A Recovery Model for an EPQ System subject to Supply Disruption with Consideration of Safety Stock

Hawa Hishamuddin, F. M. Mohamad Sobri, F. A. Nur Ghafar, A. M. Noraida Darom

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Managers are continuously seeking a balance between an efficient system and cost minimization, and when disruptions occur, the decision making process becomes more complicated, hence requiring the aid of complex problem-solving mechanisms. This paper develops a recovery model of a single stage production-inventory system, where the manufacturer's original Economic Production Quantity is affected by supply disruption. The proposed model uses safety stock as a mitigation strategy and generates a recovery plan to minimize overall system costs. The developed constrained non-linear optimization model was solved using the Branch and Bound search algorithm. Experimental analysis showed that longer disruption periods resulted in a significant increase in total recovery cost and safety stock levels. Furthermore, a case study at an automotive components manufacturer showed that the optimal recovery plan yield lower total cost as compared to the actual data obtained, which resulted in significant savings in total cost. In conclusion, the proposed model could be a useful tool to assist manufacturers in minimizing the impact of disruption, while improving the efficiency of the supply chain.

Original languageEnglish
Title of host publication2019 IEEE 6th International Conference on Industrial Engineering and Applications, ICIEA 2019
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages240-245
Number of pages6
ISBN (Electronic)9781728108513
DOIs
Publication statusPublished - 14 May 2019
Event6th IEEE International Conference on Industrial Engineering and Applications, ICIEA 2019 - Tokyo, Japan
Duration: 12 Apr 201915 Apr 2019

Publication series

Name2019 IEEE 6th International Conference on Industrial Engineering and Applications, ICIEA 2019

Conference

Conference6th IEEE International Conference on Industrial Engineering and Applications, ICIEA 2019
CountryJapan
CityTokyo
Period12/4/1915/4/19

Fingerprint

Recovery
Costs
Supply chains
Managers
Decision making
Disruption
Supply disruption
Safety stock
Economics
Nonlinear optimization
Problem solving
Savings
Cost minimization
Production-inventory system
Decision-making process
Optimization model
Supply chain
Cost recovery
Experimental analysis
Mitigation

Keywords

  • disruption
  • inventory model
  • safety stock
  • supply chain

ASJC Scopus subject areas

  • Industrial and Manufacturing Engineering
  • Decision Sciences (miscellaneous)

Cite this

Hishamuddin, H., Mohamad Sobri, F. M., Nur Ghafar, F. A., & Noraida Darom, A. M. (2019). A Recovery Model for an EPQ System subject to Supply Disruption with Consideration of Safety Stock. In 2019 IEEE 6th International Conference on Industrial Engineering and Applications, ICIEA 2019 (pp. 240-245). [8715204] (2019 IEEE 6th International Conference on Industrial Engineering and Applications, ICIEA 2019). Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/IEA.2019.8715204

A Recovery Model for an EPQ System subject to Supply Disruption with Consideration of Safety Stock. / Hishamuddin, Hawa; Mohamad Sobri, F. M.; Nur Ghafar, F. A.; Noraida Darom, A. M.

2019 IEEE 6th International Conference on Industrial Engineering and Applications, ICIEA 2019. Institute of Electrical and Electronics Engineers Inc., 2019. p. 240-245 8715204 (2019 IEEE 6th International Conference on Industrial Engineering and Applications, ICIEA 2019).

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Hishamuddin, H, Mohamad Sobri, FM, Nur Ghafar, FA & Noraida Darom, AM 2019, A Recovery Model for an EPQ System subject to Supply Disruption with Consideration of Safety Stock. in 2019 IEEE 6th International Conference on Industrial Engineering and Applications, ICIEA 2019., 8715204, 2019 IEEE 6th International Conference on Industrial Engineering and Applications, ICIEA 2019, Institute of Electrical and Electronics Engineers Inc., pp. 240-245, 6th IEEE International Conference on Industrial Engineering and Applications, ICIEA 2019, Tokyo, Japan, 12/4/19. https://doi.org/10.1109/IEA.2019.8715204
Hishamuddin H, Mohamad Sobri FM, Nur Ghafar FA, Noraida Darom AM. A Recovery Model for an EPQ System subject to Supply Disruption with Consideration of Safety Stock. In 2019 IEEE 6th International Conference on Industrial Engineering and Applications, ICIEA 2019. Institute of Electrical and Electronics Engineers Inc. 2019. p. 240-245. 8715204. (2019 IEEE 6th International Conference on Industrial Engineering and Applications, ICIEA 2019). https://doi.org/10.1109/IEA.2019.8715204
Hishamuddin, Hawa ; Mohamad Sobri, F. M. ; Nur Ghafar, F. A. ; Noraida Darom, A. M. / A Recovery Model for an EPQ System subject to Supply Disruption with Consideration of Safety Stock. 2019 IEEE 6th International Conference on Industrial Engineering and Applications, ICIEA 2019. Institute of Electrical and Electronics Engineers Inc., 2019. pp. 240-245 (2019 IEEE 6th International Conference on Industrial Engineering and Applications, ICIEA 2019).
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