Disruption management for complicated operation systems: A model study on CTC in 2006

The disruption management of China Telecom Corporation (CTC) in 2006 is firstly reinvestigated. Interestingly, similar practices are found in other complicated operation systems, such as communication system, refinery and semiconductor fab when their critical capacities are injured by earthquake, fire, intentional attack et al. In this paper, a mathematical model is presented to describe the actions after disruption: injured capacity could be restored in a multiple period and shortage capacity could be acquired (or supported) from capacity-sharing partners in regular and expedite support modes. And the risk attitude of decision maker is considered as another important factor in this model. The model is proved to be convex in a loss function which means a minimum loss could be promised. Finally, a genetic algorithm is used to sensitive analysis towards some key parameters, and 3 interesting managerial insights are obtained.