A quantitative mitigation model for supply chain disruptions considering reconfiguration

In recent years, global supply chains have faced great challenges due to emergencies. A manufacturer is the core of a supply chain and its disruption will cause more damage to the supply chain. This work investigates the problem of reduced production capacity in some of a manufacturer’s factories affected by disruptions, and reconfigures the supply chain by introducing production lines and expanding capacity in factories not affected by the disruptions. A supply chain disruption mitigation model is developed with the objectives of minimizing cost and maximizing system resilience. To characterize the supply chain system resilience, a resilience metric is constructed. To efficiently solve the developed model, an improved NSGA-II algorithm is developed. The algorithm ensures the feasibility of the solution and improves the solution efficiency through improved heuristic rules and specific restoration strategies. The effectiveness of the proposed model and solution algorithm is verified through numerical experiments. This work can offer a potentially useful tool to help the manufacturers reduce losses whenever the supply chain system experiences production disruptions.