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Inventory policies for humanitarian aid during hurricanes

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  • Consuelos Salas, Laura
  • Robles Cárdenas, Manuel
  • Zhang, Muhong
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    Abstract

    In this work we present a stochastic programming model minimizing costs, to support the decision process of inventory policy which best satisfies the demand for food in shelters when hurricane winds are about to impact a town. In this model we consider perishable products as well as the first in first out (FIFO) system for their consumption. In order to make the model closer to reality ordering cost is time-varying and we add a penalty cost in case the shortage exceeds a known limit for two days in a row. Finally the cost to dispose of expired food is greater than the purchase cost of the product since throwing away food has ethical implications. Starting from a stochastic programming model, we present a procedure to transform it to a deterministic mixed integer programming model (MIP) with non-convex objective function over its entire domain, which closely states the situation in reality. Preliminary computational results and discussion are presented.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0038012112000079
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    Bibliographic Info

    Article provided by Elsevier in its journal Socio-Economic Planning Sciences.

    Volume (Year): 46 (2012)
    Issue (Month): 4 ()
    Pages: 272-280

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    Handle: RePEc:eee:soceps:v:46:y:2012:i:4:p:272-280

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    Web page: http://www.elsevier.com/locate/seps

    Related research

    Keywords: Inventory policies; Emergency management; Hurricane; Mixed integer programming model; Perishable products inventory; Stochastic programming model;

    References

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    1. Taskin, Selda & Lodree Jr., Emmett J., 2010. "Inventory decisions for emergency supplies based on hurricane count predictions," International Journal of Production Economics, Elsevier, vol. 126(1), pages 66-75, July.
    2. Bhattacharjee, Sudip & Ramesh, R., 2000. "A multi-period profit maximizing model for retail supply chain management: An integration of demand and supply-side mechanisms," European Journal of Operational Research, Elsevier, vol. 122(3), pages 584-601, May.
    3. Altay, Nezih & Green III, Walter G., 2006. "OR/MS research in disaster operations management," European Journal of Operational Research, Elsevier, vol. 175(1), pages 475-493, November.
    4. Singh, Sachin & McAllister, Charles D. & Rinks, Dan & Jiang, Xiaoyue, 2010. "Implication of risk adjusted discount rates on cycle stock and safety stock in a multi-period inventory model," International Journal of Production Economics, Elsevier, vol. 123(1), pages 187-195, January.
    5. Clay Whybark, D., 2007. "Issues in managing disaster relief inventories," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 228-235, July.
    6. Zhang, Dali & Xu, Huifu & Wu, Yue, 2009. "Single and multi-period optimal inventory control models with risk-averse constraints," European Journal of Operational Research, Elsevier, vol. 199(2), pages 420-434, December.
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