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A reactive mitigation approach for managing supply disruption in a three-tier supply chain

Author

Listed:
  • Sanjoy Kumar Paul

    (RMIT University)

  • Ruhul Sarker

    (The University of New South Wales)

  • Daryl Essam

    (The University of New South Wales)

Abstract

In this paper, we develop a quantitative reactive mitigation approach for managing supply disruption for a supply chain. We consider a three-tier supply chain system with multiple raw material suppliers, a single manufacturer and multiple retailers, where the system may face sudden disruption in its raw material supply. First, we develop a mathematical model that generates a recovery plan after the occurrence of a single 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 develop an efficient heuristic to solve the model for a single disruption. Second, we also consider multiple disruptions, where a new disruption may or may not affect the recovery plans of earlier disruptions. We also develop a new dynamic mathematical and heuristic approach that is capable of dealing with multiple disruptions, after the occurrence of each disruption as a series, on a real-time basis. We compare the heuristic solutions with those obtained by a standard search algorithm for a set of randomly generated disruption test problems, which shows the consistent performance of our heuristic. Finally, a simulation model is developed to analyze the effect of randomly generated disruption events that are not known in advance. The numerical results and many random experiments are presented to explain the usefulness of the developed models and methodologies.

Suggested Citation

  • Sanjoy Kumar Paul & Ruhul Sarker & Daryl Essam, 2018. "A reactive mitigation approach for managing supply disruption in a three-tier supply chain," Journal of Intelligent Manufacturing, Springer, vol. 29(7), pages 1581-1597, October.
    • Handle: RePEc:spr:joinma:v:29:y:2018:i:7:d:10.1007_s10845-016-1200-7
    DOI: 10.1007/s10845-016-1200-7
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    References listed on IDEAS

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    Cited by:

    1. Guo, Haidong & Wang, Shengyu & Zhang, Yu, 2021. "Supply interruption supply chain network model with uncertain demand: an application of chance-constrained programming with fuzzy parameters," LSE Research Online Documents on Economics 114936, London School of Economics and Political Science, LSE Library.
    2. Na Wang & Jingze Chen & Hongfeng Wang, 2023. "Resilient Supply Chain Optimization Considering Alternative Supplier Selection and Temporary Distribution Center Location," Mathematics, MDPI, vol. 11(18), pages 1-22, September.
    3. Dorijan Naletina, 2021. "Impact Of Disruption In The Supply Chain On The Flexible Packaging Industry During The Covid-19 Pandemic (Uticaj Disrupcija U Lancu Snabdevanja Unutar Industrije Fleksibilne Ambalaže Uzrokovanih Pande," Ekonomske ideje i praksa, Faculty of Economics and Business, University of Belgrade, issue 42, pages 73-89, September.
    4. Md. Tarek Chowdhury & Aditi Sarkar & Sanjoy Kumar Paul & Md. Abdul Moktadir, 2022. "A case study on strategies to deal with the impacts of COVID-19 pandemic in the food and beverage industry," Operations Management Research, Springer, vol. 15(1), pages 166-178, June.
    5. Yixin Zhang & Xifu Wang, 2021. "Optimal pricing and sourcing strategies in the presence of supply uncertainty and competition," Journal of Intelligent Manufacturing, Springer, vol. 32(1), pages 61-76, January.
    6. Hu, Man & Liu, Xue-Xin & Jia, Fu, 2024. "Optimal Emergency Order Policy for Supply Disruptions in the Semiconductor Industry," International Journal of Production Economics, Elsevier, vol. 272(C).
    7. Sanjoy Kumar Paul & Ruhul Sarker & Daryl Essam & Paul Tae-Woo Lee, 2019. "A mathematical modelling approach for managing sudden disturbances in a three-tier manufacturing supply chain," Annals of Operations Research, Springer, vol. 280(1), pages 299-335, September.
    8. Sanjoy Kumar Paul & Priyabrata Chowdhury, 2020. "Strategies for Managing the Impacts of Disruptions During COVID-19: an Example of Toilet Paper," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(3), pages 283-293, September.

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