The impact of congestion on protection decisions in supply networks under disruptions

Abstract We analyze the impact of congestion on the protection decisions of supply networks for mitigating major disruption. We present a tri-level mixed integer programming model to identify critical facilities to secure and backup plans with appropriate capacity levels and response speeds during disruption. The congestion arising at the facilities as a result of flow reallocation from the disrupted facilities is modelled as a convex cost function. We present an implicit enumeration algorithm to solve the tri-level model. The computational results demonstrate the efficiency of the solution method. Our analysis depicts that a decentralized protection strategy is recommended under congestion.

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