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European Journal of Operational Research journal homepage: www.elsevier.com/locate/ejor
Production, Manufacturing and Logistics
Optimizing system resilience: A facility protection model with recovery time
Chaya Losada, M. Paola Scaparra ⇑, Jesse R. O’Hanley
Kent Business School, University of Kent, CT2 7PE Canterbury, UK
a r t i c l e
i n f o
Article history:
Received 30 November 2010
Accepted 26 September 2011
Available online 1 October 2011
Keywords:
OR in strategic planning
Location
Protection
Bilevel programming
Decomposition
a b s t r a c t
Optimizing system resilience is concerned with the development of strategies to restore a system to normal operations as quickly and efficiently as possible following potential disruption. To this end, we present in this article a bilevel mixed integer linear program for protecting an uncapacitated median type facility network against worst-case losses, taking into account the role of facility recovery time on system performance and the possibility of multiple disruptions over time. The model differs from previous types of facility protection models in that protection is not necessarily assumed to prevent facility failure altogether, but more precisely to speed up recovery time following a potential disruption. Three different decomposition approaches are devised to optimally solve medium to large problem instances. Computational results provide a cross comparison of the efficiency of each algorithm. Additionally, we present an analysis to estimate cost-efficient levels of investments in protection resources.
Ó 2011 Elsevier B.V. All rights reserved.
1. Introduction
In this paper, we consider the problem of reducing the impact of component failures on service and supply systems. Our specific aim is to decide which components to harden or protect, not necessarily with the