Optimal production and inventory decisions under demand and production disruptions

Xiaoling Xu, Jennifer Shang, Haiyan Wang and Wen-Chyuan Chiang

International Journal of Production Research, 2016, vol. 54, issue 1, 287-301

Abstract: Unanticipated events may take place and disrupt demand and/or production in a supply chain. Conditional on the type, magnitude and duration of disruptions, changes may be called to revise the original production plan. We analyse different disruption scenarios and propose optimal production--inventory models for products facing demand and production disruptions. To lower the cost, we optimise the production run time, purchasing times and order quantity for the manufacturer. Numerical experiments are conducted to examine the influences of disruption time and magnitude on optimal production and purchasing decisions.

Date: 2016
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Citations: View citations in EconPapers (4)

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DOI: 10.1080/00207543.2015.1073402

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