A Disruption Recovery Model in a Production-Inventory System with Demand Uncertainty and Process Reliability

Paul, Sanjoy Kumar; Sarker, Ruhul A.; Essam, Daryl

doi:10.1007/978-3-642-40925-7_47

Cited by 12 publications

(10 citation statements)

References 24 publications

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“…A pandemic is a unique case of supply chain disruptions that do have not only severe but also long-lasting impacts on the operations of a supply chain. Any epidemic outbreaks, which can be contained geographically, are generally perceived as disruptions that have high uncertainty (Paul et al 2013 ; Paul et al 2014a , b , c ), long-term existence, and ripple effect (Ivanov 2020a ). In recent years, firms have been experiencing more numbers of epidemic outbreaks.…”

Section: Introductionmentioning

confidence: 99%

Strategies for Managing the Impacts of Disruptions During COVID-19: an Example of Toilet Paper

Paul

Chowdhury

2020

Glob J Flex Syst Manag

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172

114

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Due to the recent pandemic of coronavirus, known as the COVID-19 outbreak, the supply chains have been impacted most significantly. Manufacturers of certain items have experienced a substantial increase in demand, and on the other hand, raw materials supply, to produce those items, has reduced because of supply failure. To overcome these challenges, this paper proposes some strategies to improve service level during an extraordinary pandemic outbreak, such as COVID-19, for the most wanted products such as toilet paper. This study considers meeting the increased demand of the customers for an essential product of daily life like toilet paper during a pandemic is beyond the traditional economic objective, i.e., increase profit, of the manufacturers. Instead, this should be more about the social responsibility of all the manufactures to ensure that they can serve more customers. Motivated by this and taking toilet paper as an example of the product, we first analyzed the current scenario of the manufacturing and the demand for the product and then proposed some strategies to deal with this unprecedented risk and analyzed the results. We have compared the results, using hypothetical data, between the current scenario and proposed strategies. The result shows that sharing information and resources from all manufacturers to produce under a single brand, emergency sourcing, producing basic quality items, and packing in the smallest sizes have a significant positive impact on the service level. This paper first investigates the strategies for a high-demand and essential item during a pandemic situation and proposes strategies to deal with this unique, extraordinary disruption.

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Section: Introductionmentioning

confidence: 99%

Strategies for Managing the Impacts of Disruptions During COVID-19: an Example of Toilet Paper

Paul

Chowdhury

2020

Glob J Flex Syst Manag

Self Cite

172

114

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“…Recently, the backorder and lost sales concept was further applied to develop a recovery model for managing sudden supply disturbance in a three-stage supply chain with multiple raw material suppliers and retailers (Paul et al 2016a;Paul et al 2014b). This concept was also applied to develop a disturbance management model for managing sudden disruptions in a single-stage imperfect (Paul et al 2013), a two-stage imperfect (Paul et al 2014c), a three-stage mixed ) production-inventory system, a three-stage supply chain system (Paul et al 2017), and for managing sudden demand fluctuations in a manufacturer-retailer system (Paul et al 2014a). Besides, Yang et al (2005) also addressed a recovery planning approach for production and stock control policies.…”

Section: Literature Reviewmentioning

confidence: 99%

A mathematical modelling approach for managing sudden disturbances in a three-tier manufacturing supply chain

et al. 2019

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This paper aims to develop a recovery planning approach in a three-tier manufacturing supply chain, which has a single supplier, manufacturer, and retailer under an imperfect production environment, in which we consider three types of sudden disturbances: demand fluctuation, and disruptions to production and raw material supply, which are not known in advance. Firstly, a mathematical model is developed for generating an ideal plan under imperfect production for a finite planning horizon while maximizing total profit, and then we re-formulate the model to generate the recovery plan after happening of each sudden disturbance. Considering the high commercial cost and computational intensity and complexity of this problem, we propose an efficient heuristic, to obtain a recovery plan, for each disturbance type, for a finite future period, after the occurrence of a disturbance. The heuristic solutions are compared with a standard solution technique for a considerable number of random test instances, which demonstrates the trustworthy performance of the developed heuristics. We also develop another heuristic for managing the combined effects of multiple sudden disturbances in a period. Finally, a simulation approach is proposed to investigate the effects of different types of disturbance events generated randomly. We present several numerical examples and random experiments to explicate the benefits of our developed approaches. Results reveal that in the event of sudden disturbances, the proposed mathematical and heuristic approaches are capable of generating recovery plans accurately and consistently.

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“…The costs involved, are the holding, set-up, ordering, back order, and lost sales. Back order is the portion of an order that cannot be delivered at the scheduled time, but that will be delivered at a later date when available, and back order cost is determined as the unit back order cost multiplied by back order units and it's time delay [11]. When there is demand, but the item is out of stock and the customer will not wait for the stock to be replenished, lost sales cost exists.…”

Section: B Formulation For the Recovery Planmentioning

confidence: 99%

“…Recently, this back order and lost sales concept was also applied to manage transportation [9] and supply [10] disruption in a two-stage supply chain, which consists of a single supplier and a single retailer. This concept was further extended to develop a real time disruption management model, for managing both a single and multiple production disruptions in a single-stage [11] and two-stage [12] production inventory system. A few other studies considered supply disruption while developing a supply chain model, for examples, Parlar and Perry [13] developed inventory models that considered supplier availability with deterministic product demand.…”

Section: Introductionmentioning

confidence: 99%

Managing supply disruption in a three-tier supply chain with multiple suppliers and retailers

Paul

Sarker

Essam

2014

2014 IEEE International Conference on Industrial Engineering and Engineering Management

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Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works.Abstract -In this paper, a supply disruption management model is introduced in a three-tier supply chain with multiple suppliers and retailers, where the system may face sudden disruption in its raw material supply. At first, we formulated a mathematical model for ideal conditions and then reformulated it to revise the supply, production and delivery plan after the occurrence of a disruption, for a future period, to recover from the disruption. Here, the objective is to minimize the total cost during the recovery time window while being subject to supply, capacity, demand, and delivery constraints. We have also proposed an efficient heuristic to solve the model and the results have been compared, with another established solution approach, for a good number of randomly generated test problems. The comparison showed the consistent performance of our developed heuristic. This paper also presents some numerical examples to explain the usefulness of the proposed approach.

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A Disruption Recovery Model in a Production-Inventory System with Demand Uncertainty and Process Reliability

Cited by 12 publications

References 24 publications

Strategies for Managing the Impacts of Disruptions During COVID-19: an Example of Toilet Paper

Strategies for Managing the Impacts of Disruptions During COVID-19: an Example of Toilet Paper

A mathematical modelling approach for managing sudden disturbances in a three-tier manufacturing supply chain

Managing supply disruption in a three-tier supply chain with multiple suppliers and retailers

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