Inventory Planning for Hurricane Events Emmett Lodree, Jr. and Selda Taskin Department of Industrial & Systems Engineering Auburn University Humanitarian Logistics: Networks for Africa May 5-9, 2008 Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Inventory Planning with Hurricane Forecast Updates Conclusion Outline Introduction 1 Motivation Problem Description and Research Questions Hurricanes and their Characteristics Inventory Planning with Hurricane Forecast Updates 2 Model Development Solution Methodology Extension Conclusion 3 Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics Outline Introduction 1 Motivation Problem Description and Research Questions Hurricanes and their Characteristics Inventory Planning with Hurricane Forecast Updates 2 Model Development Solution Methodology Extension Conclusion 3 Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics First Responders NEW ORLEANS: Members of a Texas Task Force One and FEMA search and resuce team call for a man they were told had been calling for help from his attic all night. When they arrived they found that he was dead. Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics Supplies STAFF PHOTO BY ALEX BRANDON Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics Hurricane Katrina: Personal Account of Humanitarian Logistics My family did not evacuate prior to Katrina No provisions for senior citizen bound to wheelchair Recent unnecessary evacuations to downtown Trapped with no electricity, running water, police protection, communication, etc. for three full days Rescued by helicopter on day 4 (Thursday), thanks to US Coast Guard Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics Public and Private Sector Logistics Supply chain and logistics management: Right products, in the right places, at the right times and in the right quantities for meeting consumer demands Includes procurement, production, transportation, storage, sales Public Sector Logistics Responsiveness is primary Cost is secondary Private Sector Logistics Profit driven Meet and create customer demands at minimum cost Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics Humanitarian Relief Logistics The FEMA Logistics Directorate Established as a directorate in 2007; inspired by slow logistics response to Hurricane Katrina Works with public sector organizations such as American Red Cross and US Army Core of Engineers Working towards partnering with private sector organizations Public and private sector organizations must work together to facilitate effective humanitarian logistics response Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics Research Questions What is the appropriate inventory level of hurricane supplies that should be available before the hurricane season? What is the appropriate inventory level of hurricane supplies that should be available before an observed storm makes landfall? How should inventories be prepositioned before the hurricane season? How should inventories be prepositioned before an observed storm makes landfall? Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics Research Questions What is the appropriate inventory level of hurricane supplies that should be available before an observed storm makes landfall? Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics Research Questions What is the appropriate inventory level of hurricane supplies that should be available before an observed storm makes landfall? This research adopts the perspective of the private sector firm Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics Humanitarian and Economic Risks The risk of being under-prepared The risk of being over-prepared Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics Humanitarian and Economic Risks The risk of being under-prepared (Humanitarian performance metrics) Slow response, human suffering (Economic performance metrics) Opportunity cost, lost sales, lost market share Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics Humanitarian and Economic Risks The risk of being over-prepared Excess inventories, excess costs, lower profits $12 million ice melted two years after Katrina Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics One-Size-Fits-All Disaster Relief Planning Emergency Management: hazard identification, risk assessment Hazards: Hurricanes, earthquakes, act of war or terrorism Exploit unique characteristics for better planning and response Lodree and Taskin Inventory Planning for Hurricane Events
Introduction Motivation Inventory Planning with Hurricane Forecast Updates Problem Description and Research Questions Conclusion Hurricanes and their Characteristics Abundance of historical data (e.g., HURDAT) Abundance of hurricane prediction models Sufficient time to react after potential threat is initially observed Hurricanes can be predicted with greater accuracy as time passes Lodree and Taskin Inventory Planning for Hurricane Events
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