Emergency order planning to produce multi product under disruptions with single and multiple sourcing

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Article Type:
Research/Original Article (دارای رتبه معتبر)
Abstract:
Supply chains in the world are increasingly exposed to disruptions caused by disasters in every part of the world. The emergence of risk in today's business environment due to globalization, disruptions, poor infrastructure, forecast errors and various uncertainties affects every management decision. The present study was an attempt to propose an emergency order and production planning for a multi-product multi-item problem where products are made up of several ingredients. A side from the main supplier, the backup supplier can be used to supply each component where orders must be delivered within a certain time interval (specified time window). In the present study attempts are made to use sourcing strategies to realize supply chain flexibility under disruptions. A scenario-based mathematical model encompassing different uncertainties such as those arising from disruption and operational risks is formulated. A case study analysis is carried out to appraise the output of risk attitudes adopted by different decision-makers (both risk-neutral and risk-averse). The present study presents strategies to create flexible supply bases that diminish the cost of the worst scenario in the face of supply chain risks. By increasing the number of primary and supporting suppliers, VAR and C-VR values will increase, so the management offer is that the number of suppliers should be kept constant within acceptable limits to prevent a sharp increase in the number of suppliers. Suppliers should release orders in time by establishing time windows and setting deadlines in order to receive orders. Also, this paper shows that the values of VAR and C-VR decrease with the increase of primary supply capacity, and with the increase of primary supply capacity, costs are reduced by about 99%, which reduces the effect of disruption on the capacity of primary suppliers.
Language:
English
Published:
Journal of Industrial Engineering and Management Studies, Volume:10 Issue: 1, Winter-Spring 2023
Pages:
34 to 52
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