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Prepositioning supplies in preparation for disasters

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  • Campbell, Ann Melissa
  • Jones, Philip C.

Abstract

In this paper, we examine the decision of where to preposition supplies in preparation for a disaster, such as a hurricane or terrorist attack, and how much to preposition at a location. If supplies are located closer to the disaster, it can allow for faster delivery of supplies after the disaster. As a result of being closer, though, the supplies may be in a risky location if the disaster occurs. Considering these risks, we derive equations for determining the optimal stocking quantity and the total expected costs associated with delivering to a demand point from a supply point. We provide a sensitivity analysis to show how different parameters impact stocking levels and costs. We show how our cost model can be used to select the single best supply point location from a discrete set of choices and how it can be embedded within existing location algorithms to choose multiple supply points. Our computational experiments involve a variety of relationships between distance and risk and show how these can impact location decisions and stocking levels.

Suggested Citation

  • Campbell, Ann Melissa & Jones, Philip C., 2011. "Prepositioning supplies in preparation for disasters," European Journal of Operational Research, Elsevier, vol. 209(2), pages 156-165, March.
    • Handle: RePEc:eee:ejores:v:209:y:2011:i:2:p:156-165
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    References listed on IDEAS

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