Author
Rodríguez-Pereira, J., Koyuncu, Burcu Balçık, Rancourt, M.-E., Laporte, G.
Publication Date
2021-12
Publication Place
-
Wiley
Type
Periodical
Language
English
Digital
Yes
Manuscript
No
Library
Özyeğin University
Library Asset ID
1059-1478
Record ID
7edd2a60-068e-4efc-97c5-235bf5e46f53
Library Location
Industrial Engineering
Date
2021-12
Notes
TÜBİTAK ; Institute for Data Valorization (IVADO) ; Natural Sciences and Engineering Research Council of Canada (NSERC) ; Canada Research Chair in Distribution Management
Sample Text
We study a multi-country disaster preparedness partnership involving the joint prepositioning of emergency relief items. Our focus is the Caribbean region, which faces increasing disaster threats due to weather-related events and has committed to share its resources for regional integration. We collaborate with the inter-governmental Caribbean Disaster and Emergency Management Agency (CDEMA), which is interested in creating a methodology to equitably (fairly) allocate the costs necessary to operationalize this commitment. We present alternative cost allocation methods among the partner countries by considering their risk level and their ability to pay. Specifically, we adapt some techniques such as the Shapley value, the equal profit method, and the alternative cost avoided method, and we also propose a new insurance-based allocation scheme to determine the country contributions. This mechanism, which is formulated as a linear programming model, sets country premiums by considering the expected value and the standard deviation of country demands and their gross national income. We discuss the structural properties of these methods and numerically evaluate their performance in achieving an equitable allocation scheme with respect to three equity indicators based on the Gini coefficient. Our proposed cost-sharing mechanism not only achieves superior solutions compared with other methodologies with respect to the proposed equity metrics, but is also computationally efficient. We numerically illustrate how it can be used to obtain alternative cost allocation plans by giving different weights to disaster risk and economic standing parameters, and we analyze the benefits and fairness of the partnership in a transparent way.
DOI
10.1111/poms.13403
Cilt
30
