Hedging against disruptions with ripple effects in location analysis
Supply systems are subject to disruptions whose impact may not remain confined, but might actually propagate across the network. We consider the problem of optimally protecting a capacitated median system with a limited amount of protective resources subject to disruptions. Specifically, the type of disruption studied is characterized by correlation effects between the facilities, and may result in partial or complete disruption of the facilities involved. The model optimizes protection plans in the face of large area disruptions; i.e., disruptions that affect regions rather than single elements of the system. Examples may be earthquakes, storms, floods, fires, hurricanes, droughts, the spread of diseases, the spread of chemical agents, and cascading failures. The model is also a general framework for the family of fortification problems in the context of location analysis, as it includes uncapacitated facilities and single-target disruptions as special cases. We provide a tri-level formulation of the problem, and we propose an exact solution algorithm which makes use of a tree-search procedure to identify which facilities to protect. The procedure is enhanced by a dual-based pruning rule. The underlying disruption problem is reformulated as a single-level mixed-integer program. The algorithm has been tested on a dataset based on the 2009 L'Aquila earthquake. We verify empirically the efficiency of the pruning rule, and we provide an evaluation of the importance of considering propagation effects in the disruptions.
Volume (Year): 40 (2012)
Issue (Month): 1 (January)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:eee:reensy:v:94:y:2009:i:2:p:568-576 is not listed on IDEAS
- Alan Murray & Timothy Matisziw & Tony Grubesic, 2007. "Critical network infrastructure analysis: interdiction and system flow," Journal of Geographical Systems, Springer, vol. 9(2), pages 103-117, June.
- Bana e Costa, Carlos A. & Oliveira, Carlos S. & Vieira, Victor, 2008. "Prioritization of bridges and tunnels in earthquake risk mitigation using multicriteria decision analysis: Application to Lisbon," Omega, Elsevier, vol. 36(3), pages 442-450, June.
- Scaparra, Maria P. & Church, Richard L., 2008. "An exact solution approach for the interdiction median problem with fortification," European Journal of Operational Research, Elsevier, vol. 189(1), pages 76-92, August.
- Fred Glover, 1975. "Improved Linear Integer Programming Formulations of Nonlinear Integer Problems," Management Science, INFORMS, vol. 22(4), pages 455-460, December.
- Azaiez, M.N. & Bier, Vicki M., 2007. "Optimal resource allocation for security in reliability systems," European Journal of Operational Research, Elsevier, vol. 181(2), pages 773-786, September.
- Ossama Kettani & Muhittin Oral, 1990. "Equivalent Formulations of Nonlinear Integer Problems for Efficient Optimization," Management Science, INFORMS, vol. 36(1), pages 115-119, January.
- (Noel) Bryson, Kweku-Muata & Millar, Harvey & Joseph, Anito & Mobolurin, Ayodele, 2002. "Using formal MS/OR modeling to support disaster recovery planning," European Journal of Operational Research, Elsevier, vol. 141(3), pages 679-688, September.
- repec:eee:reensy:v:94:y:2009:i:5:p:913-921 is not listed on IDEAS
- repec:eee:reensy:v:95:y:2010:i:8:p:887-896 is not listed on IDEAS
- Garg, Manish & Smith, J. Cole, 2008. "Models and algorithms for the design of survivable multicommodity flow networks with general failure scenarios," Omega, Elsevier, vol. 36(6), pages 1057-1071, December.
- Chang, Ching-Ter, 2000. "An efficient linearization approach for mixed-integer problems," European Journal of Operational Research, Elsevier, vol. 123(3), pages 652-659, June.
- Konak, Abdullah & Bartolacci, Michael R., 2007. "Designing survivable resilient networks: A stochastic hybrid genetic algorithm approach," Omega, Elsevier, vol. 35(6), pages 645-658, December.
- 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.
When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:40:y:2012:i:1:p:21-30. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.