A Supply Chain Disruption Problem with Node´s Failure and Recovery

Contemporary industry trends and business practices, such as global sourcing, decentralized production, reduced number of suppliers etc., make supply chains more susceptible to disruptions which have caused severe domino effects in the past few years. This paper addresses a supply chain disruption problem with recovery from disruptions. Two types of producers are assumed to exist inside and outside a supply chain, internal producers and external producers. We develop two models to investigate the emergency ordering strategy from external producer. To validate the effectiveness of the proposed models, a case study about instant noodle supply chain is conducted and related numerical experiment is also implemented. We analyze the experimental results and some implications are derived from this study, for example, external producer may transfer to internal producer under certain circumstances.