Inventory Planning and Coordination in Disaster Relief Efforts

Abstract

This research proposes a stochastic programming model to determine how supplies should be positioned and distributed among a network of cooperative warehouses. The model incorporates constraints that enforce equity in service while also considering traffic congestion resulting from possible evacuation behavior and time constraints for providing effective response. We make use of short-term information (e.g. hurricane forecasts) to more effectively preposition supplies in preparation for their distribution at an operational level. Through an extensive computational study we characterize the conditions under which prepositioning is beneficial as well as discuss the relationship between inventory placement capacity and coordination within the network. (C) 2012 Elsevier B.V. All rights reserved.