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Disruption management in production planning

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  • Jian Yang
  • Xiangtong Qi
  • Gang Yu

Abstract

We study the problem of recovering a production plan after a disruption, where the disruption may be caused by incidents such as power failure, market change, machine breakdown, supply shortage, worker no‐show, and others. The new recovery plan we seek after has to not only suit the changed environment brought about by the disruption, but also be close to the initial plan so as not to cause too much customer unsatisfaction or inconvenience for current‐stage and downstream operations. For the general‐cost case, we propose a dynamic programming method for the problem. For the convex‐cost case, a general problem which involves both cost and demand disruptions can be solved by considering the cost disruption first and then the demand disruption. We find that a pure demand disruption is easy to handle; and for a pure cost disruption, we propose a greedy method which is provably efficient. Our computational studies also reveal insights that will be helpful to managing disruptions in production planning. © 2005 Wiley Periodicals, Inc. Naval Research Logistics, 2005.

Suggested Citation

  • Jian Yang & Xiangtong Qi & Gang Yu, 2005. "Disruption management in production planning," Naval Research Logistics (NRL), John Wiley & Sons, vol. 52(5), pages 420-442, August.
    • Handle: RePEc:wly:navres:v:52:y:2005:i:5:p:420-442
    DOI: 10.1002/nav.20087
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    3. 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.
    4. Pan, Fei & Pan, Shenle & Zhou, Wei & Fan, Tijun, 2022. "Perishable product bundling with logistics uncertainty: Solution based on physical internet," International Journal of Production Economics, Elsevier, vol. 244(C).
    5. Q Mu & Z Fu & J Lysgaard & R Eglese, 2011. "Disruption management of the vehicle routing problem with vehicle breakdown," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(4), pages 742-749, April.
    6. Wenchang Luo & Taibo Luo & Randy Goebel & Guohui Lin, 2018. "Rescheduling due to machine disruption to minimize the total weighted completion time," Journal of Scheduling, Springer, vol. 21(5), pages 565-578, October.
    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. Puchkova, Alena & McFarlane, Duncan & Srinivasan, Rengarajan & Thorne, Alan, 2020. "Resilient planning strategies to support disruption-tolerant production operations," International Journal of Production Economics, Elsevier, vol. 226(C).

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