Zero-inventory plans, constant workforce, or hybrid approach? Analysing pure production strategies for enhancing factory resilience with demand variability

Abstract

Historically the notion of resilience capability has primarily been conceptualised as a holistic construct in the domain of supply chain networks – referred to as SCRES. The field of SCRES has since evolved gaining prominence among scholars and practitioners. However, the existing SCRES literature inadequately delves into the embedded resilience harboured by their constituent components, practices, or internal routines, including the aggregate production planning (APP) process. Therefore, the purpose of this article is to examine the interplay between medium-term pure strategies for APP and the resilience of manufacturing facilities, assuming demand to be the sole source of uncertainty. To accomplish this, a realistic Monte-Carlo simulation model integrated with a robust heuristic procedure for pure strategies is merged with a factory resilience index-based Cobb–Douglas function. The results of this research suggest that manufacturing facilities achieve a higher level of resilience when certain ‘zero-inventory plans’ are implemented. Based on this key finding, production/demand planners might incorporate the resilience dimension alongside the customary manufacturing success factors. Thus, to the best of the authors’ knowledge, this study represents the first attempt to establish a clear linkage between the implementation of pure APP strategies and a quantitative measure of factory resilience.