Production Planning and Emergency Inventory for Demand Surge in Health Supply Chains for Pandemics like COVID-19
DOI:
https://doi.org/10.37266/ISER.2021v9i1.pp32-46Keywords:
Pandemic, Production Planning, Demand SurgeAbstract
This research considers modeling production and inventory quantities in the presence of demand surge due to pandemics like COVID-19. The aim of this research is to help health care organizations better prepare and respond to a demand surge due to a pandemic. A large-scale pandemic such as COVID-19 can cause an overwhelming demand for urgent medical supplies on very short notice. Well-established supply chain planning and modeling are necessary to avoid any national level or company health supply chain problems resulting from demand shortages. This paper addresses the issues from a supply chain perspective. The need to be prepared for any surge in demand is addressed in terms of emergency inventories, including those of Work-in-Process and finished goods. Linear Programming models are developed to minimize the costs of production, inventories, and transportation of goods from one stage to the next stage. Several scenarios are tested out for various levels of demand, cost, and capacities.References
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Federal Reserve Bank of Cleveland (FRBC) and the US Census Bureau Small Business Pulse (SBP) Survey.
Grubbström, R. W., & Wang, Z. (2003). A stochastic model of multi-level/multi-stage capacity-constrained production–inventory systems. International Journal of Production Economics, 81, 483-494.
Ivanov, D. (2020). Viable supply chain model: integrating agility, resilience and sustainability perspectives—lessons from and thinking beyond the COVID-19 pandemic, Annals of Operations Research, May 2020.
Johnson, A., Johnson, M.E., & Nagarur, N. (2021). Supply Chain Design under Disruptions Considering Risk Mitigation Strategies for Robustness and Resiliency. International Journal of Logistics Systems and Management, 38(1), 1-29.
Katsaliaki, K., Galetsi, P., & Kumar, S. (2021). Supply chain disruptions and resilience: a major review and future research agenda. Annals of Operations Research, 1-38.
Lodree Jr, E. J., & Taskin, S. (2008). An insurance risk management framework for disaster relief and supply chain disruption inventory planning. Journal of the Operational Research Society, 59(5), 674-684.
Osterholm, M. T. (2005). Preparing for the next pandemic. New England Journal of Medicine, 352(18), 1839-1842.
Sheffi, Y. (2005). The resilient enterprise: overcoming vulnerability for competitive advantage. MIT Press Books.
Sheffi, Y. (2020). Solving the Health-Care Equipment Supply Shortage. Retrieved from: https://www.wsj.com/articles/commentary-solving-the-health-care-equipment- supply-shortage-11586512801?mod=searchresults (accessed on 1 April 20201).
Worldometer. (2021). Retrieved March 30, 2021 from https://www.worldometers.info/coronavirus/#countries
Zhu, G., Chou, M. C., & Tsai, C. W. (2020). Lessons learned from the COVID-19 pandemic exposing the shortcomings of current supply chain operations: a long-term prescriptive offering. Sustainability, 12(14), 5858.
Published
2021-04-09
How to Cite
Khaswaneh, A., & Nagarur, N. (2021). Production Planning and Emergency Inventory for Demand Surge in Health Supply Chains for Pandemics like COVID-19. Industrial and Systems Engineering Review, 9(1), 32-46. https://doi.org/10.37266/ISER.2021v9i1.pp32-46
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