A study of stochastic optimization problem for humanitarian supply chain management

Abstract

Due to the frequency increase of natural disasters such as the earthquake and tsunami, the humanitarian supply chain management (SCM) became an important topic for scientific research. This paper proposes a two-stage stochastic model to optimize the cost of the whole relief process under uncertainty about demand, pre-positioned stocks and the condition of the transportation network. Many factors are considered such as fleet size, route availability and the extra stocking amount. The model also requires that in each scenario the satisfied proportion should be at least meet the lowest satisfaction value, which is decided by the properties of each area and the event. A case study application is used to illustrate the model and how it supports an emergency relief strategy.