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Optimal production and inventory decisions under demand and production disruptions

Author

Listed:
  • Xiaoling Xu
  • Jennifer Shang
  • Haiyan Wang
  • Wen-Chyuan Chiang

Abstract

Unanticipated events may take place and disrupt demand and/or production in a supply chain. Conditional on the type, magnitude and duration of disruptions, changes may be called to revise the original production plan. We analyse different disruption scenarios and propose optimal production--inventory models for products facing demand and production disruptions. To lower the cost, we optimise the production run time, purchasing times and order quantity for the manufacturer. Numerical experiments are conducted to examine the influences of disruption time and magnitude on optimal production and purchasing decisions.

Suggested Citation

  • Xiaoling Xu & Jennifer Shang & Haiyan Wang & Wen-Chyuan Chiang, 2016. "Optimal production and inventory decisions under demand and production disruptions," International Journal of Production Research, Taylor & Francis Journals, vol. 54(1), pages 287-301, January.
  • Handle: RePEc:taf:tprsxx:v:54:y:2016:i:1:p:287-301
    DOI: 10.1080/00207543.2015.1073402
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    Cited by:

    1. Mao Zheng & Ningning Cui & Yibin Zhang & Fangfang Zhang & Victor Shi, 2023. "Inventory Policies and Supply Chain Coordination under Logistics Route Disruption Risks," Sustainability, MDPI, vol. 15(13), pages 1-20, June.
    2. Choi, Tsan-Ming & Shi, Xiutian, 2022. "Reducing supply risks by supply guarantee deposit payments in the fashion industry in the “new normal after COVID-19”," Omega, Elsevier, vol. 109(C).
    3. Pi, Zhenyang & Fang, Weiguo & Perera, Sandun C. & Zhang, Baofeng, 2022. "Enhancing the online buyer perception of consumer experience products in a dual-channel supply chain: A new role of free-riding," International Journal of Production Economics, Elsevier, vol. 253(C).
    4. Konstantaras, Ioannis & Skouri, Konstantina & Benkherouf, Lakdere, 2021. "Optimizing inventory decisions for a closed–loop supply chain model under a carbon tax regulatory mechanism," International Journal of Production Economics, Elsevier, vol. 239(C).

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