Improving supply system reliability against random disruptions: Strategic protection investment

Supply chains, as vital systems to the well-being of countries and economies, require systematic approaches reduce their vulnerability. In this paper, we propose a non linear optimisation model determine an effective distribution protective resources among facilities in service supply so probability failure which are exposed case external disruptions. The protected assets depends on level protection investments ultimate goal is minimise expected facility-customer transport or travel costs provide goods services. A version obtained by exploiting specialised network flow structure. Furthermore, efficient GRASP solution algorithm developed benchmark linearised resolve numerical difficulties. applicability proposed demonstrated using Toronto hospital network. Protection measures within context correspond capacity expansion likelihood that hospitals unable satisfy patient demand during periods high hospitalisation (e.g. pandemic). Managerial insights resource discussed comparison between probabilistic worst-case disruptions provided.