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Optimization of supply chain networks with inclusion of labor: Applications to COVID-19 pandemic disruptions

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  • Nagurney, Anna

Abstract

In this paper, we respond to the COVID-19 pandemic by constructing supply chain network optimization models, which explicitly include labor as an important variable in the network economic activity links, along with associated capacities. Labor is a critical resource in supply chains from production to transportation, storage, and distribution. In a pandemic, the availability of labor for different supply chain network activities may be disrupted due to illness, fear of contagion, morbidity, necessity of social/physical distancing, etc. The modeling framework considers first elastic demands for a product and then fixed demands, coupled with distinct types of labor capacities in order to capture the availability of this valuable resource in a pandemic, as well as possible flexibility. The supply chain network framework, which includes electronic commerce, is relevant to many different supply chain applications including protective personal and medical equipment, as well as to particular food items. Theoretical results as well as computed numerical examples are presented.

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  • Nagurney, Anna, 2021. "Optimization of supply chain networks with inclusion of labor: Applications to COVID-19 pandemic disruptions," International Journal of Production Economics, Elsevier, vol. 235(C).
    • Handle: RePEc:eee:proeco:v:235:y:2021:i:c:s0925527321000566
    DOI: 10.1016/j.ijpe.2021.108080
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    References listed on IDEAS

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    1. Nagurney, Anna, 2009. "A system-optimization perspective for supply chain network integration: The horizontal merger case," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(1), pages 1-15, January.
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    6. Nagurney, Anna, 2010. "Optimal supply chain network design and redesign at minimal total cost and with demand satisfaction," International Journal of Production Economics, Elsevier, vol. 128(1), pages 200-208, November.
    7. Mishra, SK, 2007. "A Brief History of Production Functions," MPRA Paper 5254, University Library of Munich, Germany.
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