IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v237y2014i1p113-128.html
   My bibliography  Save this article

Real time disruption management for a two-stage batch production–inventory system with reliability considerations

Author

Listed:
  • Paul, Sanjoy Kumar
  • Sarker, Ruhul
  • Essam, Daryl

Abstract

In this research, a two-stage batch production–inventory system is introduced. In this system, the production may be disrupted, for a given period of time, either at one or both stages. In this paper, firstly, a mathematical model has been developed to suggest a recovery plan for a single occurrence of disruption at either stage. Secondly, multiple disruptions have been considered, for which a new disruption may or may not affect the recovery plan of earlier disruptions. We propose a new approach that deals with a series of disruptions over a period of time, which can be implemented for disruption recovery on a real time basis. In this approach, the model formulated for single disruption has been integrated to generate initial solutions for individual disruptions and the solutions have been revised for multiple dependent disruptions with changed parameters. With the proposed approach, an optimal recovery plan can be obtained in real time, whenever the production system experiences either a sudden disruption or a series of disruptions, at different points in time. Some numerical examples and a real-world case study are presented to explain the benefits of our proposed approach.

Suggested Citation

  • Paul, Sanjoy Kumar & Sarker, Ruhul & Essam, Daryl, 2014. "Real time disruption management for a two-stage batch production–inventory system with reliability considerations," European Journal of Operational Research, Elsevier, vol. 237(1), pages 113-128.
    • Handle: RePEc:eee:ejores:v:237:y:2014:i:1:p:113-128
    DOI: 10.1016/j.ejor.2014.02.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221714001209
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2014.02.005?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. Hill, Roger M., 2000. "On optimal two-stage lot sizing and inventory batching policies," International Journal of Production Economics, Elsevier, vol. 66(2), pages 149-158, June.
    2. Chiu, Singa Wang & Wang, Shan-Ling & Chiu, Yuan-Shyi Peter, 2007. "Determining the optimal run time for EPQ model with scrap, rework, and stochastic breakdowns," European Journal of Operational Research, Elsevier, vol. 180(2), pages 664-676, July.
    3. Donald D. Eisenstein, 2005. "Recovering Cyclic Schedules Using Dynamic Produce-Up-To Policies," Operations Research, INFORMS, vol. 53(4), pages 675-688, August.
    4. Qi, Xiangtong & Bard, Jonathan F. & Yu, Gang, 2004. "Supply chain coordination with demand disruptions," Omega, Elsevier, vol. 32(4), pages 301-312, August.
    5. Schmitt, Amanda J. & Snyder, Lawrence V. & Shen, Zuo-Jun Max, 2010. "Inventory systems with stochastic demand and supply: Properties and approximations," European Journal of Operational Research, Elsevier, vol. 206(2), pages 313-328, October.
    6. Sana, Shib Sankar, 2010. "A production-inventory model in an imperfect production process," European Journal of Operational Research, Elsevier, vol. 200(2), pages 451-464, January.
    7. Mohebbi, Esmail & Hao, Daipeng, 2008. "An inventory model with non-resuming randomly interruptible lead time," International Journal of Production Economics, Elsevier, vol. 114(2), pages 755-768, August.
    8. Mohebbi, Esmail & Hao, Daipeng, 2006. "When supplier's availability affects the replenishment lead time--An extension of the supply-interruption problem," European Journal of Operational Research, Elsevier, vol. 175(2), pages 992-1008, December.
    9. Kiesmüller, G.P. & de Kok, A.G. & Dabia, S., 2011. "Single item inventory control under periodic review and a minimum order quantity," International Journal of Production Economics, Elsevier, vol. 133(1), pages 280-285, September.
    10. Brian Tomlin, 2006. "On the Value of Mitigation and Contingency Strategies for Managing Supply Chain Disruption Risks," Management Science, INFORMS, vol. 52(5), pages 639-657, May.
    11. Chan, Gin Hor & Song, Yuyue, 2003. "A dynamic analysis of the single-item periodic stochastic inventory system with order capacity," European Journal of Operational Research, Elsevier, vol. 146(3), pages 529-542, May.
    12. Stephen C. Graves, 1999. "A Single-Item Inventory Model for a Nonstationary Demand Process," Manufacturing & Service Operations Management, INFORMS, vol. 1(1), pages 50-61.
    13. Kamran Moinzadeh & Prabhu Aggarwal, 1997. "Analysis of a Production/Inventory System Subject to Random Disruptions," Management Science, INFORMS, vol. 43(11), pages 1577-1588, November.
    14. S. Özekici & M. Parlar, 1999. "Inventory models with unreliable suppliersin a random environment," Annals of Operations Research, Springer, vol. 91(0), pages 123-136, January.
    15. Stephen C. Graves, 1999. "Addendum to "A Single-Item Inventory Model for a Nonstationary Demand Process"," Manufacturing & Service Operations Management, INFORMS, vol. 1(2), pages 174-174.
    16. Mohebbi, Esmail, 2004. "A replenishment model for the supply-uncertainty problem," International Journal of Production Economics, Elsevier, vol. 87(1), pages 25-37, January.
    17. Sana, Shib Sankar, 2010. "An economic production lot size model in an imperfect production system," European Journal of Operational Research, Elsevier, vol. 201(1), pages 158-170, February.
    18. Ishii, Kazuyoshi & Imori, Shigeki, 1996. "A production ordering system for two-item, two-stage, capacity-constraint production and inventory model," International Journal of Production Economics, Elsevier, vol. 44(1-2), pages 119-128, June.
    19. Cheng, T. C. E., 1989. "An economic production quantity model with flexibility and reliability considerations," European Journal of Operational Research, Elsevier, vol. 39(2), pages 174-179, March.
    20. Hishamuddin, H. & Sarker, R.A. & Essam, D., 2012. "A disruption recovery model for a single stage production-inventory system," European Journal of Operational Research, Elsevier, vol. 222(3), pages 464-473.
    21. Xiao, Tiaojun & Yu, Gang, 2006. "Supply chain disruption management and evolutionarily stable strategies of retailers in the quantity-setting duopoly situation with homogeneous goods," European Journal of Operational Research, Elsevier, vol. 173(2), pages 648-668, September.
    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. Li, Shanshan & He, Yong & Chen, Lujie, 2017. "Dynamic strategies for supply disruptions in production-inventory systems," International Journal of Production Economics, Elsevier, vol. 194(C), pages 88-101.
    2. Dmitry Ivanov & Boris Sokolov & Inna Solovyeva & Alexandre Dolgui & Ferry Jie, 2016. "Dynamic recovery policies for time-critical supply chains under conditions of ripple effect," International Journal of Production Research, Taylor & Francis Journals, vol. 54(23), pages 7245-7258, December.
    3. Taleizadeh, Ata Allah & Tafakkori, Keivan & Thaichon, Park, 2021. "Resilience toward supply disruptions: A stochastic inventory control model with partial backordering under the base stock policy," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    4. Md. Tariqul Islam & Abdullahil Azeem & Masum Jabir & Ananna Paul & Sanjoy Kumar Paul, 2022. "An inventory model for a three-stage supply chain with random capacities considering disruptions and supplier reliability," Annals of Operations Research, Springer, vol. 315(2), pages 1703-1728, August.
    5. Cao, Yunzhi & Zhu, Xiaoyan & Yan, Houmin, 2022. "Data-driven Wasserstein distributionally robust mitigation and recovery against random supply chain disruption," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    6. Ali, Syed Mithun & Rahman, Md. Hafizur & Tumpa, Tasmia Jannat & Moghul Rifat, Abid Ali & Paul, Sanjoy Kumar, 2018. "Examining price and service competition among retailers in a supply chain under potential demand disruption," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 40-47.
    7. Sanjoy Kumar Paul & Sobhan Asian & Mark Goh & S. Ali Torabi, 2019. "Managing sudden transportation disruptions in supply chains under delivery delay and quantity loss," Annals of Operations Research, Springer, vol. 273(1), pages 783-814, February.
    8. Dmitry Ivanov & Alexandre Dolgui & Boris Sokolov & Marina Ivanova, 2017. "Literature review on disruption recovery in the supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 55(20), pages 6158-6174, October.
    9. Chen, Li-Ming & Chang, Wei-Lun, 2021. "Supply- and cyber-related disruptions in cloud supply chain firms: Determining the best recovery speeds," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 151(C).
    10. 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.
    11. Cheramin, Meysam & Saha, Apurba Kumar & Cheng, Jianqiang & Paul, Sanjoy Kumar & Jin, Hongyue, 2021. "Resilient NdFeB magnet recycling under the impacts of COVID-19 pandemic: Stochastic programming and Benders decomposition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    12. Zhu, Xiaoyan & Cao, Yunzhi, 2021. "The optimal recovery-fund based strategy for uncertain supply chain disruptions: A risk-averse two-stage stochastic programming approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    13. Syed Mithun Ali & Asraf Arafin & Md. Abdul Moktadir & Towfique Rahman & Nuzhat Zahan, 2018. "Barriers to Reverse Logistics in the Computer Supply Chain Using Interpretive Structural Model," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 19(1), pages 53-68, March.
    14. Paul, Sanjoy Kumar & Sarker, Ruhul & Essam, Daryl, 2014. "Managing real-time demand fluctuation under a supplier–retailer coordinated system," International Journal of Production Economics, Elsevier, vol. 158(C), pages 231-243.
    15. A. Thangam, 2017. "Retailer’s optimal replenishment policy in a two-echelon supply chain under two-part delay in payments and disruption in delivery," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 8(1), pages 26-46, January.
    16. Sarker, Ruhul & Essam, Daryl, 2017. "A quantitative model for disruption mitigation in a supply chainAuthor-Name: Paul, Sanjoy Kumar," European Journal of Operational Research, Elsevier, vol. 257(3), pages 881-895.
    17. 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.
    18. 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.
    19. Ivanov, Dmitry & Pavlov, Alexander & Dolgui, Alexandre & Pavlov, Dmitry & Sokolov, Boris, 2016. "Disruption-driven supply chain (re)-planning and performance impact assessment with consideration of pro-active and recovery policies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 90(C), pages 7-24.
    20. Mahmoud Z. Mistarihi & Ghazi M. Magableh, 2023. "Prioritization of Supply Chain Capabilities Using the FAHP Technique," Sustainability, MDPI, vol. 15(7), pages 1-19, April.
    21. Bao, Xing & Diabat, Ali & Zheng, Zhongliang, 2020. "An ambiguous manager's disruption decisions with insufficient data in recovery phase," International Journal of Production Economics, Elsevier, vol. 221(C).
    22. Zou, Jing & Chang, Qing & Arinez, Jorge & Xiao, Guoxian, 2017. "Data-driven modeling and real-time distributed control for energy efficient manufacturing systems," Energy, Elsevier, vol. 127(C), pages 247-257.
    23. Aldrighetti, Riccardo & Battini, Daria & Ivanov, Dmitry & Zennaro, Ilenia, 2021. "Costs of resilience and disruptions in supply chain network design models: A review and future research directions," International Journal of Production Economics, Elsevier, vol. 235(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. Hishamuddin, Hawa & Sarker, Ruhul A. & Essam, Daryl, 2014. "A recovery mechanism for a two echelon supply chain system under supply disruption," Economic Modelling, Elsevier, vol. 38(C), pages 555-563.
    2. Hishamuddin, H. & Sarker, R.A. & Essam, D., 2012. "A disruption recovery model for a single stage production-inventory system," European Journal of Operational Research, Elsevier, vol. 222(3), pages 464-473.
    3. A. Thangam, 2017. "Retailer’s optimal replenishment policy in a two-echelon supply chain under two-part delay in payments and disruption in delivery," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 8(1), pages 26-46, January.
    4. 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.
    5. Saeed Poormoaied & Ece Zeliha Demirci, 2021. "Analysis of an inventory system with emergency ordering option at the time of supply disruption," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 43(4), pages 1007-1045, December.
    6. Paul, Sanjoy Kumar & Sarker, Ruhul & Essam, Daryl, 2014. "Managing real-time demand fluctuation under a supplier–retailer coordinated system," International Journal of Production Economics, Elsevier, vol. 158(C), pages 231-243.
    7. Sarker, Ruhul & Essam, Daryl, 2017. "A quantitative model for disruption mitigation in a supply chainAuthor-Name: Paul, Sanjoy Kumar," European Journal of Operational Research, Elsevier, vol. 257(3), pages 881-895.
    8. Shao, Xiao-Feng, 2012. "Demand-side reactive strategies for supply disruptions in a multiple-product system," International Journal of Production Economics, Elsevier, vol. 136(1), pages 241-252.
    9. 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.
    10. Azad, Nader & Hassini, Elkafi, 2019. "Recovery strategies from major supply disruptions in single and multiple sourcing networks," European Journal of Operational Research, Elsevier, vol. 275(2), pages 481-501.
    11. Taleizadeh, Ata Allah & Tafakkori, Keivan & Thaichon, Park, 2021. "Resilience toward supply disruptions: A stochastic inventory control model with partial backordering under the base stock policy," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    12. Ahiska, S. Sebnem & Appaji, Samyuktha R. & King, Russell E. & Warsing, Donald P., 2013. "A Markov decision process-based policy characterization approach for a stochastic inventory control problem with unreliable sourcing," International Journal of Production Economics, Elsevier, vol. 144(2), pages 485-496.
    13. E J Lodree Jr & S Taskin, 2008. "An insurance risk management framework for disaster relief and supply chain disruption inventory planning," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(5), pages 674-684, May.
    14. Snyder, Lawrence V., 2014. "A tight approximation for an EOQ model with supply disruptions," International Journal of Production Economics, Elsevier, vol. 155(C), pages 91-108.
    15. Soroush Saghafian & Mark P. Van Oyen, 2016. "Compensating for Dynamic Supply Disruptions: Backup Flexibility Design," Operations Research, INFORMS, vol. 64(2), pages 390-405, April.
    16. Lu, Mengshi & Huang, Simin & Shen, Zuo-Jun Max, 2011. "Product substitution and dual sourcing under random supply failures," Transportation Research Part B: Methodological, Elsevier, vol. 45(8), pages 1251-1265, September.
    17. Chen, Kebing & Xiao, Tiaojun, 2015. "Outsourcing strategy and production disruption of supply chain with demand and capacity allocation uncertainties," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 243-257.
    18. Mohebbi, Esmail, 2006. "A production-inventory model with randomly changing environmental conditions," European Journal of Operational Research, Elsevier, vol. 174(1), pages 539-552, October.
    19. Luangkesorn, K.L. & Klein, G. & Bidanda, B., 2016. "Analysis of production systems with potential for severe disruptions," International Journal of Production Economics, Elsevier, vol. 171(P4), pages 478-486.
    20. Prasanta Kumar Ghosh & Amalesh Kumar Manna & Jayanta Kumar Dey & Samarjit Kar, 2023. "Optimal production run in an imperfect production process with maintenance under warranty and product insurance," OPSEARCH, Springer;Operational Research Society of India, vol. 60(2), pages 720-752, June.

    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:ejores:v:237:y:2014:i:1:p:113-128. 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/locate/eor .

    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.