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Stochastic optimization for investment in facilities in emergency prevention

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  • Hu, Shao-Long
  • Han, Chuan-Feng
  • Meng, Ling-Peng

Abstract

A coordinated approach is developed to integrate three preventive measures (i.e. building reinforcement, reinforcement of road networks, and facility location of relief supplies), with the objectives of minimizing budgets and risk-induced penalties. The Conditional Value-at-Risk is employed as a decision-making tool to evaluate diverse decisions of prevention based on the degree of risk aversion. Based on a real-world case of an earthquake, a series of scenarios were designed, and the applicability of the proposed model was studied. The coordinated approach for investing preventive measures is cost-efficient in helping reduce the impact of disaster on society.

Suggested Citation

  • Hu, Shao-Long & Han, Chuan-Feng & Meng, Ling-Peng, 2016. "Stochastic optimization for investment in facilities in emergency prevention," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 89(C), pages 14-31.
    • Handle: RePEc:eee:transe:v:89:y:2016:i:c:p:14-31
    DOI: 10.1016/j.tre.2016.02.006
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    3. Zhizhu Lai & Qun Yue & Zheng Wang & Dongmei Ge & Yulong Chen & Zhihong Zhou, 2022. "The min-p robust optimization approach for facility location problem under uncertainty," Journal of Combinatorial Optimization, Springer, vol. 44(2), pages 1134-1160, September.
    4. 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).
    5. Yücel, E. & Salman, F.S. & Arsik, I., 2018. "Improving post-disaster road network accessibility by strengthening links against failures," European Journal of Operational Research, Elsevier, vol. 269(2), pages 406-422.
    6. Hu, Shaolong & Hu, Qingmi & Tao, Sha & Dong, Zhijie Sasha, 2023. "A multi-stage stochastic programming approach for pre-positioning of relief supplies considering returns," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    7. Zhong, Shaopeng & Cheng, Rong & Jiang, Yu & Wang, Zhong & Larsen, Allan & Nielsen, Otto Anker, 2020. "Risk-averse optimization of disaster relief facility location and vehicle routing under stochastic demand," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).

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