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...

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Veröffentlicht in:	Omega (Oxford) Jg. 40; H. 1; S. 21 - 30
Hauptverfasser:	Liberatore, Federico, Scaparra, Maria P., Daskin, Mark S.
Format:	Journal Article
Sprache:	Englisch
Veröffentlicht:	Kidlington Elsevier Ltd 2012 Elsevier Pergamon Press Inc
Schriftenreihe:	Omega
Schlagworte:	Applied sciences Computing Earthquakes Exact sciences and technology Ganzzahlige Optimierung Hedging Humanitäre Hilfe Integer programming Katastrophe Lieferkette Location Location analysis Location Integer programming Optimization Computing Mathematical programming Operational research and scientific management Operational research. Management science Operations Research Optimization Optimization algorithms Reliability theory. Replacement problems Studies Integer programming Computing Optimization Location Filtering Warranty Disease Expert system Interconnected power system Mixed integer programming Disaster System reliability Modeling Exact solution Weather Flood Earthquakes Fires Capacity constraint Pruning(tree) Search tree Localization Hurricane
ISSN:	0305-0483, 1873-5274
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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.
AbstractList	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. 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. [PUBLICATION ABSTRACT]
Author	Scaparra, Maria P. Liberatore, Federico Daskin, Mark S.
Author_xml	– sequence: 1 givenname: Federico surname: Liberatore fullname: Liberatore, Federico email: federico.liberatore@urjc.es, fl51@kent.ac.uk organization: Kent Business School, University of Kent, CT2 7PE Canterbury, Kent, UK – sequence: 2 givenname: Maria P. surname: Scaparra fullname: Scaparra, Maria P. email: M.P.Scaparra@kent.ac.uk organization: Kent Business School, University of Kent, CT2 7PE Canterbury, Kent, UK – sequence: 3 givenname: Mark S. surname: Daskin fullname: Daskin, Mark S. email: msdaskin@umich.edu organization: Department of Industrial and Operations Engineering, University of Michigan, 1205 Beal Avenue, Ann Arbor, MI 48109-2117, USA
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Keywords	Integer programming Computing Optimization Location Filtering Warranty Disease Expert system Interconnected power system Mixed integer programming Disaster System reliability Modeling Exact solution Weather Flood Earthquakes Fires Capacity constraint Pruning(tree) Search tree Localization Hurricane
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Snippet	Supply systems are subject to disruptions whose impact may not remain confined, but might actually propagate across the network. We consider the problem of...
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SubjectTerms	Applied sciences Computing Earthquakes Exact sciences and technology Ganzzahlige Optimierung Hedging Humanitäre Hilfe Integer programming Katastrophe Lieferkette Location Location analysis Location Integer programming Optimization Computing Mathematical programming Operational research and scientific management Operational research. Management science Operations Research Optimization Optimization algorithms Reliability theory. Replacement problems Studies
Title	Hedging against disruptions with ripple effects in location analysis
URI	https://dx.doi.org/10.1016/j.omega.2011.03.003 http://www.econis.eu/PPNSET?PPN=665987692 http://econpapers.repec.org/article/eeejomega/v_3a40_3ay_3a2012_3ai_3a1_3ap_3a21-30.htm https://www.proquest.com/docview/874339983
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