Reliable location allocation for hazardous materials

Abstract

Highlights• A reliable location allocation model for hazardous materials is formulated.• Scenario of depot disruption is considered.• Numerical examples show that the proposed model leads to 8.33Abstract Decision-making on location allocation has gained considerable attention since it involves strategic and operational policies with mid-term and long-term effects. In this paper, a reliable location allocation mechanism in the context of hazardous materials is proposed, considering that the depots are subject to the risk of disruption that may be caused by many factors, including hazardous materials depot accident, depot maintenance upgrade, equipment fault, and power outage. According to the characteristics of hazardous materials, this study aims to minimize the systemic risk of storage and transportation under budget constraints. The problem is formulated as an integer linear programming model to simultaneously determine: (i) the optimal depot locations; (ii) the amount of hazardous materials stored in each located depot; (iii) the optimal allocation (transportation) plans; and (iv) the contingency plans for depot disruption. Numerical examples demonstrate that the proposed modeling method leads to 8.33% risk reduction and 1.92% cost savings compared with traditional location allocation without disruption consideration. This reveals the necessity and importance of taking reliability into account and making contingency plans in disruption scenarios regarding hazardous materials location allocation decisions. depot location and customer allocation. On the one hand, depot locating chooses the optimal depots from the candidates set and has a direct impact on storage risk and an indirect impact on transportation risk. On the other hand, according to the located depots, customer allocating makes the optimal allocation (transportation) plans and decides the amount of hazmats stored in each depot, which has a direct impact on transportation risk and an indirect impact on storage risk. Therefore, in this paper, we study integrated location allocation in the context of hazmats with the objective of minimizing the total storage and transportation risk.Location allocation, as a problem originally introduced by Cooper (1963), has been widely investigated for formulating various practical issues. Many mathematical models, including integer programming, dynamic programming, stochastic programming, fuzzy programming, and fuzzy random programming have been proposed for this problem in the existing literature. Along with the relevant theoretical developments, approaches to location allocation have been applied to many practical fields, such as supply chain design (Chen et al. 2015), traffic network design (Zockaie et al. 2018), storage and allocation of post-disaster relief materials (Duhamel et al. 2016), and spatial planning of water and/or energy access networks (Gokbayrak and Kocaman 2017). However, to the best of our knowledge, applications of location allocation in the context of hazmats logistics have not yet been addresse...

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