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Multiobjective Prioritization Methodology and Decision Support System for Evaluating Inventory Enhancement Strategies for Disrupted Interdependent Sectors

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  • Joanna Resurreccion
  • Joost R. Santos

Abstract

Disruptions in the production of commodities and services resulting from disasters influence the vital functions of infrastructure and economic sectors within a region. The interdependencies inherent among these sectors trigger the faster propagation of disaster consequences that are often associated with a wider range of inoperability and amplified losses. This article evaluates the impact of inventory‐enhanced policies for disrupted interdependent sectors to improve the disaster preparedness capability of dynamic inoperability input‐output models (DIIM). In this article, we develop the dynamic cross‐prioritization plot (DCPP)—a prioritization methodology capable of identifying and dynamically updating the critical sectors based on preference assignments to different objectives. The DCPP integrates the risk assessment metrics (e.g., economic loss and inoperability), which are independently analyzed in the DIIM. We develop a computer‐based DCPP tool to determine the priority for inventory enhancement with user preference and resource availability as new dimensions. A baseline inventory case for the state of Virginia revealed a high concentration of (i) manufacturing sectors under the inoperability objective and (ii) service sectors under the economic loss objective. Simulation of enhanced inventory policies for selected critical manufacturing sectors has reduced the recovery period by approximately four days and the expected total economic loss by $33 million. Although the article focuses on enhancing inventory levels in manufacturing sectors, complementary analysis is recommended to manage the resilience of the service sectors. The flexibility of the proposed DCPP as a decision support tool can also be extended to accommodate analysis in other regions and disaster scenarios.

Suggested Citation

  • Joanna Resurreccion & Joost R. Santos, 2012. "Multiobjective Prioritization Methodology and Decision Support System for Evaluating Inventory Enhancement Strategies for Disrupted Interdependent Sectors," Risk Analysis, John Wiley & Sons, vol. 32(10), pages 1673-1692, October.
    • Handle: RePEc:wly:riskan:v:32:y:2012:i:10:p:1673-1692
    DOI: 10.1111/j.1539-6924.2011.01779.x
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    References listed on IDEAS

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    1. Joost R. Santos & Yacov Y. Haimes & Chenyang Lian, 2007. "A Framework for Linking Cybersecurity Metrics to the Modeling of Macroeconomic Interdependencies," Risk Analysis, John Wiley & Sons, vol. 27(5), pages 1283-1297, October.
    2. Stephanie E. Chang & Timothy L. McDaniels & Joey Mikawoz & Krista Peterson, 2007. "Infrastructure failure interdependencies in extreme events: power outage consequences in the 1998 Ice Storm," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 41(2), pages 337-358, May.
    3. Adam Rose & Shu‐Yi Liao, 2005. "Modeling Regional Economic Resilience to Disasters: A Computable General Equilibrium Analysis of Water Service Disruptions," Journal of Regional Science, Wiley Blackwell, vol. 45(1), pages 75-112, February.
    4. Chenyang Lian & Joost R. Santos & Yacov Y. Haimes, 2007. "Extreme Risk Analysis of Interdependent Economic and Infrastructure Sectors," Risk Analysis, John Wiley & Sons, vol. 27(4), pages 1053-1064, August.
    5. M. F. Leung & J. R. Santos & Y. Y. Haimes, 2003. "Risk Modeling, Assessment, and Management of Lahar Flow Threat," Risk Analysis, John Wiley & Sons, vol. 23(6), pages 1323-1335, December.
    6. Yasuhide Okuyama & Geoffrey J. D. Hewings & Michael Sonis, 2004. "Measuring Economic Impacts of Disasters: Interregional Input-Output Analysis Using Sequential Interindustry Model," Advances in Spatial Science, in: Yasuhide Okuyama & Stephanie E. Chang (ed.), Modeling Spatial and Economic Impacts of Disasters, chapter 5, pages 77-101, Springer.
    7. Stanley Kaplan & B. John Garrick, 1981. "On The Quantitative Definition of Risk," Risk Analysis, John Wiley & Sons, vol. 1(1), pages 11-27, March.
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    Cited by:

    1. Dan Wei & Zhenhua Chen & Adam Rose, 2020. "Evaluating the role of resilience in reducing economic losses from disasters: A multi‐regional analysis of a seaport disruption," Papers in Regional Science, Wiley Blackwell, vol. 99(6), pages 1691-1722, December.
    2. Joost R. Santos & Lucia Castro Herrera & Krista Danielle S. Yu & Sheree Ann T. Pagsuyoin & Raymond R. Tan, 2014. "State of the Art in Risk Analysis of Workforce Criticality Influencing Disaster Preparedness for Interdependent Systems," Risk Analysis, John Wiley & Sons, vol. 34(6), pages 1056-1068, June.
    3. Abdulaziz T. Almaktoom, 2017. "Stochastic Reliability Measurement and Design Optimization of an Inventory Management System," Complexity, Hindawi, vol. 2017, pages 1-9, August.
    4. Krista Danielle S. Yu & Raymond R. Tan & Kathleen B. Aviso & Michael Angelo B. Promentilla & Joost R. Santos, 2014. "A Vulnerability Index For Post-Disaster Key Sector Prioritization," Economic Systems Research, Taylor & Francis Journals, vol. 26(1), pages 81-97, March.
    5. Chen, Hao & Zhang, Wenfeng & Huang, Xiangting & Wang, Xin, 2024. "Estimating the dynamic economic impacts of oil supply disruptions on China: A case study of Malacca Strait block," Resources Policy, Elsevier, vol. 98(C).
    6. Linn Svegrup & Jonas Johansson & Henrik Hassel, 2019. "Integration of Critical Infrastructure and Societal Consequence Models: Impact on Swedish Power System Mitigation Decisions," Risk Analysis, John Wiley & Sons, vol. 39(9), pages 1970-1996, September.
    7. Zachary Walchuk & Kash Barker, 2013. "Analyzing interdependent impacts of resource sustainability," Environment Systems and Decisions, Springer, vol. 33(3), pages 391-403, September.
    8. Joost Santos & Christian Yip & Shital Thekdi & Sheree Pagsuyoin, 2020. "Workforce/Population, Economy, Infrastructure, Geography, Hierarchy, and Time (WEIGHT): Reflections on the Plural Dimensions of Disaster Resilience," Risk Analysis, John Wiley & Sons, vol. 40(1), pages 43-67, January.
    9. Dimitrina S. Dimitrova & Vladimir K. Kaishev & Shouqi Zhao, 2015. "Modeling Finite‐Time Failure Probabilities in Risk Analysis Applications," Risk Analysis, John Wiley & Sons, vol. 35(10), pages 1919-1939, October.
    10. Joost R. Santos & Larissa May & Amine El Haimar, 2013. "Risk‐Based Input‐Output Analysis of Influenza Epidemic Consequences on Interdependent Workforce Sectors," Risk Analysis, John Wiley & Sons, vol. 33(9), pages 1620-1635, September.
    11. Jalal Ali & Joost R. Santos, 2015. "Modeling the Ripple Effects of IT‐Based Incidents on Interdependent Economic Systems," Systems Engineering, John Wiley & Sons, vol. 18(2), pages 146-161, March.

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