Optimal reactive operation of general topology supply chain and manufacturing networks under disruptions

Abstract

Supply and manufacturing networks in the chemical industry involve diverse processing steps across different locations, rendering their operation vulnerable to disruptions from unplanned events. Optimal responses should consider factors such as product allocation, delayed shipments, and price renegotiation, among other factors. In such context, we propose a multiperiod mixed‐integer linear programming model that integrates production, scheduling, shipping, and order management to minimize the financial impact of such disruptions. The model accommodates arbitrary supply chain topologies and incorporates various disruption scenarios, offering adaptability to real‐world complexities. A case study from the chemical industry demonstrates the scalability of the model under finer time discretization and explores the influence of disruption types and order management costs on optimal schedules. This approach provides a tractable, adaptable framework for developing responsive operational plans in supply chain and manufacturing networks under uncertainty.