Responsive contingency planning of capacitated supply networks under disruption risks

This paper prescribes an appropriate risk mitigation model for a capacitated supply chain subject to premeditated attacks on facilities. It presents a unified approach to responsive contingency planning and optimizing protection of supply facilities utilizing a game-theoretic framework of attack and defense which involves multi level optimization. Gradual capacity backups is proposed for the first time in the context of protection under intentional attacks in a capacitated supply system. A recursive tree search algorithm is proposed to solve the tri-level optimization problem. Computational efficiency of the algorithm is demonstrated and managerial insights are presented.