Abstract
A novel two-period modeling approach is developed for supply chain disruption mitigation and recovery, where planning horizon is divided into two aggregate periods: Period 1, before a disruption and Period 2, after the disruption. The corresponding mitigation and recovery decisions are: (1) primary supply and demand portfolios and production before a disruption, and (2) recovery supply, transshipment and demand portfolios, and production after the disruption. The primary and recovery portfolios are determined simultaneously and for the integrated decision-making, a scenario-based stochastic MIP model is developed. The two-period model is compared with a multi-period one to account for a detailed timing of supplies and production. The findings indicate that for both two- and multi-period setting, the developed multi-portfolio approach leads to computationally efficient MIP models with an embedded network flow structure resulting in a very strong linear programming relaxation. The major managerial insights are provided at the end of this chapter.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Bukowski, L.: Reliable, Secure and Resilient Logistics Networks. Cham, Springer (2019)
Chan, J.C.C., Kroese, D.P.: Rare-event probability estimation with conditional Monte Carlo. Ann. Oper. Res. 189(1), 43–61 (2011)
Rajagopal, V., Venkatesan, S.P., Goh, M.: Decision-making models for supply chain risk mitigation: a review. Comput. Ind. Eng. 113, 646–682 (2017)
Ruiz-Torres, A.J., Mahmoodi, F., Zeng, A.Z.: Supplier selection model with contingency planning for supplier failures. Comput. Ind. Eng. 66, 374–382 (2013)
Sawik, T.: Scheduling in Supply Chains Using Mixed Integer Programming. Wiley, Hoboken (2011a)
Sawik, T.: Mixed integer programming approaches to planning and scheduling in electronics supply chains. Decis. Making Manuf. Services 11(1–2), 5–17 (2017a)
Sawik, T.: Disruption mitigation and recovery in supply chains using portfolio approach. OMEGA Int. J. Manag. Sci.84(4), 232–248 (2019a)
Sawik, T.: Two-period vs. multi-period model for supply chain disruption management. Int. J. Prod. Res. 57(14), 4502–4518 (2019b)
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2020 The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Sawik, T. (2020). Selection of Primary and Recovery Supply and Demand Portfolios and Scheduling: A Two-Period Approach. In: Supply Chain Disruption Management. International Series in Operations Research & Management Science, vol 291. Springer, Cham. https://doi.org/10.1007/978-3-030-44814-1_11
Download citation
DOI: https://doi.org/10.1007/978-3-030-44814-1_11
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-44813-4
Online ISBN: 978-3-030-44814-1
eBook Packages: Business and ManagementBusiness and Management (R0)