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Integrated Humanitarian Logistics System for Developing Countries
Victor Cantillo1, PhD; José Holguín-Veras2 PE, PhD
Luis F. Macea1, Johanna Amaya2, Nathalie Cotes1, Ivan D. Serrano1, Maria J Bermudez1, Andrea de Nubila1
1Universidad del Norte, Barranquilla, Colombia, 2Rensselaer Polytechnic Institute, Troy, NY, USA
The development of this research will minimize the
negative impacts of natural disasters in terms of human
suffering, especially in developing countries. The
preliminary results can be briefly summarized in the
fact that the estimated costs can be incorporated into
comprehensive models of humanitarian logistics, both
at the strategic level (facility location for prepositioning
supplies) and the tactical or operational level (assistance
to the affected), and they serve as support to making-
decision process related for an efficient response.
Results can be used for the economic and social
assessment of humanitarian aid operations.
Future research impacts
1. Holguín-Veras, J., Jaller, M., Van Wassenhove, L. N., Pérez, N., Wachtendorf, T. (2012b). On the unique
features of post-disaster humanitarian logistics. Journal of Operations Management, 30(7), 494-506.
2. Holguín-Veras, J., Pérez, N., Jaller, M., Van Wassenhove, L. N., Aros-Vera, F. (2013). On the appropriate
objective function for post-disaster humanitarian logistics models. Journal of Operations Management,
31(5), 262-280.
3. Ortúzar, J. D., Willumsen, L. G. (2011). Modelling Transport (Fourth ed.). Santiago, Chile: Wiley.
4. Train, K. E. (2009). Discrete Choice Methods with Simulation (Second Edition ed.). New York, United
States of America: University of California, Berkeley, and NERA.
References
The purpose of this research is to develop an integrated
humanitarian logistics system for post-disaster relief response in
developing countries, which includes a measure of the suffering of
affected people into the formulations of humanitarian logistics. This
will allow a better distribution of social costs among those affected,
and the timely delivery of critical commodities according to
deprivation time, starting with the neediest people. In consequence,
this framework leads to more effective and coordinated strategies
for delivering critical supplies in developing countries.
Abstract
Objectives
The samples
Two surveys were applied in several cities of Colombia where
socioeconomic information was gathered from households affected
by natural disasters, and from others who were not.
Figure 2. shows the towns (in red) were the first surveys were
conducted and the level of impact of floods in the Colombian
Caribbean Region in 2010 and 2011. This sample was formed by
240 respondents.
The second survey was applied to 560 people from different cities
and towns affected by disasters in Colombia.
• To develop humanitarian logistic models capable of explicitly
considering the impacts of delivery actions on deprivation costs
in developing countries.
• To propose an emergency management system for disaster relief
agencies in order to improve their response.
The suffering of affected people due to disasters
Our hypothesis is that the costs associated to human suffering, due
to the occurrence of a disaster, can be assessed based on the time of
supply shortages experienced by affected people and their
socioeconomic characteristics.
The structure and nature of such suffering should be considered as a
function of wellness, which is monotonically increasing, non-linear
and convex (Holguín-Veras et al., 2013) with respect to deprivation
time, as shown in Figure 1.
The assignment of humanitarian aid
We believe that incorporating deprivation costs into the objective
function of humanitarian logistic models allows to reach the optimal
assignment and the timely delivery of scarce resources, during the
aftermath of a disaster.
Hypothesis
Figure 3. Surveyed municipalities (1st survey)
The example considers three scenarios for distributing water in three
towns affected by a disaster. The population of each town is 500
inhabitants.
Scenarios differ in the number of warehouses for water
prepositioning to attend the impacted populations. The scenarios
consider one, two and three warehouses.
The purpose was to supply water (4 liters per capita) to people
affected.
In all scenarios, the fixed cost is COP 7,000,000 for each warehouse
and the inventory costs are COP 3,000 for each unit of product (4
liters).
Case Study - Numerical example
The authors wish to thank the program
PEER-NSF for supporting this research
through funding the project “Integrated
humanitarian logistic system for
developing countries” and the National
Science Foundation for funding the
project “Cyber Enabled Discovery
System for Advanced Multidisciplinary
Study of Humanitarian Logistics for
Disaster Response” (NSF-IIS 1124827).
Acknowledgements
Methods and Instruments
Microeconomic approach
The welfare of an affected individual for a natural disaster can be
treated through the random utility theory, using stated preference
surveys. (Ortúzar and Willumsen, 2011).
The benefits for timely supply are obtained as a measure of welfare
change arising from the change in consumer surplus (Train, 2009).
∆𝐸(𝐸𝐶𝑛) = 1
𝛼𝑛 𝑙𝑛 𝑒𝑉𝑛𝑗
1𝐽1
𝑗=1
− 𝑙𝑛 𝑒𝑉𝑛𝑗0
𝐽0
𝑗=1
Experimental design
The design consisted on choice situations that were presented to
respondents, describing hypothetical scenarios of being a disaster
survivor where they had to decide whether or not to buy a kit of life-
sustaining items (water and foods). The variables used in this
experimental design were: Shortage time (no delivery), expected
delivery time, budget, purchase amount and total cost of the
purchase.
𝑉𝑛𝑗 = 𝛽𝑗𝑘 . 𝑥𝑛𝑗𝑘 + 𝛽𝑗𝑡 . 𝑓𝑗𝑡 𝑡𝑛𝑗
𝐾
𝑘=1
𝑈𝑛𝑗 = 𝑉𝑛𝑗 + 𝜀𝑛𝑗
The assessment of the economic benefits and deprivation cost
function for the estimated models are presented below.
Incorporate DC into humanitarian logistics models
We have treated the facility location problem for pre-positioning
supplies, allowing to serve the areas affected by disasters. The
formulation proposed considers deprivation costs in the objective
function.
Results
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
0 6 12 18 24 30 36 42 48 54 60 66 72
Ben
efit
s ($
CO
P )
Saving time (hrs)
Aleatorio
Panel
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
0 6 12 18 24 30 36 42 48 54 60 66 72
Ben
efit
s ($
CO
P)
Saving time (hrs)
Model 1: Linear
Model 2: Quadratic
Model 3: Log-quadratic
Model 4: Exponential
Figure 4. Approach 1 (first survey) Figure 5. Approach 2 (Second survey)
Min 𝐶𝑗𝑘𝑚 ∙ 𝑤𝑘𝑚 ∙ 𝑃𝑗𝑘
𝑚 +
𝐽
𝑗=1
𝐶𝑖𝑗𝑘𝑚 ∙ 𝑤𝑘𝑚 ∙ 𝑃𝑖𝑗𝑘
𝑚
𝐼
𝑖=1
+
𝐽
𝑗=1
𝐾
𝑘=1
𝑀
𝑚=1
𝐾
𝑘=1
𝑀
𝑚=1
𝑓𝑗 .
J
𝑗=1
𝑌𝑗
+ 𝑠𝑚. 𝐴𝑗𝑚 + γ𝑚 𝑡𝑗𝑘 , 𝑄𝑘 ∙ 𝑃𝑗𝑘
𝑚 + γ𝑚 𝑡𝑖𝑗𝑘 , 𝑄𝑘
𝐼
𝑖=1
𝐽
𝑗=1
𝐾
𝑘=1
𝑀
𝑚=1
𝐽
𝑗=1
𝐾
𝑘=1
∙ 𝑃𝑖𝑗𝑘𝑚
𝑀
𝑚=1
J
𝑗=1
M
𝑚=1
500 affected 500 affected 500 affected
Population 1 Population 2 Population 3Warehouse 1
8 hrs
13 hrs
18 hrs
($3000/unit)
($6000/unit)
($9000/unit)
500 affected 500 affected 500 affected
Population 1 Population 2 Population 3Warehouse 1
Warehouse 2
8 hrs
8 hrs
13 hrs
($3000/unit)
($3000/unit)
($6000/unit)
500 affected 500 affected 500 affected
Population 1 Population 2 Population 3Warehouse 1
Warehouse 2
8 hrs
8 hrs
($3000/unit)
($3000/unit)
Warehouse 3
8 hrs($3000/unit)
scenario 1
scenario 2
scenario 3
Under humanitarian
logistics perspective,
social costs must be
taken into account.
Only under such
circumstances,
supplies could be
fairly distributed.
14,000,000
19,000,000
24,000,000
29,000,000
34,000,000
1 2 3
Co
sts
(CO
P)
Warehouses
private costs
externality costs
44,000,000
46,000,000
48,000,000
50,000,000
52,000,000
54,000,000
1 2 3
So
cia
l co
sts
(CO
P)
Warehouses
• This research provides basis for efficient delivery strategies,
ensuring the best allocation of critical commodities to affected
populations.
• We estimated different econometric models of deprivation costs,
that can be useful to assess humanitarian relief operations and to
develop comprehensive models of humanitarian logistics.
• Progress has been made in developing a strategic logistic model,
especially for pre-positioning supplies to serve the areas affected
by disasters.
Conclusions
Figure 1.
Deprivation cost functions representation
Figure 2.
Affected due to Haiti earthquake 2010
a) Before flooding b) After flooding
Floods in the Atlantic department, Colombia 2010-2011
Before floods After floods
Figure 6. Floods in the Atlantic department, Colombia, 2010-2011
Strategic and Tactical
Planning for disaster
emergency response
Operational planning
for disaster
emergency response
Knowledge
Information
Experiences
Attention to Affected People
by Natural Disasters
National and
International Disaster
Relief Organizations
National Systems of
Disaster Risk
Management