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Static and dynamic resource allocation models for recovery of interdependent systems: application to the Deepwater Horizon oil spill

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  • Cameron MacKenzie
  • Hiba Baroud
  • Kash Barker

Abstract

Determining where and when to invest resources during and after a disruption can challenge policy makers and homeland security officials. Two decision models, one static and one dynamic, are proposed to determine the optimal resource allocation to facilitate the recovery of impacted industries after a disruption where the objective is to minimize the production losses due to the disruption. The paper presents necessary conditions for optimality for the static model and develops an algorithm that finds every possible solution that satisfies those necessary conditions. A deterministic branch-and-bound algorithm solves the dynamic model and relies on a convex relaxation of the dynamic optimization problem. Both models are applied to the Deepwater Horizon oil spill, which adversely impacted several industries in the Gulf region, such as fishing, tourism, real estate, and oil and gas. Results demonstrate the importance of allocating enough resources to stop the oil spill and clean up the oil, which reduces the economic loss across all industries. These models can be applied to different homeland security and disaster response situations to help governments and organizations decide among different resource allocation strategies during and after a disruption. Copyright Springer Science+Business Media New York 2016

Suggested Citation

  • Cameron MacKenzie & Hiba Baroud & Kash Barker, 2016. "Static and dynamic resource allocation models for recovery of interdependent systems: application to the Deepwater Horizon oil spill," Annals of Operations Research, Springer, vol. 236(1), pages 103-129, January.
    • Handle: RePEc:spr:annopr:v:236:y:2016:i:1:p:103-129:10.1007/s10479-014-1696-1
    DOI: 10.1007/s10479-014-1696-1
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    Cited by:

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    3. Magoua, Joseph Jonathan & Li, Nan, 2023. "The human factor in the disaster resilience modeling of critical infrastructure systems," Reliability Engineering and System Safety, Elsevier, vol. 232(C).
    4. Jingjing Kong & Chao Zhang & Slobodan P. Simonovic, 2019. "A Two-Stage Restoration Resource Allocation Model for Enhancing the Resilience of Interdependent Infrastructure Systems," Sustainability, MDPI, vol. 11(19), pages 1-16, September.
    5. Talebiyan, Hesam & Dueñas-Osorio, Leonardo, 2023. "Auctions for resource allocation and decentralized restoration of interdependent networks," Reliability Engineering and System Safety, Elsevier, vol. 237(C).
    6. Doan, Xuan Vinh & Shaw, Duncan, 2019. "Resource allocation when planning for simultaneous disasters," European Journal of Operational Research, Elsevier, vol. 274(2), pages 687-709.

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