A recovery model for an economic production quantity problem with disruption

Supply chains face risks from various unexpected events that make disruptions almost inevitable. This paper presents a disruption recovery model for a single stage production and inventory system, where the production is disrupted for a given period of time during the production up time. The developed model is a constrained nonlinear optimization program which we have solved using an evolutionary algorithm as well as the LINGO optimization package. It is shown that the optimal recovery schedule is dependent on the extent of the disruption, as well as the cost parameters. The proposed model is seen to be a very useful tool for manufacturers to make quick decisions on the optimal recovery plan after the occurrence of a disruption.