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Supply chain design under quality disruptions and tainted materials delivery

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  • Madadi, AliReza
  • Kurz, Mary E.
  • Mason, Scott J.
  • Taaffe, Kevin M.

Abstract

Events such as the 2008 Heparin tragedy, in which patients lost their lives due to tainted pharmaceuticals, highlight the necessity for supply chain designers and planners to consider the risk of even low probability incidents in supply chains. The goal of this research is to design a single-period, single-product supply chain model with capacitated facilities to hedge against the possibility of sending tainted materials to consumers. Given that our mixed-integer stochastic model is NP-hard, we develop efficient heuristic and metaheuristic algorithms to obtain acceptable solutions. Computational experience is presented and discussed.

Suggested Citation

  • Madadi, AliReza & Kurz, Mary E. & Mason, Scott J. & Taaffe, Kevin M., 2014. "Supply chain design under quality disruptions and tainted materials delivery," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 105-123.
    • Handle: RePEc:eee:transe:v:67:y:2014:i:c:p:105-123
    DOI: 10.1016/j.tre.2014.04.006
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    Cited by:

    1. Li, Guo & Zhang, Lijun & Guan, Xu & Zheng, Junjun, 2016. "Impact of decision sequence on reliability enhancement with supply disruption risks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 90(C), pages 25-38.
    2. Oleg Sokolinskiy & Benjamin Melamed & Ben Sopranzetti, 2018. "Precautionary replenishment in financially-constrained inventory systems subject to credit rollover risk and supply disruption," Annals of Operations Research, Springer, vol. 271(2), pages 971-997, December.
    3. Rashidi, Eghbal & Parsafard, Mohsen & Medal, Hugh & Li, Xiaopeng, 2016. "Optimal traffic calming: A mixed-integer bi-level programming model for locating sidewalks and crosswalks in a multimodal transportation network to maximize pedestrians’ safety and network usability," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 33-50.
    4. Daniel Arturo Olivares Vera & Elias Olivares-Benitez & Eleazar Puente Rivera & Mónica López-Campos & Pablo A. Miranda, 2018. "Combined Use of Mathematical Optimization and Design of Experiments for the Maximization of Profit in a Four-Echelon Supply Chain," Complexity, Hindawi, vol. 2018, pages 1-25, April.
    5. Salehi Sadghiani, N. & Torabi, S.A. & Sahebjamnia, N., 2015. "Retail supply chain network design under operational and disruption risks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 75(C), pages 95-114.
    6. Hasani, Aliakbar & Khosrojerdi, Amirhossein, 2016. "Robust global supply chain network design under disruption and uncertainty considering resilience strategies: A parallel memetic algorithm for a real-life case study," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 87(C), pages 20-52.

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