IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v40y2012i1p21-30.html
   My bibliography  Save this article

Hedging against disruptions with ripple effects in location analysis

Author

Listed:
  • Liberatore, Federico
  • Scaparra, Maria P.
  • Daskin, Mark S.

Abstract

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.

Suggested Citation

  • Liberatore, Federico & Scaparra, Maria P. & Daskin, Mark S., 2012. "Hedging against disruptions with ripple effects in location analysis," Omega, Elsevier, vol. 40(1), pages 21-30, January.
  • Handle: RePEc:eee:jomega:v:40:y:2012:i:1:p:21-30
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305048311000533
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:eee:reensy:v:94:y:2009:i:2:p:568-576 is not listed on IDEAS
    2. 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.
    3. 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.
    4. 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.
    5. Fred Glover, 1975. "Improved Linear Integer Programming Formulations of Nonlinear Integer Problems," Management Science, INFORMS, vol. 22(4), pages 455-460, December.
    6. 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.
    7. Ossama Kettani & Muhittin Oral, 1990. "Equivalent Formulations of Nonlinear Integer Problems for Efficient Optimization," Management Science, INFORMS, vol. 36(1), pages 115-119, January.
    8. (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.
    9. repec:eee:reensy:v:94:y:2009:i:5:p:913-921 is not listed on IDEAS
    10. repec:eee:reensy:v:95:y:2010:i:8:p:887-896 is not listed on IDEAS
    11. 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.
    12. 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.
    13. 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.
    14. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ivanov, Dmitry & Pavlov, Alexander & Pavlov, Dmitry & Sokolov, Boris, 2017. "Minimization of disruption-related return flows in the supply chain," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 503-513.
    2. Camacho-Collados, M. & Liberatore, F. & Angulo, J.M., 2015. "A multi-criteria Police Districting Problem for the efficient and effective design of patrol sector," European Journal of Operational Research, Elsevier, vol. 246(2), pages 674-684.
    3. Sarhadi, Hassan & Tulett, David M. & Verma, Manish, 2017. "An analytical approach to the protection planning of a rail intermodal terminal network," European Journal of Operational Research, Elsevier, vol. 257(2), pages 511-525.
    4. Espejo, Inmaculada & Marín, Alfredo & Rodríguez-Chía, Antonio M., 2015. "Capacitated p-center problem with failure foresight," European Journal of Operational Research, Elsevier, vol. 247(1), pages 229-244.
    5. Xie, Siyang & Li, Xiaopeng & Ouyang, Yanfeng, 2015. "Decomposition of general facility disruption correlations via augmentation of virtual supporting stations," Transportation Research Part B: Methodological, Elsevier, vol. 80(C), pages 64-81.
    6. F. Parvaresh & S. Hashemi Golpayegany & S. Moattar Husseini & B. Karimi, 2013. "Solving the p-hub Median Problem Under Intentional Disruptions Using Simulated Annealing," Networks and Spatial Economics, Springer, vol. 13(4), pages 445-470, December.
    7. Hasani, Aliakbar & Khosrojerdi, Amirhossein, 2016. "Robust global supply chain network design under disruption and uncertainty considering resilience strategies: A parallel memetic algorithm for a real-life case study," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 87(C), pages 20-52.
    8. Jabbarzadeh, Armin & Fahimnia, Behnam & Sheu, Jiuh-Biing & Moghadam, Hani Shahmoradi, 2016. "Designing a supply chain resilient to major disruptions and supply/demand interruptions," Transportation Research Part B: Methodological, Elsevier, vol. 94(C), pages 121-149.
    9. repec:eee:transe:v:102:y:2017:i:c:p:13-37 is not listed on IDEAS
    10. Li, Xiaopeng & Ouyang, Yanfeng & Peng, Fan, 2013. "A supporting station model for reliable infrastructure location design under interdependent disruptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 80-93.
    11. Ransikarbum, Kasin & Mason, Scott J., 2016. "Goal programming-based post-disaster decision making for integrated relief distribution and early-stage network restoration," International Journal of Production Economics, Elsevier, vol. 182(C), pages 324-341.
    12. Ramamoorthy, Prasanna & Jayaswal, Sachin & Sinha, Ankur & Vidyarthi, Navneet, 2016. "Hub Interdiction & Hub Protection problems: Model formulations & Exact Solution methods. (Revised)," IIMA Working Papers WP2016-10-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    13. Davood Shishebori & Lawrence Snyder & Mohammad Jabalameli, 2014. "A Reliable Budget-Constrained FL/ND Problem with Unreliable Facilities," Networks and Spatial Economics, Springer, vol. 14(3), pages 549-580, December.
    14. Cui, Jianxun & Zhao, Meng & Li, Xiaopeng & Parsafard, Mohsen & An, Shi, 2016. "Reliable design of an integrated supply chain with expedited shipments under disruption risks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 143-163.
    15. Salehi Sadghiani, N. & Torabi, S.A. & Sahebjamnia, N., 2015. "Retail supply chain network design under operational and disruption risks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 75(C), pages 95-114.
    16. Ivanov, Dmitry & Pavlov, Alexander & Dolgui, Alexandre & Pavlov, Dmitry & Sokolov, Boris, 2016. "Disruption-driven supply chain (re)-planning and performance impact assessment with consideration of pro-active and recovery policies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 90(C), pages 7-24.
    17. Starita, Stefano & Scaparra, Maria Paola, 2016. "Optimizing dynamic investment decisions for railway systems protection," European Journal of Operational Research, Elsevier, vol. 248(2), pages 543-557.
    18. Albareda-Sambola, Maria & Hinojosa, Yolanda & Puerto, Justo, 2015. "The reliable p-median problem with at-facility service," European Journal of Operational Research, Elsevier, vol. 245(3), pages 656-666.
    19. Verma, Manish & Gendreau, Michel & Laporte, Gilbert, 2013. "Optimal location and capability of oil-spill response facilities for the south coast of Newfoundland," Omega, Elsevier, vol. 41(5), pages 856-867.
    20. Shishebori, Davood & Yousefi Babadi, Abolghasem, 2015. "Robust and reliable medical services network design under uncertain environment and system disruptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 77(C), pages 268-288.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.