Stochastic last mile relief network design with resource reallocation

Nilay Noyan () and Gökçe Kahvecioğlu ()
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Nilay Noyan: Sabancı University
Gökçe Kahvecioğlu: Northwestern University

OR Spectrum: Quantitative Approaches in Management, 2018, vol. 40, issue 1, No 7, 187-231

Abstract: Abstract We study a last mile distribution network design problem for situations where there exist local distribution centers (LDCs) with prepositioned supplies. Given the information on the existing pre-disaster relief network, the problem determines the locations and capacities of LDCs and points of distribution in the relief network, while capturing the uncertain aspects of the post-disaster environment. We introduce a new accessibility metric and develop a two-stage stochastic programming model that would allow more accessible and equitable distribution of relief supplies. Since solving the proposed stochastic optimization model is computationally challenging, we employ a scenario decomposition-based branch-and-cut algorithm. We perform a computational study—based on the real-world data from the 2011 Van earthquake in Turkey—to provide insights about the model and demonstrate the effectiveness of the solution method.

Keywords: Stochastic programming; Humanitarian logistics; Relief network design; Facility location; Inventory reallocation; Accessibility; Equity; L-shaped; Decomposition; Branch-and-cut (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (14)

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DOI: 10.1007/s00291-017-0498-7

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