevention; Emergency logistics; Network reliability; Stochastic programming; Conditional Value at Risk; Risk management (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (8)

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DOI: 10.1016/j.tre.2016.02.006

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