A stochastic prepositioning model for distribution of disaster supplies considering lateral transshipment. (April 2021) - Wang, Yusheng
Abstract: This paper focuses on addressing uncertainties in disasters when considering lateral transshipment opportunities for pre-positioning relief supplies. To deal with uncertain demands the problem is formulated as a two-stage stochastic programming model, which decides simultaneously on the locations of relief facilities and the allocations of relief supplies to demand nodes. Meanwhile, different damage levels caused by disasters are considered and reflected by a survival rate of usable stocked relief items. Multiple types of supplies with various priorities, values and spaces are explored. A real-world case study based on the Gulf Coast region of the United States is conducted to illustrate the application of the developed model. By comparison with the direct shipment solution, the lateral transshipment solution is demonstrated to be more cost-effective and flexible. The sensitivity analysis of out-of-stock penalty cost and maximum travel distance provides managerial insights for relief agencies. Highlights: The lateral transshipment is incorporated into prepositioning of relief supplies. A two-stage stochastic programming model is developed for uncertainty in demand. Multiple types of relief supplies and different degrees of damage are considered. The transshipment plan is demonstrated to be more flexible and cost-effective. Sensitivity analyses based on case study provide practical managerial insights.