Modeling for the equitable and effective distribution of food donations under stochastic receiving capacities

Abstract

ABSTRACTWe present and analyze stochastic models developed to facilitate the equitable and effective distribution of donated food by a regional food bank among the population at risk for hunger. Since demand typically exceeds the donated food supply, the food bank must distribute donated food in an equitable manner while minimizing food waste, leading to conflicting objectives. Distribution to beneficiaries in the service area is carried out by local charitable agencies, whose receiving capacities are stochastic, since they depend on factors (such as their budget and workforce) that vary significantly over time. We develop a single-period, two-stage stochastic model that ensures equitable distribution of food donations when the distribution decisions are made prior to observing capacities at the receiving locations. Shipment decisions made at the beginning of the period can be corrected at an additional cost after the capacities are observed in the second stage. We prove that this model has a newsvendor-type closed-form optimal solution and illustrate our results using historical data from our collaborating food bank.