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Robust optimization for United States Department of Agriculture food aid bid allocations

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  • Paul, Jomon Aliyas
  • Wang, Xinfang (Jocelyn)

Abstract

The U.S. Department of Agriculture (USDA) currently uses a bidding system to determine carriers and suppliers that would partner in providing food aid annually in response to global emergencies and famine. We mimic the USDA approach via a robust optimization model featuring box and ellipsoid uncertainty frameworks to account for uncertainties in demand, supplier and carrier bid prices. Through a case study utilizing historical invoice data, we demonstrate our model applicability in improving ocean carrier and food supplier bid pricing strategy and similar supply chain network optimization problems. Through a validation algorithm we demonstrate the value of our robust models.

Suggested Citation

  • Paul, Jomon Aliyas & Wang, Xinfang (Jocelyn), 2015. "Robust optimization for United States Department of Agriculture food aid bid allocations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 82(C), pages 129-146.
    • Handle: RePEc:eee:transe:v:82:y:2015:i:c:p:129-146
    DOI: 10.1016/j.tre.2015.08.001
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    Cited by:

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    2. Wang, Xinfang (Jocelyn) & Paul, Jomon A., 2020. "Robust optimization for hurricane preparedness," International Journal of Production Economics, Elsevier, vol. 221(C).
    3. Paul, Jomon A. & Zhang, Minjiao, 2019. "Supply location and transportation planning for hurricanes: A two-stage stochastic programming framework," European Journal of Operational Research, Elsevier, vol. 274(1), pages 108-125.
    4. Paul, Jomon A. & Wang, Xinfang (Jocelyn), 2019. "Robust location-allocation network design for earthquake preparedness," Transportation Research Part B: Methodological, Elsevier, vol. 119(C), pages 139-155.
    5. Feyza G. Sahinyazan & Marie‐Ève Rancourt & Vedat Verter, 2021. "Food Aid Modality Selection Problem," Production and Operations Management, Production and Operations Management Society, vol. 30(4), pages 965-983, April.
    6. Fatemeh Keshavarz-Ghorbani & Seyed Hamid Reza Pasandideh, 2022. "A Lagrangian relaxation algorithm for optimizing a bi-objective agro-supply chain model considering CO2 emissions," Annals of Operations Research, Springer, vol. 314(2), pages 497-527, July.

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