Allocating Resources to Enhance Resilience, with Application to Superstorm Sandy and an Electric Utility

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2015-01-01
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MacKenzie, Cameron
Zobel, Christopher
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Industrial and Manufacturing Systems Engineering
The Department of Industrial and Manufacturing Systems Engineering teaches the design, analysis, and improvement of the systems and processes in manufacturing, consulting, and service industries by application of the principles of engineering. The Department of General Engineering was formed in 1929. In 1956 its name changed to Department of Industrial Engineering. In 1989 its name changed to the Department of Industrial and Manufacturing Systems Engineering.
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Industrial and Manufacturing Systems Engineering
Abstract

This article constructs a framework to help a decisionmaker allocate resources to increase his or her organization's resilience to a system disruption, where resilience is measured as a function of the average loss per unit time and the time needed to recover full functionality. Enhancing resilience prior to a disruption involves allocating resources from a fixed budget to reduce the value of one or both of these characteristics. We first look at characterizing the optimal resource allocations associated with several standard allocation functions. Because the resources are being allocated before the disruption, however, the initial loss and recovery time may not be known with certainty. We thus also apply the optimal resource allocation model for resilience to three models of uncertain disruptions: (1) independent probabilities, (2) dependent probabilities, and (3) unknown probabilities. The optimization model is applied to an example of increasing the resilience of an electric power network following Superstorm Sandy.

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This is the peer reviewed version of the following article: “Allocating Resources to Enhance Resilience, with Application to Superstorm Sandy and an Electric Utility”. Risk Analysis. doi: 10.1111/risa.12479. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for self-archiving.

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Fri Jan 01 00:00:00 UTC 2016
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