Purpose: A recent global pandemic, known as coronavirus disease 2019 (COVID-19), affects the manufacturing supply chains most significantly. This effect becomes more challenging for the manufacturers of high-demand and most essential items, such as toilet paper and hand sanitizer. In a pandemic situation, the demand of the essential products increases expressively; on the other hand, the supply of the raw materials decreases considerably with a constraint of production capacity. These dual disruptions impact the production process suddenly, and the process can collapse without immediate and necessary actions. To minimize the impacts of these dual disruptions, we aim to develop a recovery model for making a decision on the revised production plan.Design/methodology/approach: In this paper, the authors use a mathematical modeling approach to develop a production recovery model for a high-demand and essential item during the COVID-19. The authors also analyze the properties of the recovery plan, and optimize the recovery plan to maximize the profit in the recovery window.Findings: The authors analyze the results using a numerical example. The result shows that the developed recovery model is capable of revising the production plan in the situations of both demand and supply disruptions, and improves the profit for the manufacturers. The authors also discuss the managerial implications, including the roles of digital technologies in the recovery process.Originality/value: This model, which is a novel contribution to the literature, will help decision-makers of high-demand and essential items to make an accurate and prompt decision in designing the revised production plan to recover during a pandemic, like COVID-19.
4 August 2020 in Business Strategy and the Environment
Due to the recent pandemic of coronavirus, known as the COVID-19 outbreak, the supply chains have been impacted most significantly. Manufacturers of certain items have experienced a substantial increase in demand, and on the other hand, raw materials supply, to produce those items, has reduced because of supply failure. To overcome these challenges, this paper proposes some strategies to improve service level during an extraordinary pandemic outbreak, such as COVID-19, for the most wanted products such as toilet paper. This study considers meeting the increased demand of the customers for an essential product of daily life like toilet paper during a pandemic is beyond the traditional economic objective, i.e., increase profit, of the manufacturers. Instead, this should be more about the social responsibility of all the manufactures to ensure that they can serve more customers. Motivated by this and taking toilet paper as an example of the product, we first analyzed the current scenario of the manufacturing and the demand for the product and then proposed some strategies to deal with this unprecedented risk and analyzed the results. We have compared the results, using hypothetical data, between the current scenario and proposed strategies. The result shows that sharing information and resources from all manufacturers to produce under a single brand, emergency sourcing, producing basic quality items, and packing in the smallest sizes have a significant positive impact on the service level. This paper first investigates the strategies for a high-demand and essential item during a pandemic situation and proposes strategies to deal with this unique, extraordinary disruption.