Resilient planning strategies to support disruption-tolerant production operations

Alena Puchkova, Duncan McFarlane, Rengarajan Srinivasan and Alan Thorne

International Journal of Production Economics, 2020, vol. 226, issue C

Abstract: The challenge being addressed in this paper is how best to prepare production for the potential disruptive events in order to minimise the impact of these unexpected disturbances. In particular, the paper is focusing on two particular approaches to disruption preparation. The first examines the optimal location and quantity of inventory or “work-in-progress”. The second explores the role of inspection stations in providing timely warning of quality issues. A mathematical model of the operations of a production system is suggested, which covers several types of disruptions: resource breakdowns with unknown start time, product quality losses and random demand fluctuations. The optimal solution minimises a total cost objective function, which is made up of production costs, inventory holding costs, inspection costs, as well as penalty costs for the lost or uncompleted orders. As an output, the model gives the best location and quantity of inventory and the best location of inspection points for any arbitrary production system. The model is first formulated as an optimal control problem, and it is shown how to transform it to a quadratic integer programming problem. The approach was applied to study an industrial strength laboratory production system that reflects the actual industrial disruption scenarios experienced by an industrial collaborator in a key production facility. The optimal solution for this laboratory system is presented and its evaluation is shown under several scenarios with disruptions. The model was also tested on large scale production systems with up to 500 resources.

Keywords: Resilience; Buffer allocation; Inspection station allocation; Production network; Disruptions; Modelling; Optimal control (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:226:y:2020:i:c:s0925527320300025

DOI: 10.1016/j.ijpe.2020.107614

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