IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v120y2023ics0305048323000737.html
   My bibliography  Save this article

Production-sharing of critical resources with dynamic demand under pandemic situation: The COVID-19 pandemic

Author

Listed:
  • Vahdani, Behnam
  • Mohammadi, Mehrdad
  • Thevenin, Simon
  • Meyer, Patrick
  • Dolgui, Alexandre

Abstract

The COVID-19 virus’s high transmissibility has resulted in the virus’s rapid spread throughout the world, which has brought several repercussions, ranging from a lack of sanitary and medical products to the collapse of medical systems. Hence, governments attempt to re-plan the production of medical products and reallocate limited health resources to combat the pandemic. This paper addresses a multi-period production-inventory-sharing problem (PISP) to overcome such a circumstance, considering two consumable and reusable products. We introduce a new formulation to decide on production, inventory, delivery, and sharing quantities. The sharing will depend on net supply balance, allowable demand overload, unmet demand, and the reuse cycle of reusable products. Undeniably, the dynamic demand for products during pandemic situations must be reflected effectively in addressing the multi-period PISP. A bespoke compartmental susceptible-exposed-infectious-hospitalized-recovered-susceptible (SEIHRS) epidemiological model with a control policy is proposed, which also accounts for the influence of people’s behavioral response as a result of the knowledge of adequate precautions. An accelerated Benders decomposition-based algorithm with tailored valid inequalities is offered to solve the model. Finally, we consider a realistic case study – the COVID-19 pandemic in France – to examine the computational proficiency of the decomposition method. The computational results reveal that the proposed decomposition method coupled with effective valid inequalities can solve large-sized test problems in a reasonable computational time and 9.88 times faster than the commercial Gurobi solver. Moreover, the sharing mechanism reduces the total cost of the system and the unmet demand on the average up to 32.98% and 20.96%, respectively.

Suggested Citation

  • Vahdani, Behnam & Mohammadi, Mehrdad & Thevenin, Simon & Meyer, Patrick & Dolgui, Alexandre, 2023. "Production-sharing of critical resources with dynamic demand under pandemic situation: The COVID-19 pandemic," Omega, Elsevier, vol. 120(C).
    • Handle: RePEc:eee:jomega:v:120:y:2023:i:c:s0305048323000737
    DOI: 10.1016/j.omega.2023.102909
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305048323000737
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.omega.2023.102909?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Boucekkine Raouf & Hritonenko Natali & Yatsenko Yuri, 2013. "On the Optimal Control of the Vintage Capital Growth Model with Endogenous Labour Supply," Mathematical Economics Letters, De Gruyter, vol. 1(1), pages 3-7, October.
    2. Pachkova, Elena V., 2009. "Restricted reallocation of resources," European Journal of Operational Research, Elsevier, vol. 196(3), pages 1049-1057, August.
    3. Cooper, Ian & Mondal, Argha & Antonopoulos, Chris G., 2020. "A SIR model assumption for the spread of COVID-19 in different communities," Chaos, Solitons & Fractals, Elsevier, vol. 139(C).
    4. Ivanov, Dmitry & Keskin, Burcu B., 2023. "Post-pandemic adaptation and development of supply chain viability theory," Omega, Elsevier, vol. 116(C).
    5. Saedinia, R. & Vahdani, Behnam & Etebari, F. & Afshar Nadjafi, B., 2019. "Robust gasoline closed loop supply chain design with redistricting, service sharing and intra-district service transfer," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 123(C), pages 121-141.
    6. Goenka, Aditya & Liu, Lin & Nguyen, Manh-Hung, 2021. "SIR economic epidemiological models with disease induced mortality," Journal of Mathematical Economics, Elsevier, vol. 93(C).
    7. Bagal, Dilip Kumar & Rath, Arati & Barua, Abhishek & Patnaik, Dulu, 2020. "Estimating the parameters of susceptible-infected-recovered model of COVID-19 cases in India during lockdown periods," Chaos, Solitons & Fractals, Elsevier, vol. 140(C).
    8. Davide Torre & Danilo Liuzzi & Rosario Maggistro & Simone Marsiglio, 2022. "Mobility Choices and Strategic Interactions in a Two-Group Macroeconomic–Epidemiological Model," Dynamic Games and Applications, Springer, vol. 12(1), pages 110-132, March.
    9. Edward H. Kaplan, 2020. "OM Forum—COVID-19 Scratch Models to Support Local Decisions," Manufacturing & Service Operations Management, INFORMS, vol. 22(4), pages 645-655, July.
    10. Xiaowei Chen & Jing Li & Chen Xiao & Peilin Yang, 2021. "Numerical solution and parameter estimation for uncertain SIR model with application to COVID-19," Fuzzy Optimization and Decision Making, Springer, vol. 20(2), pages 189-208, June.
    11. Dmitry Ivanov & Alexandre Dolgui & Jennifer V. Blackhurst & Tsan-Ming Choi, 2023. "Toward supply chain viability theory: from lessons learned through COVID-19 pandemic to viable ecosystems," International Journal of Production Research, Taylor & Francis Journals, vol. 61(8), pages 2402-2415, April.
    12. Goenka, Aditya & Liu, Lin & Nguyen, Manh-Hung, 2020. "Modeling optimal quarantines under infectious disease related mortality," TSE Working Papers 20-1136, Toulouse School of Economics (TSE).
    13. Gary Gereffi, 2020. "What does the COVID-19 pandemic teach us about global value chains? The case of medical supplies," Journal of International Business Policy, Palgrave Macmillan, vol. 3(3), pages 287-301, September.
    14. Rozhkov, Maxim & Ivanov, Dmitry & Blackhurst, Jennifer & Nair, Anand, 2022. "Adapting supply chain operations in anticipation of and during the COVID-19 pandemic," Omega, Elsevier, vol. 110(C).
    15. Dmitry Ivanov & Alexandre Dolgui, 2022. "The shortage economy and its implications for supply chain and operations management," International Journal of Production Research, Taylor & Francis Journals, vol. 60(24), pages 7141-7154, December.
    16. Elisa F. Long & Eike Nohdurft & Stefan Spinler, 2018. "Spatial Resource Allocation for Emerging Epidemics: A Comparison of Greedy, Myopic, and Dynamic Policies," Manufacturing & Service Operations Management, INFORMS, vol. 20(2), pages 181-198, May.
    17. Raouf Boucekkine & Carmen Camacho & Fabbri Giorgio, 2013. "On the optimal control of some parabolic partial differential equations arising in economics," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00973388, HAL.
    18. Jeroen Struben & Brandon H. Lee & Christopher B. Bingham, 2020. "Collective Action Problems and Resource Allocation During Market Formation," Post-Print hal-02927584, HAL.
    19. Jeroen Struben & Brandon H. Lee & Christopher B. Bingham, 2020. "Collective Action Problems and Resource Allocation During Market Formation," Strategy Science, INFORMS, vol. 5(3), pages 245-270, September.
    20. Hui Zhao & Vinayak Deshpande & Jennifer K. Ryan, 2005. "Inventory Sharing and Rationing in Decentralized Dealer Networks," Management Science, INFORMS, vol. 51(4), pages 531-547, April.
    21. Alexandre Dolgui & Dmitry Ivanov & Suresh P. Sethi & Boris Sokolov, 2019. "Scheduling in production, supply chain and Industry 4.0 systems by optimal control: fundamentals, state-of-the-art and applications," International Journal of Production Research, Taylor & Francis Journals, vol. 57(2), pages 411-432, January.
    22. Nikolopoulos, Konstantinos & Punia, Sushil & Schäfers, Andreas & Tsinopoulos, Christos & Vasilakis, Chrysovalantis, 2021. "Forecasting and planning during a pandemic: COVID-19 growth rates, supply chain disruptions, and governmental decisions," European Journal of Operational Research, Elsevier, vol. 290(1), pages 99-115.
    23. Ali Ekici & Pınar Keskinocak & Julie L. Swann, 2014. "Modeling Influenza Pandemic and Planning Food Distribution," Manufacturing & Service Operations Management, INFORMS, vol. 16(1), pages 11-27, February.
    24. Bruno Albert Neumann-Saavedra & Teodor Gabriel Crainic & Bernard Gendron & Dirk Christian Mattfeld & Michael Römer, 2020. "Integrating Resource Management in Service Network Design for Bike-Sharing Systems," Transportation Science, INFORMS, vol. 54(5), pages 1251-1271, September.
    25. Xavier Brusset & Aida Jebali & Davide La Torre, 2023. "Production optimisation in a pandemic context," International Journal of Production Research, Taylor & Francis Journals, vol. 61(5), pages 1642-1663, March.
    26. Frank Karsten & Marco Slikker & Geert-Jan van Houtum, 2015. "Resource Pooling and Cost Allocation Among Independent Service Providers," Operations Research, INFORMS, vol. 63(2), pages 476-488, April.
    27. Stephanie Carew & Mahesh Nagarajan & Steven Shechter & Jugpal Arneja & Erik Skarsgard, 2021. "Dynamic Capacity Allocation for Elective Surgeries: Reducing Urgency-Weighted Wait Times," Manufacturing & Service Operations Management, INFORMS, vol. 23(2), pages 407-424, March.
    28. Dmitry Ivanov & Alexandre Dolgui, 2020. "Viability of intertwined supply networks: extending the supply chain resilience angles towards survivability. A position paper motivated by COVID-19 outbreak," International Journal of Production Research, Taylor & Francis Journals, vol. 58(10), pages 2904-2915, May.
    29. Sanjay Mehrotra & Hamed Rahimian & Masoud Barah & Fengqiao Luo & Karolina Schantz, 2020. "A model of supply‐chain decisions for resource sharing with an application to ventilator allocation to combat COVID‐19," Naval Research Logistics (NRL), John Wiley & Sons, vol. 67(5), pages 303-320, August.
    30. Santoso, Tjendera & Ahmed, Shabbir & Goetschalckx, Marc & Shapiro, Alexander, 2005. "A stochastic programming approach for supply chain network design under uncertainty," European Journal of Operational Research, Elsevier, vol. 167(1), pages 96-115, November.
    31. Yiqun Ma & Sen Pei & Jeffrey Shaman & Robert Dubrow & Kai Chen, 2021. "Role of meteorological factors in the transmission of SARS-CoV-2 in the United States," Nature Communications, Nature, vol. 12(1), pages 1-9, December.
    32. Vahdani, Behnam & Mohammadi, Mehrdad & Thevenin, Simon & Gendreau, Michel & Dolgui, Alexandre & Meyer, Patrick, 2023. "Fair-split distribution of multi-dose vaccines with prioritized age groups and dynamic demand: The case study of COVID-19," European Journal of Operational Research, Elsevier, vol. 310(3), pages 1249-1272.
    33. Fouad El Ouardighi & Eugene Khmelnitsky & Suresh P. Sethi, 2022. "Epidemic control with endogenous treatment capability under popular discontent and social fatigue," Production and Operations Management, Production and Operations Management Society, vol. 31(4), pages 1734-1752, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Priyan, S. & Matahen, Reem & Priyanshu, Deepa & Mouqdadi, Mahera, 2024. "Environmental strategies for a healthcare system with green technology investment and pandemic effects," Innovation and Green Development, Elsevier, vol. 3(1).
    2. Sariyer, Gorkem & Mangla, Sachin Kumar & Sozen, Mert Erkan & Li, Guo & Kazancoglu, Yigit, 2024. "Leveraging explainable artificial intelligence in understanding public transportation usage rates for sustainable development," Omega, Elsevier, vol. 127(C).
    3. Karakaya, Sırma & Balcik, Burcu, 2024. "Developing a national pandemic vaccination calendar under supply uncertainty," Omega, Elsevier, vol. 124(C).
    4. Rahmati, Reza & Neghabi, Hossein & Bashiri, Mahdi & Salari, Majid, 2023. "Stochastic regional-based profit-maximizing hub location problem: A sustainable overview," Omega, Elsevier, vol. 121(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Ming & Ding, Yueyu & Chu, Feng & Dolgui, Alexandre & Zheng, Feifeng, 2024. "Robust actions for improving supply chain resilience and viability," Omega, Elsevier, vol. 123(C).
    2. Chervenkova, Tanya & Ivanov, Dmitry, 2023. "Adaptation strategies for building supply chain viability: A case study analysis of the global automotive industry re-purposing during the COVID-19 pandemic," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 177(C).
    3. Ivanov, Dmitry, 2024. "Supply chain resilience: Conceptual and formal models drawing from immune system analogy," Omega, Elsevier, vol. 127(C).
    4. Khadija Echefaj & Abdelkabir Charkaoui & Anass Cherrafi & Dmitry Ivanov, 2024. "Design of resilient and viable sourcing strategies in intertwined circular supply networks," Annals of Operations Research, Springer, vol. 337(1), pages 459-498, June.
    5. Xiaoyan Xu & Suresh P. Sethi & Sai‐Ho Chung & Tsan‐Ming Choi, 2023. "Reforming global supply chain management under pandemics: The GREAT‐3Rs framework," Production and Operations Management, Production and Operations Management Society, vol. 32(2), pages 524-546, February.
    6. Ramani, Vinay & Ghosh, Debabrata & Sodhi, ManMohan S., 2022. "Understanding systemic disruption from the Covid-19-induced semiconductor shortage for the auto industry," Omega, Elsevier, vol. 113(C).
    7. Aldrighetti, Riccardo & Battini, Daria & Ivanov, Dmitry, 2023. "Efficient resilience portfolio design in the supply chain with consideration of preparedness and recovery investments," Omega, Elsevier, vol. 117(C).
    8. Li, Dong & Dong, Chuanwen, 2022. "Government regulations to mitigate the shortage of life-saving goods in the face of a pandemic," European Journal of Operational Research, Elsevier, vol. 301(3), pages 942-955.
    9. Brusset, Xavier & Ivanov, Dmitry & Jebali, Aida & La Torre, Davide & Repetto, Marco, 2023. "A dynamic approach to supply chain reconfiguration and ripple effect analysis in an epidemic," International Journal of Production Economics, Elsevier, vol. 263(C).
    10. Choudhury, Nishat Alam & Ramkumar, M. & Schoenherr, Tobias & Singh, Shalabh, 2023. "The role of operations and supply chain management during epidemics and pandemics: Potential and future research opportunities," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    11. Aditya Goenka & Lin Liu & Manh-Hung Nguyen, 2021. "Modeling optimal quarantines with waning immunity," Discussion Papers 21-10, Department of Economics, University of Birmingham.
    12. Muhammad Umar Farooq & Amjad Hussain & Tariq Masood & Muhammad Salman Habib, 2021. "Supply Chain Operations Management in Pandemics: A State-of-the-Art Review Inspired by COVID-19," Sustainability, MDPI, vol. 13(5), pages 1-33, February.
    13. Guihua Wang, 2022. "Stay at home to stay safe: Effectiveness of stay‐at‐home orders in containing the COVID‐19 pandemic," Production and Operations Management, Production and Operations Management Society, vol. 31(5), pages 2289-2305, May.
    14. Chowdhury, Priyabrata & Paul, Sanjoy Kumar & Kaisar, Shahriar & Moktadir, Md. Abdul, 2021. "COVID-19 pandemic related supply chain studies: A systematic review," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 148(C).
    15. Shaker Ardakani, Elham & Gilani Larimi, Niloofar & Oveysi Nejad, Maryam & Madani Hosseini, Mahsa & Zargoush, Manaf, 2023. "A resilient, robust transformation of healthcare systems to cope with COVID-19 through alternative resources," Omega, Elsevier, vol. 114(C).
    16. Babai, M. Zied & Ivanov, Dmitry & Kwon, Oh Kang, 2023. "Optimal ordering quantity under stochastic time-dependent price and demand with a supply disruption: A solution based on the change of measure technique," Omega, Elsevier, vol. 116(C).
    17. Dubey, Rameshwar & Bryde, David J. & Dwivedi, Yogesh K. & Graham, Gary & Foropon, Cyril & Papadopoulos, Thanos, 2023. "Dynamic digital capabilities and supply chain resilience: The role of government effectiveness," International Journal of Production Economics, Elsevier, vol. 258(C).
    18. Balezentis, Tomas & Zickiene, Agne & Volkov, Artiom & Streimikiene, Dalia & Morkunas, Mangirdas & Dabkiene, Vida & Ribasauskiene, Erika, 2023. "Measures for the viable agri-food supply chains: A multi-criteria approach," Journal of Business Research, Elsevier, vol. 155(PA).
    19. Vahdani, Behnam & Mohammadi, Mehrdad & Thevenin, Simon & Gendreau, Michel & Dolgui, Alexandre & Meyer, Patrick, 2023. "Fair-split distribution of multi-dose vaccines with prioritized age groups and dynamic demand: The case study of COVID-19," European Journal of Operational Research, Elsevier, vol. 310(3), pages 1249-1272.
    20. Katinka den Nijs & Jose Edivaldo & Bas D. L. Châtel & Jeroen F. Uleman & Marcel Olde Rikkert & Heiman Wertheim & Rick Quax, 2022. "A Global Sharing Mechanism of Resources: Modeling a Crucial Step in the Fight against Pandemics," IJERPH, MDPI, vol. 19(10), pages 1-17, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:120:y:2023:i:c:s0305048323000737. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.