Optimal Resource Allocation Model to Prevent, Prepare, and Respond to Multiple Disruptions, with Application to theDeepwater HorizonOil Spill and Hurricane Katrina

Abstract

Determining how to allocate resources in order to prevent and prepare for disruptions is a challenging task for homeland security officials. Disruptions are uncertain events with uncertain consequences. Resources that could be used to prepare for unlikely disruptions may be better used for other priorities. This chapter presents an optimization model to help homeland security officials determine how to allocate resources to prevent and prepare for multiple disruptions and how to allocate resources to respond to and recover from a disruption. In the resource allocation model, prevention reduces the probability of a disruption, and preparation and response both reduce the consequences of a disruption. The model is applied to the US Gulf Coast region and considers a Deepwater Horizon-type oil spill and a hurricane similar to Hurricane Katrina.