HighlightsNovel approach to EMS infrastructure systems design, planning, and operations under uncertainty.Models strategic flexibility as Real Options (RO) using multi-stage stochastic programming and decision rules.Differs from standard RO analysis by emulating real-world decision-making.Objective function minimizes expected total costs; outputs are optimal initial configuration and decision rules.Flexible solution provides lower expected cost than stochastically optimal rigid solutions, especially valuable when required incident coverage rate is >95%.
AbstractA novel approach to EMS infrastructure systems design, planning, and operations under long-term uncertainty is introduced based on multi-stage stochastic programming and decision rules, accounting for strategic flexibility (also known as real options – RO). Different from standard RO analysis, the approach mimics real-world decision-making by exercising flexibility based on conditional-go decision rules. The objective is to minimize the expected total costs over the system’s life cycle, and the outputs are the optimal initial configuration and decision rules. A flexible solution provides lower expected cost than stochastically optimal rigid solutions, especially valuable when required incident coverage rate is >95%.
Flexibility and real options analysis in emergency medical services systems using decision rules and multi-stage stochastic programming
2017-09-06
21 pages
Article (Journal)
Electronic Resource
English
NTIS | 1994
|Automotive engineering | 1977
|British Library Conference Proceedings | 1993
|