Optimal strategies for members in a two-echelon supply chain over a safe period under random machine hazards with backlogging

ABSTRACT

This study contributes to analyzing the effect of disruption in the manufacturing process in a two-echelon supply chain involving a manufacturer and a retailer. Prior studies failed to cover the aftermath of disruption in the manufacturing process in a multi-layer supply chain. Here the manufacturing system may face random disruption after a fixed period named safe period. Due to the lengthy maintenance period of the disrupted system, shortages may hamper the smooth business for both the members of the chain. The result reveals that the manufacturer-dominated scenario favours the manufacturer, while the retailer gains in the Centralized system. Also, it is obtained that the costs of the member and chain decrease with a higher value of the safe period, and they increase when the range of the maintenance period increases. This study proposes an iterative method, depending on functional values, as a solution methodology.

Graphical abstract

KEYWORDS:

• Supply chain
• production inventory
• machine breakdown
• corrective maintenance
• safe period
• golden section search method

Disclosure statement

No potential conflict of interest was reported by the author(s).