Abstract
We propose a two-stage location-routing model with recourse for integrated preparedness and response planning under uncertainty. The model is used for risk management in disaster situations where there are uncertainties in demand and the state of the infrastructure. We solve the two-stage model by converting it into a single-stage counterpart. The latter is then implemented in an illustrative example. Comparative analyses are run to investigate the (1) value of planning location and routing in a single model, (2) value of transshipment, (3) differences when an expected-value objective is used, and (4) value of transshipment in the expected-value model.
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