The Optimization of a Virtual Dual Production‐Inventory System under Dynamic Supply Disruption Risk

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dc.creatorChen, Yu
dc.creatorLiu, Liyuan
dc.creatorShi, Victor
dc.creatorZhang, Yibin
dc.creatorZhu, Jing
dc.date2020-12-27T08:00:13Z
dc.date2020-12-27T08:00:13Z
dc.date2020-12-24
dc.date2020-12-27T08:00:08Z
dc.date.accessioned2026-08-03T01:26:21Z
dc.descriptionMajor events such as the COVID-19 pandemic, Olympic Games, and G20 Summit bring about supplier disruption risks and challenges to supply chain management. To help deal with these risks, a virtual dual-sourcing production-inventory system can be deployed. In this paper, we study such a system which consists of a raw material supplier, a manufacturer, and a virtual dual-sourcing contingency supplier. The manufacturer needs to determine the production, procurement, and inventory plan of raw materials. When its supplier is interrupted, the manufacturer may need to adjust the production and inventory plan and work with the contingency supplier. We develop a system dynamics method to simulate the operations in this production-inventory system to identify the approximately optimal order-up-to-level inventory policies. We find that the virtual dual production-inventory strategy can be the optimal contingency policy to deal with supplier dynamic disruption risks. Furthermore, for disruption risk with low frequency and long duration, the manufacturer should increase the safety inventory level before the disruption. Otherwise, it should increase the safety inventory level in every cycle.
dc.descriptionPeer Reviewed
dc.formattext/xml
dc.formatapplication/pdf
dc.identifierYu Chen, Liyuan Liu, Victor Shi, Yibin Zhang, and Jing Zhu, “The Optimization of a Virtual Dual Production-Inventory System under Dynamic Supply Disruption Risk,” Complexity, vol. 2020, Article ID 7067502, 12 pages, 2020. doi:10.1155/2020/7067502
dc.identifier1076-2787
dc.identifierhttps://www.repository.cam.ac.uk/handle/1810/315621
dc.identifier10.17863/CAM.62727
dc.identifier1099-0526
dc.identifier.urihttps://repo.dare.co.zw/handle/123456789/153912
dc.languageeng
dc.languageen
dc.publisherHindawi
dc.publisherhttps://doi.org/10.1155/2020/7067502
dc.rightsCopyright © 2020 Yu Chen et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
dc.subject4901 Applied Mathematics
dc.subject49 Mathematical Sciences
dc.titleThe Optimization of a Virtual Dual Production‐Inventory System under Dynamic Supply Disruption Risk
dc.typeJournal Article

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