Robust bi-level optimization of relief logistics operations

摘要

Highlights•A hierarchical decision processes with two levels of decision as a robust bi-level optimization model.•Addressing both supply risk and relief items demand coverage robustness.•Optimizing relief operating costs as well as considering penalty cost for unsatisfied victims demand.•TOPSIS method is employed to identify candidate suppliers with lower risk.AbstractIn this paper, a robust bi-level optimization model is developed for a supply–distribution relief network under uncertainty in demand and supply parameters. It optimizes the relief operating costs as well as considering a penalty term for unsatisfied victims’ demands. Moreover, the proposed framework optimizes the relief commodity flow in a relief chain along with the supply risk minimization by identifying the suppliers with a lower risk. This paper proposes an integrated optimization method in which the supply risk value for each supplier is obtained via the TOPSIS method. Next, these values are utilized in a robust bi-level model to select appropriate suppliers and allocate orders. Finally, the robustness and effectiveness of the proposed model are demonstrated by a case of flood disaster.