The risk of medical waste pollution and huge demand of daily medical waste disposal pose great difficulties to medical waste management. Establishing medical waste disposal centers (MWDCs) is considered one of the ways to reduce the environmental and public risk of medical waste pollution. However, how to serve the medical waste disposal demand in optimal MWDCs' locations is a key challenge due to the complexity of the whole system and relationships among stakeholders. This article develops a soft-path solution for reducing risks as well as mitigating the related costs by optimizing the MWDC location-allocation problem. A risk mitigation-oriented bilevel equilibrium optimization model is developed for modeling the Stackelberg game behavior between the local government and the medical institutions. The objectives of the local government are minimizing the total risk of loss, the subsidy costs, and the investment cost of building the MWDCs, while minimizing the disposal and transportation costs are the objectives at the medical institution level. Fuzzy random variables are introduced by combining insufficient historical data with expert knowledge via consulting surveys to describe the coexisting uncertainties in the data. To solve the model, a hybrid approach combined with the interactive fuzzy programming technique and an Entropy-Boltzmann selection-based genetic algorithm are designed and tested. The Chengdu Medical Waste Disposal Centers Planning Project is used as a practical application. The results show that it is possible to achieve a balanced market with higher economic efficiency and significantly reduced risk through an appropriate principle of interactive actions between the bilevel stakeholders.
Keywords: Bilevel equilibrium model; location-allocation problem; medical waste; risk management.
© 2020 Society for Risk Analysis.