A cost-sharing mechanism for multi-country partnerships in disaster preparedness

Name: A cost-sharing mechanism for multi-country partnerships in disaster preparedness
Author: Rodríguez-Pereira, J., Koyuncu, Burcu Balçık, Rancourt, M.-E., Laporte, G.

İsim	A cost-sharing mechanism for multi-country partnerships in disaster preparedness
Yazar	Rodríguez-Pereira, J., Koyuncu, Burcu Balçık, Rancourt, M.-E., Laporte, G.
Basım Tarihi:	2021-12
Basım Yeri	- Wiley
Tür	Süreli Yayın
Dil	İngilizce
Dijital	Evet
Yazma	Hayır
Kütüphane:	Özyeğin Üniversitesi
Demirbaş Numarası	1059-1478
Kayıt Numarası	7edd2a60-068e-4efc-97c5-235bf5e46f53
Lokasyon	Industrial Engineering
Tarih	2021-12
Notlar	TÜBİTAK ; Institute for Data Valorization (IVADO) ; Natural Sciences and Engineering Research Council of Canada (NSERC) ; Canada Research Chair in Distribution Management
Örnek Metin	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

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A cost-sharing mechanism for multi-country partnerships in disaster preparedness

Yazar Rodríguez-Pereira, J., Koyuncu, Burcu Balçık, Rancourt, M.-E., Laporte, G.

Basım Tarihi 2021-12

Basım Yeri - Wiley

Tür Süreli Yayın

Dil İngilizce

Dijital Evet

Yazma Hayır

Kütüphane Özyeğin Üniversitesi

Demirbaş Numarası 1059-1478

Kayıt Numarası 7edd2a60-068e-4efc-97c5-235bf5e46f53

Lokasyon Industrial Engineering

Tarih 2021-12

Notlar TÜBİTAK ; Institute for Data Valorization (IVADO) ; Natural Sciences and Engineering Research Council of Canada (NSERC) ; Canada Research Chair in Distribution Management

Örnek Metin 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