In this paper, we use a two-stage stochastic programming model to optimize retrofit decision for highway systems so that damage caused by future earthquakes will be minimized. This work is an example of applying network theories and system optimization approaches to address important problems in the field of critical infrastructure protection. Using a real-world case study based on existing Alameda County highway network settings, we demonstrate potential real-world applications of this research. Comparison between the proposed approach and some commonly used methods in practice indicates significant potential benefit from more rigorous system approaches. Other issues such as value of perfect information, reliability, and robustness are also discussed.
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Fan et al. (2009) studied this question.
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