Publication:
A cost-sharing mechanism for multi-country partnerships in disaster preparedness

dc.contributor.authorRodríguez-Pereira, J.
dc.contributor.authorKoyuncu, Burcu Balçık
dc.contributor.authorRancourt, M.-E.
dc.contributor.authorLaporte, G.
dc.contributor.departmentIndustrial Engineering
dc.contributor.ozuauthorKOYUNCU, Burcu Balçık
dc.date.accessioned2023-04-24T11:31:07Z
dc.date.available2023-04-24T11:31:07Z
dc.date.issued2021-12
dc.description.abstractWe study a multi-country disaster preparedness partnership involving the joint prepositioning of emergency relief items. Our focus is the Caribbean region, which faces increasing disaster threats due to weather-related events and has committed to share its resources for regional integration. We collaborate with the inter-governmental Caribbean Disaster and Emergency Management Agency (CDEMA), which is interested in creating a methodology to equitably (fairly) allocate the costs necessary to operationalize this commitment. We present alternative cost allocation methods among the partner countries by considering their risk level and their ability to pay. Specifically, we adapt some techniques such as the Shapley value, the equal profit method, and the alternative cost avoided method, and we also propose a new insurance-based allocation scheme to determine the country contributions. This mechanism, which is formulated as a linear programming model, sets country premiums by considering the expected value and the standard deviation of country demands and their gross national income. We discuss the structural properties of these methods and numerically evaluate their performance in achieving an equitable allocation scheme with respect to three equity indicators based on the Gini coefficient. Our proposed cost-sharing mechanism not only achieves superior solutions compared with other methodologies with respect to the proposed equity metrics, but is also computationally efficient. We numerically illustrate how it can be used to obtain alternative cost allocation plans by giving different weights to disaster risk and economic standing parameters, and we analyze the benefits and fairness of the partnership in a transparent way.en_US
dc.description.sponsorshipTÜBİTAK ; Institute for Data Valorization (IVADO) ; Natural Sciences and Engineering Research Council of Canada (NSERC) ; Canada Research Chair in Distribution Management
dc.identifier.doi10.1111/poms.13403en_US
dc.identifier.endpage4565en_US
dc.identifier.issn1059-1478en_US
dc.identifier.issue12en_US
dc.identifier.scopus2-s2.0-85105675072
dc.identifier.startpage4541en_US
dc.identifier.urihttp://hdl.handle.net/10679/8135
dc.identifier.urihttps://doi.org/10.1111/poms.13403
dc.identifier.volume30en_US
dc.identifier.wos000649636200001
dc.language.isoengen_US
dc.peerreviewedyesen_US
dc.publicationstatusPublisheden_US
dc.publisherWileyen_US
dc.relation.ispartofProduction and Operations Management
dc.relation.publicationcategoryInternational Refereed Journal
dc.rightsinfo:eu-repo/semantics/restrictedAccess
dc.titleA cost-sharing mechanism for multi-country partnerships in disaster preparednessen_US
dc.typeArticleen_US
dspace.entity.typePublication
relation.isOrgUnitOfPublication5dd73c02-fd2d-43e0-9a23-71bab9ae0b6b
relation.isOrgUnitOfPublication.latestForDiscovery5dd73c02-fd2d-43e0-9a23-71bab9ae0b6b

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