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Collaborative Prepositioning Network Design for Regional Disaster Response

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  • Burcu Balcik
  • Selene Silvestri
  • Marie‐Ève Rancourt
  • Gilbert Laporte

Abstract

We present a collaborative prepositioning strategy to strengthen the disaster preparedness of the Caribbean countries, which are frequently hit by hurricanes. Since different subsets of countries are affected in each hurricane season, significant risk pooling benefits can be achieved through horizontal collaboration, which involves joint ownership of prepositioned stocks. We worked with the intergovernmental Caribbean Disaster and Emergency Management Agency to design a collaborative prepositioning network in order to improve regional response capacity. We propose a novel insurance‐based method to allocate the costs incurred to establish and operate the proposed collaborative prepositioning network among the partner countries. We present a stochastic programming model, which determines the locations and amounts of relief supplies to store, as well as the investment to be made by each country such that their premium is related to the cost associated with the expected value and the standard deviation of their demand. We develop a realistic data set for the network by processing real‐world data. We conduct extensive numerical analyses and present insights that support practical implementation. We show that a significant reduction in total inventory can be achieved by applying collaborative prepositioning as opposed to a decentralized policy. Our results also demonstrate that reducing the replenishment lead time during the hurricane season and improving sea connectivity are essential to increasing the benefits resulting from the network.

Suggested Citation

  • Burcu Balcik & Selene Silvestri & Marie‐Ève Rancourt & Gilbert Laporte, 2019. "Collaborative Prepositioning Network Design for Regional Disaster Response," Production and Operations Management, Production and Operations Management Society, vol. 28(10), pages 2431-2455, October.
  • Handle: RePEc:bla:popmgt:v:28:y:2019:i:10:p:2431-2455
    DOI: 10.1111/poms.13053
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    Cited by:

    1. Vosooghi, Zeinab & Mirzapour Al-e-hashem, S.M.J. & Lahijanian, Behshad, 2022. "Scenario-based redesigning of a relief supply-chain network by considering humanitarian constraints, triage, and volunteers’ help," Socio-Economic Planning Sciences, Elsevier, vol. 84(C).
    2. Wang, Changjun & Chen, Shutong, 2020. "A distributionally robust optimization for blood supply network considering disasters," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 134(C).
    3. Xuehong Gao, 2022. "A bi-level stochastic optimization model for multi-commodity rebalancing under uncertainty in disaster response," Annals of Operations Research, Springer, vol. 319(1), pages 115-148, December.
    4. Sun, Huiping & Li, Yuchen & Zhang, Jianghua, 2022. "Collaboration-based reliable optimal casualty evacuation network design for large-scale emergency preparedness," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    5. Jon M. Stauffer & Subodha Kumar, 2021. "Impact of Incorporating Returns into Pre‐Disaster Deployments for Rapid‐Onset Predictable Disasters," Production and Operations Management, Production and Operations Management Society, vol. 30(2), pages 451-474, February.
    6. Kim E. Van Oorschot & Luk N. Van Wassenhove & Marianne Jahre, 2023. "Collaboration–competition dilemma in flattening the COVID‐19 curve," Production and Operations Management, Production and Operations Management Society, vol. 32(5), pages 1345-1361, May.
    7. Guo, Penghui & Zhu, Jianjun, 2023. "Capacity reservation for humanitarian relief: A logic-based Benders decomposition method with subgradient cut," European Journal of Operational Research, Elsevier, vol. 311(3), pages 942-970.
    8. Yaxin Huang & Xinyu Lou & Changqing Wang & Zhisong Chen, 2022. "Incentive Mechanism Design in Collaborative Management of Public Health Emergencies," Sustainability, MDPI, vol. 14(12), pages 1-25, June.
    9. Dönmez, Zehranaz & Kara, Bahar Y. & Karsu, Özlem & Saldanha-da-Gama, Francisco, 2021. "Humanitarian facility location under uncertainty: Critical review and future prospects," Omega, Elsevier, vol. 102(C).
    10. Magoua, Joseph Jonathan & Li, Nan, 2023. "The human factor in the disaster resilience modeling of critical infrastructure systems," Reliability Engineering and System Safety, Elsevier, vol. 232(C).
    11. Liu, Tongxin & Shao, Jianfang & Wang, Xihui, 2022. "Funding allocations for disaster preparation considering catastrophe insurance," Socio-Economic Planning Sciences, Elsevier, vol. 84(C).
    12. Anne M. Quarshie & Rudolf Leuschner, 2020. "Interorganizational Interaction in Disaster Response Networks: A Government Perspective," Journal of Supply Chain Management, Institute for Supply Management, vol. 56(3), pages 3-25, July.
    13. Yuli Zhang & Amber R. Richter & Jeyaveerasingam George Shanthikumar & Zuo‐Jun Max Shen, 2022. "Dynamic Inventory Relocation in Disaster Relief," Production and Operations Management, Production and Operations Management Society, vol. 31(3), pages 1052-1070, March.
    14. Dmitry Anokhin & Payman Dehghanian & Miguel A. Lejeune & Jinshun Su, 2021. "Mobility‐As‐A‐Service for Resilience Delivery in Power Distribution Systems," Production and Operations Management, Production and Operations Management Society, vol. 30(8), pages 2492-2521, August.
    15. Choi, Tsan-Ming, 2020. "Innovative “Bring-Service-Near-Your-Home” operations under Corona-Virus (COVID-19/SARS-CoV-2) outbreak: Can logistics become the Messiah?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 140(C).
    16. Wang, Jing & Cai, Jianping & Yue, Xiaohang & Suresh, Nallan C., 2021. "Pre-positioning and real-time disaster response operations: Optimization with mobile phone location data," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 150(C).
    17. Oscar Rodríguez-Espíndola, 2023. "Two-stage stochastic formulation for relief operations with multiple agencies in simultaneous disasters," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 45(2), pages 477-523, June.
    18. Jessica Rodríguez‐Pereira & Burcu Balcik & Marie‐Ève Rancourt & Gilbert Laporte, 2021. "A Cost‐Sharing Mechanism for Multi‐Country Partnerships in Disaster Preparedness," Production and Operations Management, Production and Operations Management Society, vol. 30(12), pages 4541-4565, December.
    19. Sengul Orgut, Irem & Freeman, Nickolas & Lewis, Dwight & Parton, Jason, 2023. "Equitable and effective vaccine access considering vaccine hesitancy and capacity constraints," Omega, Elsevier, vol. 120(C).

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