Humanitarian Organization Pre-Disaster Deployment for Predictable Disasters

Posted: 3 Jan 2019

See all articles by Jon M. Stauffer

Jon M. Stauffer

Texas A&M University - Mays Business School

Subodha Kumar

Temple University - Fox School of Business

Date Written: December 20, 2017

Abstract

Initial deployment decisions are critical to Humanitarian Organizations (HOs) as they pre-position inventory and prepare for predictable disasters, such as hurricanes, floods, and wildfires. Deploying too little inventory results in unmet demand, bad publicity, and unhappy donors. On the other hand, deploying too much inventory can also result in bad publicity and unhappy donors due to high costs and wasted resources. We use a stochastic optimization model in several modes to investigate the initial deployment decision, the surrounding costs, and optics of varying disaster scenarios. The stochastic model forces the initial deployment decision to be made before the disaster occurs and true demand is realized. While many humanitarian practitioners are leery of optimization models dictating decisions, we find that full optimization (including returns and disposals) may actually increase the initial deployment amount. We also find that fixed return costs and scenario analysis can have a large impact on the cost savings and decision-making of HOs. We discuss how understanding both marginal and fixed return costs is important for the HOs' choice of optimization modes and level of initial deployment, especially when wide discrepancies in disaster outcomes are possible.

Keywords: Humanitarian Operations, Inventory Deployment, Inventory Pre-Positioning

Suggested Citation

Stauffer, Jon and Kumar, Subodha, Humanitarian Organization Pre-Disaster Deployment for Predictable Disasters (December 20, 2017). Available at SSRN: https://ssrn.com/abstract=3303844

Jon Stauffer (Contact Author)

Texas A&M University - Mays Business School ( email )

TAMU4217
College Station, TX 77843-4217
United States

Subodha Kumar

Temple University - Fox School of Business ( email )

Philadelphia, PA 19122-____
United States

HOME PAGE: http://sites.temple.edu/subodha/

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