A disruption recovery plan in a three-stage production-inventory system. (May 2015)

• Record Type: Journal Article
• Authors: Paul, Sanjoy Kumar; Sarker, Ruhul; Essam, Daryl
• Is Part Of: Computers & operations research. Volume 57(2015)
• Page Start: 60
• Page End: 72
• Publication Date: 2015-05
• Subjects: Production-inventory system -- Disruption recovery -- Mixed-production environment -- Heuristic -- Pattern search; Operations research -- Periodicals; Electronic digital computers -- Periodicals; 004.05
• DOI: 10.1016/j.cor.2014.12.003
• Languages: English
• ISSNs: 0305-0548

Abstract

Abstract: This paper proposes a recovery plan for managing disruptions in a three-stage production-inventory system under a mixed production environment. First, a mathematical model is developed to deal with a disruption at any stage while maximizing total profit during the recovery-time window. The model is solved after the occurrence of a disruption event, with changed data used to generate a revised plan. We also propose a new and efficient heuristic for solving the developed mathematical model. Second, multiple disruptions are considered, where a new disruption may or may not affect the recovery plans of earlier disruptions. The heuristic, developed for a single disruption, is extended to deal with a series of disruptions so that it can be implemented for disruption recovery on a real-time basis. We compare the heuristic solutions with those obtained by a standard search algorithm for a set of randomly generated disruption test problems, and that show the consistent performance of our developed heuristic with lower computational times. Finally, some numerical examples and a real-world case study are presented to demonstrate the benefits and usefulness of our proposed approach.