Stochastic last mile relief network design with resource reallocation

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Official URL: http://dx.doi.org/10.1007/s00291-017-0498-7

We study a last mile distribution network design problem for situations where there exist local distribution centers (LDCs) with pre-positioned supplies. Given the information on the existing pre-disaster relief network, the problem determines the locations and capacities of LDCs and points of distribution in the relief network, while capturing the uncertain aspects of the post-disaster environment. We introduce a new accessibility metric and develop a two-stage stochastic programming model that would allow more accessible and equitable distribution of relief supplies. Since solving the proposed stochastic optimization model is computationally challenging, we employ a scenario decomposition-based branch-and-cut algorithm. We perform a computational study -- based on the real-world data from the 2011 Van earthquake in Turkey -- to provide insights about the model and demonstrate the effectiveness of the solution method.