Developing a warehouse optimization model for humanitarian logistics : A study with United Nations High Commissioner for Refugees (UNHCR)

Abstract: In humanitarian logistics today there is a gap between the practical and theoretical methods used for facility localization. The consequence is that ad-hoc methods are frequently used, leading to non-optimal localization of facilities which in turn leads to long lead times and costs. This study aims to fill that gap by identifying the factors affecting facility localization in the humanitarian sector and constructing a model thereafter. UNHCR is an organization that is going through major changes in its supply chain management and has been used as a working example of a humanitarian organization and will be a future user of the model. To reach the conclusion, literature has been studied and interviews have been held. A field trip was conducted to gather live observations and conduct interviews. The findings are a number of quantitative factors that should be taken into consideration in facility localization such as demand size, facility cost, and facility capacity, and a number of qualitative factors such as infrastructure, political stability, climate, and security. The developed model will take these qualitative and quantitative factors into consideration and determine the most cost or lead time optimal network. The developed tool fits well in with the needs of humanitarian organizations and can be used as a support tool when making facility localization decisions. The model bridges the gap by adjusting and connecting existing research to the special needs of humanitarian organizations.