A disruption recovery model for a single stage production-inventory system

Abstract

This paper presents a newly developed disruption recovery model for a single stage production and inventory system, where the production is disrupted for a given period of time during the production up time. The model is categorized as a constrained non-linear optimization program which we have solved using an efficient heuristic developed in this paper. The model was also solved using an evolutionary algorithm and a comparison of the results from both methods was performed. The heuristic was able to accurately solve the model with significantly less time compared to the evolutionary algorithm. It can be shown that the optimal recovery schedule is dependent on the shortage cost parameters, as well as the extent of the disruption. The proposed model offers a potentially useful tool to help manufacturers decide on the optimal recovery plan in real time whenever the production system experiences a sudden disruption.