A Multi-stage Stochastic Programming Approach for Pre-positioning of Relief Supplies

Abstract: Pre-positioning of relief supplies is an important aspect of disaster operations management that aims at decreasing the response time by advancing procurement and storage of needed supplies. In this paper we consider commodity life-time period with the related costs in keeping the commodity and removing it from the storage when it is close to expiration (i.e. holding and removal cost). We develop a multi-stage stochastic programming model for pre-positioning of relief supplies, which provides relief agencies insight on how to have dynamically control inventories due to uncertain demands when disasters (e.g., hurricane or earthquake) occur. We also present a case study based on mainland United States to illustrate the proposed model as well as provide managerial insights to relief agencies.