Analysis of production systems with potential for severe disruptions

Organizations often have to make production capacity decisions in a setting where production disruptions occur. This presents managers with a combination of strategic capacity decisions and operational inventory management options to manage disruptions. This paper uses Bayesian methods to analyze operational data where data on parameters required in logistics models are unavailable, then models production and inventory management in systems that have the potential for major disruptions.The produce-to-stock with production disruptions model is applicable to systems where the decision on production rate is coupled with the setting of the base stock level when production disruptions are possible. The model is applied to a proposed food processing facility at a correctional institution that is subject to disruptions due to safety and security issues.

Recommended citation: 'Systems with potential for severe disruptions.' (2016). International Journal of Production Economics, 171, pp. 478–486.
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