A Bi-objective Disruption Recovery Plan with Integrated Production and Distribution Decisions

We integrate production and distribution decisions in a recovery planning model for a disrupted production system to minimize the negative impacts of disruption on its profit and customers' satisfaction. The problem is originally motivated by the real-life case of an explosion disaster occurred in September 2015 in a leading producer of household consumer goods in Iran. Multiple recovery policies as using the reserve line, production outsourcing and inventory transshipment are adopted to the firm's multi-product three echelon network of production resources, depots and classified customers. Considering a practical setting for customers' approach to the shortage, production contractors' quantity discounts and the availability limitations on the dispatching area caused by the disruption makes the model more adoptable to the real life problems. Epistemic inherent uncertainty of demands and recovery progress are addressed with triangular fuzzy numbers. The model's two objective functions are aggregated with a weighted sum formulation and helpful insights are derived from numerical experiments.