Pre-disaster investment decisions for strengthening a highway network

  • Authors:
  • Srinivas Peeta;F. Sibel Salman;Dilek Gunnec;Kannan Viswanath

  • Affiliations:
  • School of Civil Engineering, Purdue University, W. Lafayette, IN 47907, USA;Department of Industrial Engineering, Koc University, Istanbul 34450, Turkey;Robert H. Smith School of Business, University of Maryland, MD 20742, USA;Krannert School of Management, Purdue University, W. Lafayette, IN 47907, USA

  • Venue:
  • Computers and Operations Research
  • Year:
  • 2010

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Abstract

We address a pre-disaster planning problem that seeks to strengthen a highway network whose links are subject to random failures due to a disaster. Each link may be either operational or non-functional after the disaster. The link failure probabilities are assumed to be known a priori, and investment decreases the likelihood of failure. The planning problem seeks connectivity for first responders between various origin-destination (O-D) pairs and hence focuses on uncapacitated road conditions. The decision-maker's goal is to select the links to invest in under a limited budget with the objective of maximizing the post-disaster connectivity and minimizing traversal costs between the origin and destination nodes. The problem is modeled as a two-stage stochastic program in which the investment decisions in the first stage alter the survival probabilities of the corresponding links. We restructure the objective function into a monotonic non-increasing multilinear function and show that using the first order terms of this function leads to a knapsack problem whose solution is a local optimum to the original problem. Numerical experiments on real-world data related to strengthening Istanbul's urban highway system against earthquake risk illustrate the tractability of the method and provide practical insights for decision-makers.