A two‐stage adaptive robust model for designing a reliable blood supply chain network with disruption considerations in disaster situations

Abstract We consider multi‐period blood supply chain network design in disaster situations that involve blood donor groups, permanent and temporary blood collection facilities, blood banks, and hospitals. We use a discrete scenario set to model the uncertain blood supply and demand, and the unforeseeable disruptions in permanent blood collection facilities, blood banks, and road links arising from a disaster, where instead of complete failure, disrupted permanent blood collection facilities and blood blanks may only lose part of their capacities. To design a reliable blood supply network to mitigate the possible disruptions, we present a two‐stage adaptive robust model that integrates the location, inventory, and allocation decisions incorporating a blood sharing strategy, where blood can be delivered from a disrupted/non‐disrupted blood bank to disrupted blood banks to enhance the flexibility of the relief network. For this novel problem, we devise an exact algorithm that integrates column‐and‐constraint generation and Benders decomposition and introduce several non‐trivial acceleration techniques to speed up the solution generation process. We conduct extensive numerical studies on random data sets to evaluate the algorithmic performance. We also conduct a case study in Tehran to demonstrate its real‐life applicability and examine the impacts of key model parameters on the solutions. The numerical results verify the benefits of our model over typical benchmarks, that is, deterministic and stochastic models, and the superiority of our solution algorithm over the CPLEX solver and two well‐known solution approaches, that is, column‐and‐constraint generation and Benders decomposition. Finally, based on the numerical results, we derive managerial insights from the analytical findings.