The impact of congestion on protection decisions in supply networks under disruptions

•We analyze the impact of congestion on the protection decisions of supply networks.•A tri-level optimization model is introduced to determine protection strategy.•A computationally efficient solution algorithm has been developed.•Network costs can be significantly reduced by incorporating congestio...

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Bibliographic Details
Published in:Transportation research. Part E, Logistics and transportation review Logistics and transportation review, 2021-01, Vol.145, p.102166, Article 102166
Main Authors: Parajuli, Anubhuti, Kuzgunkaya, Onur, Vidyarthi, Navneet
Format: Article
Language:English
Subjects:
Congestion
Contingent capacity planning
Disruption
Fortification
Interdiction
Trilevel optimization
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Summary:•We analyze the impact of congestion on the protection decisions of supply networks.•A tri-level optimization model is introduced to determine protection strategy.•A computationally efficient solution algorithm has been developed.•Network costs can be significantly reduced by incorporating congestion effects.•Decentralized protection strategy avoids worst case losses in major disruptions. We analyze the impact of congestion on the protection decisions of supply networks for mitigating major disruption. We present a tri-level mixed integer programming model to identify critical facilities to secure and backup plans with appropriate capacity levels and response speeds during disruption. The congestion arising at the facilities as a result of flow reallocation from the disrupted facilities is modelled as a convex cost function. We present an implicit enumeration algorithm to solve the tri-level model. The computational results demonstrate the efficiency of the solution method. Our analysis depicts that a decentralized protection strategy is recommended under congestion.
ISSN:1366-5545
1878-5794
DOI:10.1016/j.tre.2020.102166