The Impact Of Congestion On Protection Decisions In Supply Networks Under Disruptions *

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.