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Supply chain flexibility and operations optimisation under demand uncertainty: a case in disaster relief

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  • Ju Myung Song
  • Weiwei Chen
  • Lei Lei

Abstract

After a disaster happens, emergency response operations are critical to save humans’ lives and properties. The limited resources and time requirements call for coordinated supply chain operations. This paper studies supply chain operations for rescue kits in disaster reliefs, motivated by a real-world application. The objective is to minimise the total tardiness and peak tardiness of product delivery over the multi-period planning horizon. One major challenge is the lack of reliable prediction of customer demand in disasters. In order to cope with demand uncertainty while maintaining the tractability of the optimisation model, we decompose the demand into two components: a relatively stable base demand predicted by historical data and unpredictable demand surges. For the base demand, an optimisation model is developed to optimise the production and distribution operations, as well as the inventory replenishment policy for manufacturers and distribution centres, so as to minimise the total tardiness. For the demand surges, we propose to deploy supply chain flexibility to cope with the uncertainty. An empirical study shows the effectiveness of increasing supply chain flexibility and suggests some managerial insights on configuring such flexibility in emergency operations.

Suggested Citation

  • Ju Myung Song & Weiwei Chen & Lei Lei, 2018. "Supply chain flexibility and operations optimisation under demand uncertainty: a case in disaster relief," International Journal of Production Research, Taylor & Francis Journals, vol. 56(10), pages 3699-3713, May.
  • Handle: RePEc:taf:tprsxx:v:56:y:2018:i:10:p:3699-3713
    DOI: 10.1080/00207543.2017.1416203
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    Cited by:

    1. Katsoras, Efthymios & Georgiadis, Patroklos, 2022. "An integrated System Dynamics model for Closed Loop Supply Chains under disaster effects: The case of COVID-19," International Journal of Production Economics, Elsevier, vol. 253(C).
    2. Maciel M. Queiroz & Dmitry Ivanov & Alexandre Dolgui & Samuel Fosso Wamba, 2022. "Impacts of epidemic outbreaks on supply chains: mapping a research agenda amid the COVID-19 pandemic through a structured literature review," Annals of Operations Research, Springer, vol. 319(1), pages 1159-1196, December.
    3. Xia Liu & Yanhan Sun & Shengshi Zhou & Yu Li & Shan Zhuang, 2024. "Research on time-value-oriented business model innovation path in life services enterprises and its impact on customer perceived value," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    4. Qing Yang & Lei Xiong & Yanfeng Li & Qian Chen & Yijing Yu & Jingyang Wang, 2022. "Contract Coordination of Fresh Agri-Product Supply Chain under O2O Model," Sustainability, MDPI, vol. 14(14), pages 1-20, July.
    5. Arsalan Zahid Piprani & Noor Ismawati Jaafar & Suhana Mohezar Ali & Muhammad Shujaat Mubarik & Muhammad Shahbaz, 2022. "Multi-dimensional supply chain flexibility and supply chain resilience: the role of supply chain risks exposure," Operations Management Research, Springer, vol. 15(1), pages 307-325, June.
    6. Helmer Paz-Orozco & Irineu de Brito Junior & Mario Chong & Yesid Anacona-Mopan & Jhon Alexander Segura Dorado & Mariana Moyano, 2023. "Earthquake Decision-Making Tool for Humanitarian Logistics Network: An Application in Popayan, Colombia," Logistics, MDPI, vol. 7(4), pages 1-18, October.
    7. Marta Pérez-Pérez & Canan Kocabasoglu-Hillmer & Ana María Serrano-Bedia & María Concepción López-Fernández, 2019. "Manufacturing and Supply Chain Flexibility: Building an Integrative Conceptual Model Through Systematic Literature Review and Bibliometric Analysis," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(1), pages 1-23, December.
    8. Dmitry Ivanov, 2022. "Viable supply chain model: integrating agility, resilience and sustainability perspectives—lessons from and thinking beyond the COVID-19 pandemic," Annals of Operations Research, Springer, vol. 319(1), pages 1411-1431, December.
    9. Lin Chen & Ting Dong & Jin Peng & Dan Ralescu, 2023. "Uncertainty Analysis and Optimization Modeling with Application to Supply Chain Management: A Systematic Review," Mathematics, MDPI, vol. 11(11), pages 1-45, May.
    10. Jie Zhang & Yifan Zhu & Xiaobo Li & Mengjun Ming & Weiping Wang & Tao Wang, 2022. "Multi-Trip Time-Dependent Vehicle Routing Problem with Split Delivery," Mathematics, MDPI, vol. 10(19), pages 1-24, September.
    11. Merve Cengiz Toklu, 2023. "A fuzzy multi-criteria approach based on Clarke and Wright savings algorithm for vehicle routing problem in humanitarian aid distribution," Journal of Intelligent Manufacturing, Springer, vol. 34(5), pages 2241-2261, June.
    12. Jie Zhang & Yifan Zhu & Tao Wang & Weiping Wang & Rui Wang & Xiaobo Li, 2022. "An Improved Intelligent Auction Mechanism for Emergency Material Delivery," Mathematics, MDPI, vol. 10(13), pages 1-30, June.
    13. Rohit Kumar Singh & Sudhanshu Joshi & Manu Sharma, 2023. "Modelling Supply Chain Flexibility in the Indian Personal Hygiene Industry: An ISM-Fuzzy MICMAC Approach," Global Business Review, International Management Institute, vol. 24(5), pages 1058-1075, October.
    14. Mohammed Alkahtani & Muhammad Omair & Qazi Salman Khalid & Ghulam Hussain & Imran Ahmad & Catalin Pruncu, 2021. "A COVID-19 Supply Chain Management Strategy Based on Variable Production under Uncertain Environment Conditions," IJERPH, MDPI, vol. 18(4), pages 1-23, February.
    15. Altay, Nezih & Narayanan, Arunachalam, 2022. "Forecasting in humanitarian operations: Literature review and research needs," International Journal of Forecasting, Elsevier, vol. 38(3), pages 1234-1244.
    16. Jung-Fa Tsai & Chin-Po Wang & Ming-Hua Lin & Shih-Wei Huang, 2021. "Analysis of Key Factors for Supplier Selection in Taiwan’s Thin-Film Transistor Liquid-Crystal Displays Industry," Mathematics, MDPI, vol. 9(4), pages 1-18, February.
    17. Efthymios Katsoras & Patroklos Georgiadis, 2022. "A Dynamic Analysis for Mitigating Disaster Effects in Closed Loop Supply Chains," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    18. Shekarian, Mansoor & Reza Nooraie, Seyed Vahid & Parast, Mahour Mellat, 2020. "An examination of the impact of flexibility and agility on mitigating supply chain disruptions," International Journal of Production Economics, Elsevier, vol. 220(C).
    19. Khouja, Moutaz & Hammami, Ramzi, 2023. "Building viable stockpiles of personnel protective equipment," European Journal of Operational Research, Elsevier, vol. 307(3), pages 1206-1224.
    20. Fatemeh Faghih-Mohammadi & Mohammad Mahdi Nasiri & Dinçer Konur, 2023. "Cross-dock facility for disaster relief operations," Annals of Operations Research, Springer, vol. 322(1), pages 497-538, March.
    21. Polater, Abdüssamet, 2020. "Airports’ role as logistics centers in humanitarian supply chains: A surge capacity management perspective," Journal of Air Transport Management, Elsevier, vol. 83(C).

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