Extra-capacity versus protection for supply networks under attack

Naji Bricha and Mustapha Nourelfath

Reliability Engineering and System Safety, 2014, vol. 131, issue C, 185-196

Abstract: This article develops a game-theoretical model to deal with the protection of facilities, in the context of the capacitated fixed-charge location and capacity acquisition problem. A set of investment alternatives is available for direct protection of facilities. Furthermore, extra-capacity of neighbouring functional facilities can be used after attacks to avoid the backlog of demands and backorders. The proposed model considers a non-cooperative two-period game between the players, and an algorithm is presented to determine the equilibrium solution and the optimal defender strategy under capacity constraints. A method is developed to evaluate the utilities of the defender and the attacker. The benefit of the proposed approach is illustrated using a numerical example. The defence strategy of our model is compared to other strategies, and the obtained results clearly indicate the superiority of our model in finding the best trade-off between direct protection investment and extra-capacity deployment.

Keywords: Capacity; Protection; Facility; Attack; Damage; Vulnerability; Game theory; Contest (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reensy:v:131:y:2014:i:c:p:185-196

DOI: 10.1016/j.ress.2014.07.004

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