Coordinating supply chain distribution in the presence of production disruption risks

Abstract

With the impacts of unexpected events, production processes of supply chain system may be forced to interrupt in a certain period, which may decrease the supply capacity of manufacturer to its retailers. This paper discusses methods to distribute the limited stock in case the production disruptions occur. To ascertain a reasonable replenish sequence and quantity after the production disruption, a production disruption-oriented supply chain distribution model is offered, which can be used to minimize the negative impact of production disruption to supply chain system. And then a constraint satisfaction optimization method is established to resolve the model. Finally, validity of the model is verified with an actual application in an air-conditioner factory in China.