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Robust optimization for emergency logistics planning: Risk mitigation in humanitarian relief supply chains
Authors:Aharon Ben-Tal  Byung Do Chung  Supreet Reddy Mandala  Tao Yao
Institution:aFaculty of Industrial Engineering and Management, MINERVA Optimization Center, Technion - Israel Institute of Technology, Technion City, Haifa 32000, Israel;bThe Harold & Inge Marcus Department of Industrial and Manufacturing Engineering, Pennsylvania State University, University Park, PA 16802
Abstract:This paper proposes a methodology to generate a robust logistics plan that can mitigate demand uncertainty in humanitarian relief supply chains. More specifically, we apply robust optimization (RO) for dynamically assigning emergency response and evacuation traffic flow problems with time dependent demand uncertainty. This paper studies a Cell Transmission Model (CTM) based system optimum dynamic traffic assignment model. We adopt a min–max criterion and apply an extension of the RO method adjusted to dynamic optimization problems, an affinely adjustable robust counterpart (AARC) approach. Simulation experiments show that the AARC solution provides excellent results when compared to deterministic solution and sampling based stochastic programming solution. General insights of RO and transportation that may have wider applicability in humanitarian relief supply chains are provided.
Keywords:Robust optimization  Dynamic traffic assignment  Demand uncertainty  Emergency logistics
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