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OR Spectrum

, Volume 40, Issue 1, pp 187–231 | Cite as

Stochastic last mile relief network design with resource reallocation

  • Nilay NoyanEmail author
  • Gökçe Kahvecioğlu
Regular Article

Abstract

We study a last mile distribution network design problem for situations where there exist local distribution centers (LDCs) with prepositioned supplies. Given the information on the existing pre-disaster relief network, the problem determines the locations and capacities of LDCs and points of distribution in the relief network, while capturing the uncertain aspects of the post-disaster environment. We introduce a new accessibility metric and develop a two-stage stochastic programming model that would allow more accessible and equitable distribution of relief supplies. Since solving the proposed stochastic optimization model is computationally challenging, we employ a scenario decomposition-based branch-and-cut algorithm. We perform a computational study—based on the real-world data from the 2011 Van earthquake in Turkey—to provide insights about the model and demonstrate the effectiveness of the solution method.

Keywords

Stochastic programming Humanitarian logistics Relief network design Facility location Inventory reallocation Accessibility Equity L-shaped Decomposition Branch-and-cut 

Notes

Acknowledgements

We thank Semih Atakan from the University of Southern California for his valuable advice on the implementation of the solution method. We thank Burcu Balcik and Gabor Rudolf for their valuable comments. The first author was supported in part by The Scientific and Technological Research Council of Turkey (TUBITAK) Career Grant #111M543, and the second author was partially supported by the TUBITAK BIDEB program. We also thank the anonymous referees for their valuable feedback.

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2017

Authors and Affiliations

  1. 1.Industrial Engineering ProgramSabancı UniversityTuzla, IstanbulTurkey
  2. 2.Industrial Engineering and Management SciencesNorthwestern UniversityEvanstonUSA

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