A Two-Stage Scenario-Based Stochastic Programming Approach To Pre-Positioning Emergency Supplies
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A two-stage stochastic programming model with recourse for pre-positioning hurricane supples is presented in this paper. Companies face the difficult decision of where to strategically preposition emergency supplies in preparation for a variety of possible disasters. Uncertainty caused by factors, such as the path of a hurricane, is a major influence on demand for emergency supplies. The first stage of the model relates to finding th optimal allocation of supplies from one warehouse to a variety of geographically dispersed locations that will potentially be affected by an observed storm. The second stage (or recourse) problem is concerned with deriving the re-allocation of supplies among the locations once demands have been realized after the storm has passed. The result of the study provides a means for determining what inventory levels should be stocked at each location, and how re-distribution strategies should be carried out. Also, the result of the study indicates that the expected cost of the pre-positioning strategy is lower that the expected costs without a pre-positioning strategy.
Abstract
A two-stage stochastic programming model with recourse for pre-positioning hurricane supples is presented in this paper. Companies face the difficult decision of where to strategically preposition emergency supplies in preparation for a variety of possible disasters. Uncertainty caused by factors, such as the path of a hurricane, is a major influence on demand for emergency supplies. The first stage of the model relates to finding th optimal allocation of supplies from one warehouse to a variety of geographically dispersed locations that will potentially be affected by an observed storm. The second stage (or recourse) problem is concerned with deriving the re-allocation of supplies among the locations once demands have been realized after the storm has passed. The result of the study provides a means for determining what inventory levels should be stocked at each location, and how re-distribution strategies should be carried out. Also, the result of the study indicates that the expected cost of the pre-positioning strategy is lower that the expected costs without a pre-positioning strategy.
참고문헌 (10)
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