Complexity 2020:1-12 (2020)
AbstractMajor events such as the COVID-19 pandemic, Olympic Games, and G20 Summit bring about supplier disruption risks and challenges to supply chain management. To help deal with these risks, a virtual dual-sourcing production-inventory system can be deployed. In this paper, we study such a system which consists of a raw material supplier, a manufacturer, and a virtual dual-sourcing contingency supplier. The manufacturer needs to determine the production, procurement, and inventory plan of raw materials. When its supplier is interrupted, the manufacturer may need to adjust the production and inventory plan and work with the contingency supplier. We develop a system dynamics method to simulate the operations in this production-inventory system to identify the approximately optimal order-up-to-level inventory policies. We find that the virtual dual production-inventory strategy can be the optimal contingency policy to deal with supplier dynamic disruption risks. Furthermore, for disruption risk with low frequency and long duration, the manufacturer should increase the safety inventory level before the disruption. Otherwise, it should increase the safety inventory level in every cycle.
Similar books and articles
Fuzzy Approach to Decision Support System Design for Inventory Control and Management.Mohuya Dev, Prabjot Kaur & Kandarpa Kumar Sarma - 2019 - Journal of Intelligent Systems 28 (4):549-557.
Simulation and Analysis of the Complex Behavior of Supply Chain Inventory System Based on Third-Party Logistics Management Inventory Model with No Accumulating of Unsatisfied Demand.Zusheng Zhang, Xu Wang, Qianqian Guo, Zhenrui Li & Yingbo Wu - 2019 - Complexity 2019:1-18.
Supply Chain Strategies and Carbon Intensity: The Roles of Process Leanness, Diversification Strategy, and Outsourcing.Chien-Ming Chen - 2017 - Journal of Business Ethics 143 (3):603-620.
Ab-Ag Affinity Thresholds in Inventory Optimization.Rajani R. Joshi - 1994 - Acta Biotheoretica 42 (4):295-313.
The Impact of Risk Attitude, Uncertainty and Disequilibria on Optimal Production and Inventory.Karl Aiginger - 1985 - Theory and Decision 19 (1):51-75.
Use of Stability and Seasonality Analysis for Optimal Inventory Prediction Models.Pawan Lingras, Manish Joshi & Peng Zhang - 2011 - Journal of Intelligent Systems 20 (2):147-166.
Optimizing Firm Inventory Costs as a Fuzzy Problem.Dariusz Kacprzak & Witold Kosiński - 2014 - Studies in Logic, Grammar and Rhetoric 37 (1):89-105.
Optimization of Commodity Stocks Enterprise by Means of HML-FRM Clustering.Igor Britchenko & Maksym Bezpartochnyi - 2020 - Financial and Credit Activity: Problems of Theory and Practice 3 (34(2020)):259-269.
A Structured Review of Quantitative Models of the Pharmaceutical Supply Chain.Carlos Franco & Edgar Alfonso-Lizarazo - 2017 - Complexity:1-13.
Effects of Institutional Pressures on the Governance of Food Safety in Emerging Food Supply Chains: A Case of Lebanese Food Processors.Gumataw Kifle Abebe - 2020 - Agriculture and Human Values 37 (4):1125-1138.
Ramus and Talon Inventory: A Short-Title Inventory of the Published Works of Peter Ramus (1515-1572) and of Omer Talon (Ca. 1510-1562) in Their Original and in Their Variously Altered Forms: With Related Material, 1. The Ramist Controversies, a Descriptive Catalogue, 2. Agricola Check List, a Short-Title Inventory of Some Printed Editions and Printed Compendia of Rudolph Agricola's Dialectical Invention (De Inventione Dialectica). [REVIEW]Walter J. Ong - 1977 - Norwood Editions.
A Comparative Analysis of the "O'neill Educational Ideologies Inventory" and the "Ross Educational Philosophical Inventory.".Karen Lee Drinkard - 1975 - Dissertation, University of Southern California
Added to PP
Historical graph of downloads