Optimization of Supply Chains Under Different Labor Constraints

In this chapter, supply chain network optimization models are constructed, which include labor as an important variable in the network economic activity links, along with associated capacities under distinct sets of constraints. Labor is a critical resource in supply chains from production to transportation, storage, and distribution. In a pandemic, or other disaster settings, and even in peace time, the availability of labor for different supply chain network activities may be disrupted due to illness, fear of contagion, morbidity, necessity of social distancing, unwillingness or inability to work, childcare or caretaker issues, a strike, etc. The modeling framework in this chapter considers, first, elastic demands for a product and, subsequently, fixed demands, since some products may be more or less price elastic. The supply chain network framework, which includes electronic commerce, is relevant to many products such as protective personal and medical equipment, as well as to particular nonperishable food items. It is also relevant to disaster scenarios outside of pandemics, such as conflicts and wars, where labor may need to be reallocated to different supply chain network activities. Theoretical results as well as computed numerical examples are presented. In addition, a supply chain network efficiency measure is constructed that allows for the importance identification (and ranking) of nodes, links, or a combination thereof. Resilience measures are proposed and applied to quantify the resilience of a supply chain network to disruptions in labor.