A Recovery Strategy in Manufacturing Supply Chains for Long-term Supply Disruption

This paper presents a recovery strategy in manufacturing supply chains that copes with long-term supply disruptions such as those caused by the recent global outbreak of COVID-19 through a combination of product composition changes and safety inventory. A mixed integer programming model is developed for alternative supplier purchase order allocations and manufacturer production order allocations to minimize the profit loss caused by product composition changes after supply disruptions. A solution method that combines the ILOG CPLEX and MATLAB to be used to solve the model. The computational results show that the proposed recovery strategy can effectively reduce the loss of manufacturer after prolonged supply disruptions. The proposed model can help managers consider the optimal recovery strategy when the manufacturing supply chain experiences a long-term disruption.