Modeling for the equitable and effective distribution of food donations under stochastic receiving capacities

ABSTRACT

We present and analyze stochastic models developed to facilitate the equitable and effective distribution of donated food by a regional food bank among the population at risk for hunger. Since demand typically exceeds the donated food supply, the food bank must distribute donated food in an equitable manner while minimizing food waste, leading to conflicting objectives. Distribution to beneficiaries in the service area is carried out by local charitable agencies, whose receiving capacities are stochastic, since they depend on factors (such as their budget and workforce) that vary significantly over time. We develop a single-period, two-stage stochastic model that ensures equitable distribution of food donations when the distribution decisions are made prior to observing capacities at the receiving locations. Shipment decisions made at the beginning of the period can be corrected at an additional cost after the capacities are observed in the second stage. We prove that this model has a newsvendor-type closed-form optimal solution and illustrate our results using historical data from our collaborating food bank.

KEYWORDS:

• Food distribution
• stochastic models
• equity
• fairness
• effectiveness
• food bank
• capacitated network flow problems
• newsvendor problem
• humanitarian logistics
• food insecurity

Acknowledgements

We would like to thank the staff of the FBCENC, specifically, Charlie Hale, Vice President of IT & Operations and Earline E. Middleton, Vice President of Agency Services and Programs at FBCENC, for their help and support.

Funding

This research was supported by the National Science Foundation under grant numbers CMMI-1000018 and CMMI-1000828. The opinions expressed in this article represent those of the authors and not necessarily those of the National Science Foundation.

Additional information

Notes on contributors

Irem Sengul Orgut

Irem Sengul Orgut received her Ph.D. in Industrial Engineering with a minor in Statistics in 2015 from the Edward P. Fitts Department of Industrial and Systems Engineering at North Carolina State University. She now works at Lenovo as the Analytics Project Manager where she has been using operations research and statistical learning methods in a wide variety of problems, including field quality prediction and optimal defect tracking. Prior to starting her doctoral studies, she received her B.S. degrees in Industrial Engineering and Mechanical Engineering from Bogazici University, Istanbul, Turkey, in 2010. Her research interests include stochastic and statistical modeling of complex systems with multiple objectives and conflicting decision makers. She received various awards for her teaching and research. She is a member of INFORMS and IIE. Her web address is https://iremsengul.wordpress.com/.

Julie Ivy

Julie Ivy is a Professor and Fitts Faculty Fellow in Health Systems Engineering in the Edward P. Fitts Department of Industrial and Systems Engineering at North Carolina State University. She received her B.S. and Ph.D. in Industrial and Operations Engineering from the University of Michigan. She also received her M.S. in Industrial and Systems from Georgia Tech. Her research interests are mathematical modeling of stochastic dynamic systems with emphasis on statistics and decision analysis as applied to health care, public health, and humanitarian logistics. She is a member of INFORMS, IIE, and the Health Systems Engineering Alliance (HSEA) Board of Directors.

Reha Uzsoy

Reha Uzsoy is the Clifton A. Anderson Distinguished Professor in the Edward P. Fitts Department of Industrial and Systems Engineering at North Carolina State University. He holds B.S. degrees in Industrial Engineering and Mathematics and an M.S. in Industrial Engineering from Bogazici University, Istanbul, Turkey. He received his Ph.D. in Industrial and Systems Engineering in 1990 from the University of Florida. His teaching and research interests are in production planning and supply chain management. Before coming to the United States he worked as a production engineer with Arcelik AS, a major appliance manufacturer in Istanbul, Turkey. He has also been a visiting researcher at Intel Corporation and IC Delco. He was named a Fellow of the Institute of Industrial Engineers in 2005 and Outstanding Young Industrial Engineer in Education in 1997 and has received awards for both undergraduate and graduate teaching.