A Review of Relief Supply Chain Optimization
A Review of Relief Supply Chain Optimization
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(Received: January 28, 2014 / Revised: February 4, 2014 / Accepted: February 5, 2014)
ABSTRACT
With a steep increase of the global disaster relief efforts around the world, the relief supply chain and humanitarian
logistics play an important role to address this issue. A broad overview of operations research ranges from a principle
or conceptual framework to analytical methodology and case study applied in this field. In this paper, we provide an
overview of this challenging research area with emphasis on the corresponding optimization problems. The scope of
this study begins with classification by the stage of the disaster lifecycle system. The characteristics of each optimi-
zation problem for the disaster supply chain are considered in detail as well as the logistics features. We found that the
papers related to disaster relief can be grouped in three aspects in terms of logistics attributes: facility location, distri-
bution model, and inventory model. Furthermore, the literature also analyzes objectives and solution algorithms pro-
posed in each optimization model in order to discover insights, research gaps and findings. Finally, we offer future
research directions based on our findings from the investigation of literature review.
Figure 1. Natural disaster reported 1900–2011 (Source: EM-DAT The International Disaster Database, 2011).
events, such as Hurricane Katrina and Tohoku tsunami, the general media, trade publications and other publica-
have also highlighted the need of operations research/ tions in disaster relief and humanitarian logistics. Caun-
management science (OR/MS) tools, in particular, in relief hye et al. (2012) proposed a literature review using con-
distribution, and evacuation planning and scheduling. tent analysis on optimization models in emergency lo-
According to the steep increase in the number of gistics. In the same year, Dasaklis et al. (2012) proposed
articles on relief supply chain management in recent the literature from their logistical attributes into four
years (Altay and Green, 2006), a broad overview of the groups: epidemics logistics network configuration, stock-
issues is addressed ranging from a principle or concep- piling medical supplies, triage operations and other ap-
tual framework to the analytical methodology and case proaches. Finally, the latest review paper on this topic is
study applied. Among a number of distributions in this released at the beginning of year 2013. Galindo and
field, the operations research encompasses most objec- Batta (2013) reviewed recent OR/MS research in disas-
tive challenges, such as decision-making, simulation, ma- ter operations management as a continuation of the pre-
thematical optimization, queuing theory and other sto- vious work of Altay and Green (2006). Their analysis is
chastic process models. However, the first review paper performed by classifying papers based on several issues
on operations research in disaster relief was published in such as author’s affiliation, disaster type, methodology,
2006 by Altay and Green (2006). They survey the litera- etc. As far as we know, such an analysis of solution al-
ture on OR and MS models for disaster operations man- gorithms for optimization models has not been per-
agement. They offer an overview on OR/MS model fol- formed before in this field. So, in addition to classifica-
lowing disaster life cycle in general which is now seven tion approach in this review, we present the analysis of
years old. The second was released by Wright et al. solution algorithms related to the characteristics of model
(2006) to examine the previous OR work in homeland formulation in details as well as the study of the most
security. The areas specified by the US Department of common objective functions in this research area. The
Homeland Security mainly on the four phases in the di- reason to study focusing on only optimization models
saster life cycle: planning, prevention, response, and re- among other OR techniques is because it is the most
covery. Natarajarathinam et al. (2009) provided a fra- popular tools in emergency logistics and relief supply
mework for classifying supply chain management litera- chain systems (Caunhye et al., 2012). This definitely
ture in crisis management. De la Torre et al. (2012) ex- brings both major challenges and growing contribution
panded the analysis of the use of such models from the to this field. Furthermore, each modeling has also cre-
academics perspective to the practitioners by interview- ated valuable and important insights which lead our re-
ing representatives from government organizations and view to address research gaps and future trends in this
commercial partners. They also include findings from study.
A Review of Relief Supply Chain Optimization
Vol 13, No 1, March 2014, pp.1-14, © 2014 KIIE 3
Table 1. The different characteristics between commercial supply chain and relief supply chain
Characteristic Commercial supply chain Relief supply chain
Parties involved • Well linked with each other • Unknown and voluntary
• Long-term relationship • Develop instantaneously during the relief operations
Network • Relatively stable • Unstable and many suppliers only supply once during the
configuration relief operations
Demand • Generally quite stable • Largely unpredictable
• Past data can be used to forecast the level of • Very unstable with time
demand by standard technique • Need quick assessment and knowledge
• No standard technique available
Supply • Predetermined suppliers • Not possible to limit supplies from certified suppliers
• The level of supply activities reflect the level • Supply not reflect the demand (demand from aid agencies)
of demand (demand from customer order) • Non-essential and shortages most often seen
• Proper selection and performance monitoring
Adapted from Pujawan et al. (2009).
While there are several evidences providing the lit- comfort, and even restore entire communities (Day et al.,
erature review focusing on operations research tech- 2009). The disaster relief supply chain operates under
niques for disaster relief, only a few specially offered a conditions that would frustrate most commercial supply
concentration for optimization models (Caunhye et al., chain managers. Different objectives and mechanisms
2012; Dasaklis et al., 2012; De la Torre et al., 2012). drive disaster relief supply chains; their operating envi-
Nevertheless, the thorough study and analysis of solu- ronment is extremely uncertain and dynamic, and uni-
tion approaches for optimization is not discovered yet. que management principles are often employed. Never-
Therefore, the advantages of this study are that it not theless, there are lessons to be learned that could apply
only surveys the literature to identify findings and in- to the most publicized commercial sector supply chains,
sights but also is capable of filling the stated gap from such as those found at Wal-Mart, Toyota, Apple, and
the previous review papers. So, the objectives of this MacDonald’s, and vice versa (Whybark et al., 2010).
paper are to: Recent studies have demonstrated the increasing
contribution of relief supply chain management due to a
1) Review recent progress and summarize the current number of natural and man-made disasters and the rec-
stage of knowledge in a particular topic on the opti- ognition of the central role of logistics in responding to
mization models for relief supply chain system. these (Kovacs and Spens, 2012). A disaster relief supply
2) Organize and classify papers on optimization model chain starts from suppliers of federal and local govern-
for disaster relief supply chain management by an ment or private donors to regional distribution ware-
appropriate approach. houses, to local warehouses, finally to the disaster re-
3) Create an understanding of this topic for audience by covery centers (Feng et al., 2013). Sheu (2007b) defined
discussing the findings presented in recent research. specifically to an emergency logistics as a process of
4) Synthesize the results of future trend on optimization planning, managing and controlling the efficient flows
model for disaster relief supply chain management of relief, information, and services from the point of
from several primary literature papers by producing a origin to the points of destination to meet the urgent
coherent argument about the focused description of needs of the affected people under the emergency condi-
this field. tions. Oloruntoba and Gray (2006) argued that relief
supply chains are clearly unpredictable turbulent and
requiring flexibility. In principle, locations are frequently
unknown until the demand occurs. Short lead times
2. DISASTER MANAGEMENT SYSTEM dramatically affect inventory availability, procurement,
AND RELIEF SUPPLY CHAIN and distribution. Transportation and supply information
MANAGEMENT is unreliable, incomplete, or non-existent (Russell, 2005).
However, relief supply chain framework have been de-
2.1 Relief Supply Chain Management veloped by numerous agencies and governments around
the world, many of them seem to be purely theoretical
The formation or reformation of supply chains fol- and relatively ineffective in their initial response or sub-
lowing large-scale and catastrophic disasters is a com- ject to unforeseen constraints (Banomyong and Soda-
plex undertaking. Established and impromptu organiza- pang, 2012). While commercial and relief supply chains
tions and government agencies, attempting to work to- are sharing a number of commonly ways of principle
gether, in some cases for the first time, quickly must and operation, the different characteristics are able to
provide goods and services that help save lives, provide summarize as shown in Table 1 which is adapted from
Manopiniwes and Irohara: Industrial Engineering & Management Systems
Vol 13, No 1, March 2014, pp.1-14, © 2014 KIIE 4
Pujawan et al. (2009). This paper concentrate upon academic publications and
journals related to relief supply chain management for
2.2 Disaster Management System disaster operations. The review focuses on only papers
presenting optimization models on which are the most
Disaster management is a set of processes designed popular among other OR techniques. Those publications
to be implemented before, during, and after disasters to are selected in the year published from 2004 to present
prevent or mitigate their effects (Nikbakhsh and Fara- shown in Figure 2 in order to study the update trend and
hani, 2011). In general, it is carried in a cycle system findings. We use journal search engines, such as Science
consisting of several main stages. In the United States Direct, ISI Web of Science, the INFORMS Journal Data-
comprehensive emergency management is commonly base, Emerald Group Publishing, Springer Journal Da-
described in terms of four programmatic phases: mitiga- tabase and various individual journal’s search engines.
tion, preparedness, response, and recovery (Altay and The query refers to the keywords “logistics”, “supply
Green, 2006). This discipline involves preparing for di- chain”, “disaster”, “emergency”, “humanitarian”, “resil-
sasters, responding to them, and finally supporting and ient”, “large-scale” and other forms of the words such as
rebuilding the society after initial disaster relief opera- “disastrous”, “hazard”, “resilience” and “catastrophe.”
tions have ended. Many representatives and organiza- Moreover, the literature of relief supply chain manage-
tions involved in disaster management. These vary from ment is followed with the concept of disaster operations
small to large NGOs, local, state and federal govern- management. According to Section 2.2, many of disaster
mental relief organizations and commercial partners of
relief organizations. Also, the success of these systems
relies heavily on effective and efficient cooperation and
coordination of organizations participating in relief op-
erations. The main activities during each phase are shown
in Table 2 (Altay and Green, 2006).
3. SCOPE OF STUDY
In order to review the literature in this study, sources Figure 2. The classification approach for the literature
and searching approach are firstly necessary to identify. on relief supply chain management.
A Review of Relief Supply Chain Optimization
Vol 13, No 1, March 2014, pp.1-14, © 2014 KIIE 5
operations management have been presented in a differ- 5. FINDINGS FROM REVIEW PROCEDURE
ent number of stages. However, those are basically car-
ried as a cycle with both short-term and long-term systems. The objective of this section is to breakdown the
In order to react with crucial time, literatures with long- literature following the stated methodology in order to
term planning are excluding our interest. The review discover the findings and other relevance from the study.
study focuses on only short-term operations which will
be discussed in the following section. 5.1 The Grouping by Disaster Lifecycle Stage
and locations of the distribution center in relief network Characteristics of Problem Formulation
and the amount of relief supplies to be stocked at each
distribution center.
However, the number of articles which consider
models for both pre-disaster and post-disaster is quite
small. Most of them address their models as multi pe-
riod problem for each requirement of pre- and post-
disaster. Irohara et al. (2013) proposed a tri-level pro-
gramming model for this integrated category. The top
level addressed facility location and inventory decisions;
the second level represents damage caused by the disas-
ter, while the third level determines response and recov-
ery decisions. Figure 4. The study of problem formulation characteristics.
an integrated inventory allocation and transportation disaster relief response in the event of earthquake.
planning was represented by Kristianto et al. (2014) as a Secondly, the distribution of relief commodities is
two stage stochastic programming where the inventory another important aspect in disaster supply chain system
allocation acts as the first stage decision and transporta- especially for post-disaster stage. When the disaster strikes,
tion planning as the two-stage decision at different sets a large-scale demand is forced to release immediately. It
of future stochastic scenarios. However, there is an arti- is undeniable that the community needs a good and reli-
cle by Falasca et al. (2009) proposed deterministic and able system which is able to dispatch relief items from
stochastic model as a multi-modal in the same humani- suppliers and distribution centers to affected areas with
tarian logistics problem. They constructed a determinis- the right quantity, the right place and the right time. The
tic model to develop a multi-criteria optimization model optimization models are developed as distribution mod-
to assist in the assignment of volunteer management and els mainly applied with post-disaster level. For example,
stochastic model for the procurement of goods in the Sheu (2007a) presented a hybrid fuzzy clustering-opti-
humanitarian efforts. mization approach to the operations of emergency logis-
tics co-distribution responding to the urgent relief de-
5.3 The Logistics Feature mands in the crucial rescue period. Tzeng et al. (2007)
constructed a relief-distribution model using the multi-
In terms of the logistics viewpoint, the study indi- objective programming method for designing relief de-
cates that literature can be classified as three different livery systems in a real case. Yi and Ozdamar (2007)
models comprising of facility location, distribution mo- proposed a mixed integer multi-commodity network
del and inventory decision. Figure 5 illustrates that facil- flow model that treats vehicles flows for coordinating
ity location and inventory model are popular for the logistics support in disaster response activities. Likewise
problem focusing on pre-disaster stage while the distri- Ji and Zhu (2012) and Afshar and Haghani (2012) that
bution model is mainly applied with problems on post-
developed optimization model describing the integrated
disaster phase. This is affected by the characteristics of
logistics operations in response to disasters.
each disaster period. Firstly, the research assists that the
most important aspect of preparedness stage before the
occurrence of disaster is to determine the location of 5.4 The Review of Objective Function
various facilities and infrastructures. This is including
but not limited to central warehouses of relief items, lo- Besides of the problem characteristics of optimiza-
cal warehouses, permanent relief facilities such as major tion models as the earlier sections, we study objective
hospitals and positioned relief equipment and vehicles, functions and algorithms to discover some findings and
and temporary relief facilities such as mobile hospitals. relationships. The literature found that those optimiza-
Also, humanitarian logistics systems are usually forced tion models formulate their objective functions in many
to keep some of their required relief items and equip- different aspects. However, according to the feature of
ment in stock, in order to increase their levels of prepar- logistics model, in terms of facility location, inventory
edness against sudden disasters. However, similar to model and distribution model, cost and time effective-
commercial supply chains, high levels of inventory ness seem to be most important aspects for this field.
holding costs could be a burden on humanitarian organi- Figure 6 depicts that the most popular greatest objective
zations because of their limited funds and operating re- function is to minimize cost. These resulted in various
sources. Therefore, designing effective inventory sys- perspectives, such as transportation cost (Horner and
tems for humanitarian organization can be of great im- Downs, 2010), inventory cost (Ozguven and Ozbay,
portance (Nikbakhsh and Farahani, 2011). Kongsomsak- 2013), shortage cost (Lin et al., 2009; Falasca, 2009),
sakul et al. (2005) studied the optimal shelter locations facility opening cost (Mete and Zabinsky, 2010) or a
for the flood evacuation planning. McCall (2006) devel- combination (Sheu, 2007a; Klibi et al., 2013).
oped and suggested prepositions for humanitarian assis-
tance pack-up kits that contain emergency relief material
commonly used in these missions in order to expedite
delivery to those impacted by a disaster. Gunnec and
Salman (2007) presented a two-stage multi-criteria sto-
chastic programming model for a multi-facility location
problem in pre-disaster planning for effective post-
disaster emergency logistics. Ukkusuri and Yushimito
(2008) presented a model incorporate the idea of the
most reliable path in a facility location problem in which
used in solving the inventory prepositioning problem for
humanitarian supply chains. Opit et al. (2013) devel-
oped the previous model (Lee et al., 2011) focusing on
stock prepositioning model to support an emergency Figure 6. The review of objective function.
Manopiniwes and Irohara: Industrial Engineering & Management Systems
Vol 13, No 1, March 2014, pp.1-14, © 2014 KIIE 8
The second greatest general objective function is the transit evacuation operations as a location-routing
time aspect only to minimize response travel time problem with uncertain demands based on shortest path
(Duran et al., 2011; Yan and Shih, 2009; Rachaniotis et algorithm. The hybrid genetic algorithms, artificial neu-
al., 2013) and evacuation time (Kongsomsaksakul et al., ral network, and hill climbing heuristic algorithms have
2005; Song et al., 2009) for relief supply chain and hu- been proposed for solving problems. Kristianto et al.
manitarian logistics system. However, while cost and (2014) used the fuzzy shortest path algorithm to convert
time familiarize the objective function for mathematical the shortest path problem with time windows and capac-
models in this interest field, Yi and Kumar (2007), Yi ity constraint to the original shortest path problem, and
and Ozdamar (2007), Dessouky et al. (2006) and Oz- thus the problem is easier to solve. Not so many stochas-
damar et al. (2004) minimized sum of unsatisfied de- tic problems found to use the exact method such as
mand of effected people. Similarly, Balcik and Beamon branch and bound algorithm (Salmeron and Apte, 2010).
(2008) and Kusumastuti et al. (2013) maximized the Bozorgi-Amiri et al. (2013) gave recommendations to
total expected demand covered by the established facili- apply meta-heuristics for stochastic optimization pro-
ties during the considered periods of response time. Tra- gramming in their future research work.
vel time was considered instead of distance with reason Secondly, both exact method and heuristic are com-
that in the post-disaster period, distance can be short but monly solved for deterministic problems. The branch
traveling time can take longer due to damages in trans- and bound algorithm was used by Gkonis et al. (2007)
portation infrastructure (Kusumastuti et al., 2013). More- to solve linear mixed integer programming with oil spill
over, there are some optimization models which objec- response problem. Similarly, Sebbah et al. (2013) pre-
tive functions are considered out of those aspects. A sented this exact method to maximize the utility func-
mathematical model for post-disaster road restoration of tion of the relief plans of military logistics planning in
Aksu and Ozdamar (2014) maximized the total weighted humanitarian relief operations. Jia et al. (2007) applied
earliness of all paths restored while Sebbah et al. (2013) and evaluated three heuristic algorithms to solve maxi-
maximized the utility function of the relief plans for mal covering problem which are genetic algorithm, lo-
military logistics planning. Yoshimito et al. (2012) con- cate-allocate and Lagrangian relaxation. Lagrangian re-
sidered a disaster relief incorporating social costs within laxation was also found in Ozdamar et al. (2004) to
the modeling framework as to minimize the urgency compute linear and integer multi-period multi-commo-
social function. dity network flow problem. Moreover, they gave sug-
gestions on how to select the most appropriate heuristic
5.5 The Review of Solution Algorithm to solve different location problem instances. Meta-
heuristic of ant colony optimization was applied to solve
Our study concern the detailed breakdown on op- the relief distribution problem (Yi and Kumar, 2007)
timization techniques for the field of relief supply chain and the path selection model (Yuan and Wang, 2009).
management as listed in the Appendix. Mathematical The fuzzy clustering method was proposed by Sheu et al.
programming is entirely applied for problem formula- (2005) formulated to group affected areas and to associ-
tion, such as mixed or pure integer programming, linear ate the respective distribution priority with them. The
or non-linear programming, stochastic programming, etc. computational procedures embed the fundamentals of
Among those literatures, a variety of solution appro- the fuzzy clustering and multi-objective optimization
aches, either exact or heuristic method, have been pro- models are needed to search for the optimal solutions.
posed to solve optimization problems in this emergency Hamedi et al. (2012) addressed the genetic algorithm
logistics field. Exact methods guarantee that the optimal based heuristic to solve a problem of the humanitarian
solution is found if the method is given sufficiently time response planning for a fleet of vehicles with reliability
and space whereas heuristics are solution methods that considerations. Branch-and-cut is also found to solve
typically relatively quickly can find a feasible solution pickup and delivery problems by Wohlgemuth et al.
with reasonable quality (Ropke, 2005). The review found (2012) and Irohara et al. (2013).
that those papers with stochastic model mainly used Moreover, other efficient solution algorithms and
heuristic methods rather than the exact ones while de- heuristics have also been offered in this research inves-
terministic models commonly solved by both of them. tigation to solve NP-hard problems. Ben-Tal et al. (2011),
Several details are discussed below. proposed affinely adjustable robust counterpart as a ro-
Firstly, stochastic programming models, in general, bust optimization associated to linear programming with
are difficult to solve by the classical algorithm methods uncertain parameters in humanitarian relief supply chains.
compared with deterministic problems. Thus, a variety Ozdamar and Demir (2012) presented hierarchical clus-
of heuristic approach is mainly found to solve them, ter and route procedure to deal with large scale relief
such as shortest-path algorithm (Song et al., 2009), La- networks by using the k-means partitioning heuristic.
grangian L-shaped method (Rawls and Turnquist, 2010), Abounacer et al. (2014) and Rath and Gutjahr (2014)
sample average approximation method (Klibi et al., proposed both exact solution method and heuristic as an
2013; Chang et al., 2007) fuzzy logic and spreadsheet approximation method. These two papers applied an
modeling (Falasca, 2009). Song et al. (2009) formulated epsilon-constraint method and prove that it generates the
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Period Problem
Logistics Mathematical
No Author Year Deter- Solution algorithm
feature Single Multi Stochastic model
ministic
Facility location
Salmeron and stochastic mixed exact method
27 2010 Distribution ✓ ✓
Apte integer programming (branch and bound)
Inventory
Facility location mixed-integer
28 Duran et al. 2011 ✓ ✓ exact method
Inventory programming
heuristic algorithm
29 Ben-Tal et al. 2011 Distribution ✓ ✓ linear programming (affinely adjustable robust
counterpart)
Ozdamar and heuristic algorithm
30 2012 Distribution ✓ ✓ integer programming
Demir (multi-level clustering algorithm)
Yoshimito non-linear mixed heuristic algorithm
31 2012 Facility location ✓ ✓
et al. integer programming (Voronoi diagrams)
32 Ji and Zhu 2012 Distribution ✓ ✓ integer programming heuristic algorithm
Wohlgemuth mixed integer heuristic algorithm
33 2012 Distribution ✓ ✓
et al. programming (branch and cut)
Afshar and mixed integer
34 2012 Distribution ✓ ✓ exact method
Haghani programming
linear integer heuristic algorithm
35 Hamedi et al. 2012 Distribution ✓ ✓
programming (genetic algorithm)
Facility location
36 Opit et al. 2013 ✓ ✓ linear programming exact method
Inventory
heuristic algorithm
Facility location stochastic
37 Klibi et al. 2013 ✓ ✓ (sample average approximation
Inventory programming
method)
38 Najafi et al. 2013 Distribution ✓ ✓ linear programming exact method
Facility location heuristic algorithm
39 Rekik et al. 2013 ✓ ✓ linear programming
Distribution (genetic algorithm)
Rachaniotis Facility location stochastic
40 2013 ✓ ✓ not applied
et al. Distribution programming
exact method
linear integer
41 Sebbah et al. 2013 Distribution ✓ ✓ (branch and bound: column
programming
generation)
Taniguchi and heuristic algorithm
42 2013 Distribution ✓ ✓ linear programming
Thompson (NSGA-II)
Ozguven and stochastic approximation method
43 2013 Inventory ✓ ✓
Ozbay programming (p-level efficient points)
Kusumastuti Facility location mixed integer
44 2013 ✓ ✓ exact method
et al. Distribution programming
Facility location mixed integer heuristic algorithm
45 Irohara et al. 2013 ✓ ✓
Inventory programming (branch and cut)
Bozorgi- Facility location mixed integer
46 2013 ✓ ✓ exact method
Amiri et al. Inventory programming
heuristic algorithm, approximation
Rath and mixed integer method
47 2014 Distribution ✓ ✓
Gutjahr programming (adaptive epsilon-constraint
method)
Kristianto Distribution non-linear heuristic algorithm
48 2014 ✓ ✓
et al. Inventory programming (fuzzy shortest path)
approximation method
Abounacer mixed integer
49 2014 Distribution ✓ ✓ (adaptive epsilon-constraint
et al. programming
method)
Aksu and
50 2014 Distribution ✓ ✓ integer programming heuristic algorithm
Ozdamar