Enhanced Variable Neighborhood Search-Based Recovery Supplier Selection for Post-Disruption Supply Networks

Abstract

With the increasing reliance on global sourcing and the growth in the likelihood of disruptive incidents, today’s supply networks are more prone to unexpected natural and man-made disruptive events. In order to alleviate the losses caused by these disruptive events, when a large-scale event disrupts multiple suppliers simultaneously, a single or several critical suppliers should be selected from the disrupted ones to assist them to recover their production as soon as possible. The selection of these recovery suppliers is of great importance in the recovery process of the entire supply network. Thus, this paper proposes a recovery supplier selection method from the view of the supply network structure. Firstly, a tripartite graph-based supply model is proposed to depict a two-stage supply network, which consists of multiple manufacturers and suppliers as well as the diverse product supply-demand interdependence connecting them. To measure the impacts caused by supplier disruptions and to evaluate the effectiveness of recovery supplier decisions, two supply network performance metrics reflecting product supply availability are also given. Then, the recovery supplier selection problem is described as a combinatorial optimization problem. To solve this problem, a heuristic algorithm, with enhanced variable neighborhood search (EVNS) is designed based on the general framework of a variable neighborhood search. Finally, experiments based on a real-world supply network are conducted. The experimental results indicate that the proposed method is applicable and effective.