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Development of a Shipment Policy for Collection Centers

Author

Listed:
  • Irais Mora-Ochomogo

    (School of Engineering and Sciences, Tecnologico de Monterrey, Atizapan de Zaragoza 52926, Mexico)

  • Marco Serrato

    (Office of the Provost, University of Chicago, Chicago, IL 60637, USA)

  • Jaime Mora-Vargas

    (School of Engineering and Sciences, Tecnologico de Monterrey, Atizapan de Zaragoza 52926, Mexico)

  • Raha Akhavan-Tabatabaei

    (Sabanci Business School, Sabancı University, Istanbul 34956, Turkey)

Abstract

Natural disasters represent a latent threat for every country in the world. Due to climate change and other factors, statistics show that they continue to be on the rise. This situation presents a challenge for the communities and the humanitarian organizations to be better prepared and react faster to natural disasters. In some countries, in-kind donations represent a high percentage of the supply for the operations, which presents additional challenges. This research proposes a Markov Decision Process (MDP) model to resemble operations in collection centers, where in-kind donations are received, sorted, packed, and sent to the affected areas. The decision addressed is when to send a shipment considering the uncertainty of the donations’ supply and the demand, as well as the logistics costs and the penalty of unsatisfied demand. As a result of the MDP a Monotone Optimal Non-Decreasing Policy (MONDP) is proposed, which provides valuable insights for decision-makers within this field. Moreover, the necessary conditions to prove the existence of such MONDP are presented.

Suggested Citation

  • Irais Mora-Ochomogo & Marco Serrato & Jaime Mora-Vargas & Raha Akhavan-Tabatabaei, 2021. "Development of a Shipment Policy for Collection Centers," Mathematics, MDPI, vol. 9(12), pages 1-16, June.
    • Handle: RePEc:gam:jmathe:v:9:y:2021:i:12:p:1385-:d:575262
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    References listed on IDEAS

    as
    1. M. Ülkü & Kathryn Bell & Stephanie Wilson, 2015. "Modeling the impact of donor behavior on humanitarian aid operations," Annals of Operations Research, Springer, vol. 230(1), pages 153-168, July.
    2. L N Van Wassenhove, 2006. "Humanitarian aid logistics: supply chain management in high gear," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(5), pages 475-489, May.
    3. Cook, Robert A. & Lodree, Emmett J., 2017. "Dispatching policies for last-mile distribution with stochastic supply and demand," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 106(C), pages 353-371.
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