| Literature DB >> 34692371 |
Abhijit Barman1, Rubi Das1, Pijus Kanti De1.
Abstract
An ongoing worldwide pandemic, known as Covid infection 2019 (COVID-19), influences the food supply chains significantly. In the pandemic situation, the movements of the people are restricted due to strict lock-down, and retail shops are closed. The supply of products to the customer is a challenging situation for the food supplier. These disruptions impact the food supply chain system suddenly, and the process can collapse without necessary and immediate actions. In this paper, a direct delivery channel has been used as a recovery strategy to minimize the effects of disruptions in the pandemic situation. In the recovery plan, the manufacturer appoints vendors and delivers the products directly to the customers by introducing multi-delivery channels. We optimize the recovery plan under the profit maximization criteria from the recovery window. Some numerical examples have been illustrated to justify that the developed recovery model can resist the reduction of demand and improve the profit of the system. Also, managerial insights are discussed which help the decision-makers to make an accurate and prompt decision of designing a recovery strategy during COVID-19.Entities:
Keywords: COVID-19; Inventory; Pandemic; Price-sensitive demand; Recovery model; Supply chain
Year: 2021 PMID: 34692371 PMCID: PMC8527448 DOI: 10.1007/s10669-021-09836-w
Source DB: PubMed Journal: Environ Syst Decis ISSN: 2194-5411
.
| Manufacturing cost per unit | |
| Holding cost per unit | |
| Production rate | |
| Sanitizing cost per product | |
| Ordering cost | |
| Selling price through retail channel | |
| Selling price through delivery channel 1 | |
| Selling price through delivery channel 2 | |
| Delivery cost for channel 1 | |
| Delivery cost for channel 2 | |
| Demand through retail channel | |
| Demand through delivery channel 1 | |
| Demand through delivery channel 2 | |
| Total profit |
Fig. 1Structure of before pandemic situation of supply chain
Fig. 2Structure of recovery supply chain
Fig. 3Concavity of profit function (TP) with respect to sales price p in before the pandemic situation
Fig. 4Concavity of profit function (TP) with respect to sales price p during the pandemic under no recovery plan
Fig. 5Concavity of profit function (TP) with respect to sales price p during the pandemic under recovery plan
Sensitivity analysis with respect to demand elasticity parameters
| Numerical 1 | Numerical 2 | Numerical 3 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (− 20%) | 400 | 5.28 | 48.47 | 3915.42 | 336 | 5.28 | 42.28 | 2359.35 | 160 | 240 | 2.4 | 2.88 | 45.16 | 53.40 | 3628.45 |
| (− 10%) | 450 | 5.94 | 48.55 | 4405.22 | 378 | 5.94 | 42.34 | 2659.34 | 180 | 270 | 2.7 | 3.24 | 45.22 | 53.46 | 4083.50 |
| (+ 0%) | 500 | 6.60 | 48.62 | 4892.41 | 420 | 6.60 | 42.40 | 2957.73 | 200 | 300 | 3.0 | 3.60 | 45.29 | 53.52 | 4536.16 |
| (+ 10%) | 550 | 7.26 | 48.69 | 5377.00 | 462 | 7.26 | 42.45 | 3254.53 | 220 | 330 | 3.3 | 3.96 | 45.36 | 53.58 | 4986.47 |
| (+ 20%) | 600 | 7.92 | 48.76 | 5858.95 | 504 | 7.92 | 42.51 | 2887.05 | 240 | 360 | 3.6 | 4.32 | 45.44 | 53.64 | 5434.43 |
Sensitivity analysis with respect to manufacturing cost (M)
| Numerical 1 | Numerical 2 | Numerical 3 | ||||||
|---|---|---|---|---|---|---|---|---|
| 16 | 46.67 | 5634.40 | 40.45 | 3544.01 | 43.35 | 51.58 | 5243.94 | |
| 18 | 47.65 | 5256.98 | 41.42 | 3244.35 | 44.32 | 52.55 | 4883.63 | |
| 20 | 48.62 | 4892.40 | 42.40 | 2957.73 | 45.29 | 53.52 | 4536.16 | |
| 22 | 49.60 | 4540.68 | 43.37 | 2683.86 | 46.27 | 54.50 | 4201.54 | |
| 24 | 50.57 | 4201.80 | 44.34 | 2422.84 | 47.24 | 55.47 | 3879.77 | |
Sensitivity analysis with respect to holding cost (h)
| Numerical 1 | Numerical 2 | Numerical 3 | ||||||
|---|---|---|---|---|---|---|---|---|
| 3 | 48.33 | 4946.43 | 42.17 | 2990.82 | 45.01 | 53.28 | 4585.22 | |
| 4 | 48.47 | 4919.27 | 42.28 | 2974.19 | 45.15 | 53.40 | 4560.56 | |
| 5 | 48.62 | 4892.40 | 42.40 | 2957.73 | 45.29 | 53.52 | 4536.16 | |
| 6 | 48.76 | 4865.82 | 42.51 | 2941.45 | 45.43 | 53.64 | 4512.02 | |
| 7 | 48.91 | 4839.53 | 42.62 | 2957.40 | 45.57 | 53.76 | 4488.14 | |
Fig. 6Changes of Total Profit with respect to cost parameters