Two-stage stochastic programming approach for limited medical reserves allocation under uncertainties

At the early stage of public health emergencies, when the conventional medical reserves prepared are insufficient, and productivity could temporarily not meet the surge in demand, donations can be used to cover excess demand for medical supplies to a large extent. This paper explicitly considers the allocation problem of limited medical reserves during a public health emergency, incorporating uncertainty in demand and donated supplies and the priorities of health care centers. The problem is formulated as a two-stage stochastic program that regards the donated supplies as an efficient recourse action, aiming to minimize the total losses. The optimal allocation strategy of limited medical reserves and donations is obtained by solving the model using Gurobi solver. Finally, the effectiveness of the proposed approach is verified by a series of computational results, which show that the solutions of our method not only benefit the emergency demand fulfill rate but reduce the total losses as well.