Disruption management in production planning

Jian Yang, Xiangtong Qi, Gang Yu

Research output: Contribution to journalArticlepeer-review

88 Scopus citations

Abstract

We study the problem of recovering a production plan after a disruption, where the disruption may be caused by incidents such as power failure, market change, machine breakdown, supply shortage, worker no-show, and others. The new recovery plan we seek after has to not only suit the changed environment brought about by the disruption, but also be close to the initial plan so as not to cause too much customer unsatisfaction or inconvenience for current-stage and downstream operations. For the general-cost case, we propose a dynamic programming method for the problem. For the convex-cost case, a general problem which involves both cost and demand disruptions can be solved by considering the cost disruption first and then the demand disruption. We find that a pure demand disruption is easy to handle; and for a pure cost disruption, we propose a greedy method which is provably efficient. Our computational studies also reveal insights that will be helpful to managing disruptions in production planning.

Original languageEnglish (US)
Pages (from-to)420-442
Number of pages23
JournalNaval Research Logistics
Volume52
Issue number5
DOIs
StatePublished - Aug 2005
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Modeling and Simulation
  • Ocean Engineering
  • Management Science and Operations Research

Keywords

  • Inventory/production: uncertainty, deterministic
  • Networks/graphs: applications
  • Production/scheduling: planning

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