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Designing safety space in a supply chain to handle system‐wide disruptions

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  • Murthy Mudrageda
  • Frederic H. Murphy

Abstract

In some supply chains serious disruptions are system wide. This happens during periods of severe weather, as when storms cause shuttle tankers serving oil platforms in the North Sea to stop movements of crude oil, barges are frozen in the Mississippi, or all airplanes are grounded after a blizzard. Other notable instances of system‐wide disruption happened after the attack on the World Trade Center when all aircraft were grounded and the natural gas and crude‐oil pipelines were tangled by hurricanes in 2005. We model a situation where shutting down supply facilities is very difficult and expensive because of excessive inventory buildup from an inability to move out the production. We present a planning model that balances the cost of spare capacity versus shutting down production when planning for disruptions. The model uses an assignment model embedded in a simulation. © 2006 Wiley Periodicals, Inc. Naval Research Logistics, 2007

Suggested Citation

  • Murthy Mudrageda & Frederic H. Murphy, 2007. "Designing safety space in a supply chain to handle system‐wide disruptions," Naval Research Logistics (NRL), John Wiley & Sons, vol. 54(3), pages 258-264, April.
    • Handle: RePEc:wly:navres:v:54:y:2007:i:3:p:258-264
    DOI: 10.1002/nav.20203
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    1. Jingwen Li & Ke Jing & Myroslav Khimich & Lixin Shen, 2023. "Optimization of Green Containerized Grain Supply Chain Transportation Problem in Ukraine Considering Disruption Scenarios," Sustainability, MDPI, vol. 15(9), pages 1-21, May.

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