GBOM-oriented management of production disruption risk and optimization of supply chain construction

Authors:
Tong Shu;Shou Chen;Shouyang Wang;Kin Keung Lai
Affiliations:
College of Business Administration, Hunan University, Changsha, Hunan 410082, China;College of Business Administration, Hunan University, Changsha, Hunan 410082, China;Academy of Mathematics and Systems Sciences, Chinese Academy of Sciences, Beijing 100080, China;Department of Management Sciences, City University of Hong Kong, Tat Chee Avenue Kowloon, Hong Kong, China
Venue:
Expert Systems with Applications: An International Journal
Year:
2014

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Abstract

A generic bill-of-materials (GBOM) describes demand for materials and their proportional relations to a family of products. Supply chain constructed from the perspective of the GBOM is able to respond swiftly to market demand and lean production can be achieved by managing the total cost of supply chain effectively. Based on the GBOM, this paper examines the control of production disruption risk related to supply chain and investigates the uncertainty of production in supply chain enterprises for the purpose of achieving optimal profits in supply chain. As the production disruption risk is controlled at a certain level, the selection model of supply chain partners, which is specific and more feasible, can be constructed. A combination of random simulation and neural network is deployed to approximate uncertain function, and genetic algorithm and simulated annealing arithmetic are also used to approximately achieve the optimal scheme of supply chain construction in the context of uncertainty.