Dynamic supply chain network design for the supply of blood in disasters: A robust model with real world application

This paper presents a robust network design model for the supply of blood during and after disasters. A practical optimization model is developed that can assist in blood facility location and allocation decisions for multiple post-disaster periods. The application of the proposed model is investigated in a case problem where real data is utilized to design a network for emergency supply of blood during potential disasters. Our analysis on the tradeoff between solution robustness and model robustness arrives at important practical insights. The performance of the proposed ‘robust optimization’ approach is also compared with that of an ‘expected value’ approach.