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Stochastic Dynamic Programming Solution of a Risk-Adjusted Disaster Preparedness and Relief Distribution Problem

In: Operations Research Proceedings 2014

Author

Listed:
  • Ebru Angün

    (Galatasaray University)

Abstract

This chapter proposes a multistage stochastic optimization framework that dynamically updates the purchasing and distribution decisions of emergency commodities in the aftermath of an earthquake. Furthermore, the models consider the risk of exceeding the budget levels at any stage through chance constraints, which are then converted to Conditional Value-at-Risk constraints. Compared to the previous papers, our framework provides the flexibility of adjusting the level of conservativeness to the users by changing risk related parameters. Under some conditions, the resulting linear programming problems are solved through the Stochastic Dual Dynamic Programming algorithm. The preliminary numerical results are encouraging.

Suggested Citation

  • Ebru Angün, 2016. "Stochastic Dynamic Programming Solution of a Risk-Adjusted Disaster Preparedness and Relief Distribution Problem," Operations Research Proceedings, in: Marco Lübbecke & Arie Koster & Peter Letmathe & Reinhard Madlener & Britta Peis & Grit Walther (ed.), Operations Research Proceedings 2014, edition 1, pages 9-15, Springer.
    • Handle: RePEc:spr:oprchp:978-3-319-28697-6_2
    DOI: 10.1007/978-3-319-28697-6_2
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