Real-Time Multiple Disruptions Management In a Multi-Level Supply Chain: A Recovery Planning Approach

Abstract

In today’s competitive world, supply chain management gains more attention every day. One of the most challenging topics in this field for managers and researchers is supply chain disruption management. When a disruption occurs in an echelon of a multi level supply chain, it may affect other echelon’s performance in that supply chain as well. The main objective of current research is helping decision makers to choose best supply, production and ordering quantity between echelons so that after disruption occurrence, SC recovers and returns to pre-disruption plan with minimum recovering costs.In this paper, production and retailers disruptions are studied and a mathematical recovery plan is designed with objective function of minimizing total cost of supply chain in the recovery period to help all members of the supply chain in returning to normal situation. The proposed model is solved in MATLAB 2011 by the suggested heuristic method as well as GAMS software. Finally, results of both solvers are compared which shows the applicability of heuristic method

Keywords

• supply chain
• production breakdown
• recovery planning
• disruption management
• retailer