Abstract

To ensure the uninterrupted operation of physical assets, the effective implementation of risk mitigation plans (RMPs) and business continuity plans (BCPs) for critical assets is required. However, manufacturing decision-makers face the challenge of allocating limited resources between RMPs and BCPs while prioritizing sustained success. To address this challenge, a novel approach proposes integrating a metaheuristic algorithm into a risk management framework that considers interconnected risks. The framework utilizes a Bayesian Network (BN) to model interdependencies among critical physical asset risks. It determines the optimal combination of BCPs and RMPs, considering continuity measures and resource limitations. A physical asset risk assessment process evaluates operational and disruption risks based on expected loss and probabilities within the risk network. Given the complexity, the proposed framework incorporates hybrid multi-objective metaheuristic algorithms (e.g., Nondominated Sorting Genetic Algorithm II (NSGA-II), Strength Pareto Evolutionary Algorithm 2 (SPEA2), Multi-Objective Particle Swarm Optimization (MOPSO), and Pareto Envelope-based Selection Algorithm II (PESA-II)) combined with a reinforcement learning approach. A case study of a manufacturing company demonstrates the framework’s applicability and discusses the results. The findings show a significant reduction in the expected loss within the risk network and migration of most physical asset risks from high-risk to acceptable areas. Additionally, a sensitivity analysis examines the available budget, aiding decision-makers in determining the necessary compromise between asset availability and network risk level. In conclusion, the proposed framework empowers decision-makers to allocate resources effectively, prioritize RMPs and BCPs, and ensure continuity for critical physical assets, thereby fostering sustained success in manufacturing systems.

Full Text
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