Optimal Resource Allocation for Preparedness and Recovery of Interdependent Systems
MacKenzie, Cameron A.
MetadataShow full item record
Disruptive events can have severe economic consequences, and input-output models can be used to measure how direct impacts propagate to other economic sectors. Investing in infrastructure and industry sectors can lessen those direct impacts, but it is often difficult to determine the level of resources that should be allocated to prepare for a disruption and how best to allocate resources in response to a disruption. We develop a model to help a decision maker allocate resources to prevent a disruption and to help individual industries recover if the disruption occurs. Resources allocated in advance of the disruption reduce the likelihood of the disruption, and resources allocated if the disruption occurs are divided among allocations to individual industries and allocations that help all industries recover simultaneously. The decision maker chooses these allocation amounts with the objective of minimizing the expected production losses from the disruption. The Deepwater Horizon oil spill, which adversely impacted several industries in the Gulf region in 2010, serves as a real-world case study for this decision model.
Includes supplemental material: PresentationWestern Economics Association International Annual Conference, June 2013, Seattle, Washington
RightsThis publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.
Showing items related by title, author, creator and subject.
Static and Dynamic Resource Allocation Models for Recovery of Interdependent Systems: Application to the Deepwater Horizon Oil Spill MacKenzie, Cameron A.; Baroud, Hiba; Barker, Kash (2013);Determining where and when to invest resources during and after a disruption can challenge policy makers and homeland security officials. Two decision models, one static and one dynamic, are proposed to determine the ...
Bergan, Shawn J. (Monterey, California. Naval Postgraduate School, 1994);When a delay causes contractors to be shut down or turn idle for a period of time, fixed overhead as well as general and administrative expenses continue to be incurred. However, the amount of direct costs to which these ...
Naval Postgraduate School Center for Homeland Defense and Security (CHDS) (Monterey, California. Naval Postgraduate SchoolCenter for Homeland Defense and Security, 2006-07);July 2006. The July 2006 issue of Homeland Security Affairs offers articles about risk perception, domestic right wing extremist groups, social network analysis, and the impact of foreign policy on homeland security. It ...