A Model on Emergency Resource Dispatch under Random Demand and Unreliable Transportation

Abstract

This paper develops an emergency resource dispatching model in which the demand for resource is random and the transportation channel can be unreliable. There is also a reliable but more costly transportation channel. A basic model is set up to optimize the expected total costs while ignoring the capacity constraint of reliable channel and the demand fill rate. We derive analytical solutions for the basic model and obtain managerial insights from them. The model is extended to incorporate the capacity constraint of reliable channel and the prescription of demand fill rate. A multi-period model framwork is also established on a more realistic multi-period situation.