Production-sharing of critical resources with dynamic demand under pandemic situation: The COVID-19 pandemic

Behnam Vahdani · Mehrdad Mohammadi · Simon Thevenin · Patrick E. Meyer · Alexandre B. Dolgui

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Supply Chain and Inventory Management Sustainable Supply Chain Management Facility Location and Emergency Management

Abstract

The COVID-19 virus's high transmissibility has resulted in the virus's rapid spread throughout the world, which has brought several repercussions, ranging from a lack of sanitary and medical products to the collapse of medical systems. Hence, governments attempt to re-plan the production of medical products and reallocate limited health resources to combat the pandemic. This paper addresses a multi-period production-inventory-sharing problem (PISP) to overcome such a circumstance, considering two consumable and reusable products. We introduce a new formulation to decide on production, inventory, delivery, and sharing quantities. The sharing will depend on net supply balance, allowable demand overload, unmet demand, and the reuse cycle of reusable products. Undeniably, the dynamic demand for products during pandemic situations must be reflected effectively in addressing the multi-period PISP. A bespoke compartmental susceptible-exposed-infectious-hospitalized-recovered-susceptible (SEIHRS) epidemiological model with a control policy is proposed, which also accounts for the influence of people's behavioral response as a result of the knowledge of adequate precautions. An accelerated Benders decomposition-based algorithm with tailored valid inequalities is offered to solve the model. Finally, we consider a realistic case study - the COVID-19 pandemic in France - to examine the computational proficiency of the decomposition method. The computational results reveal that the proposed decomposition method coupled with effective valid inequalities can solve large-sized test problems in a reasonable computational time and 9.88 times faster than the commercial Gurobi solver. Moreover, the sharing mechanism reduces the total cost of the system and the unmet demand on the average up to 32.98% and 20.96%, respectively.

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References

2020Viability of intertwined supply networks: extending the supply chain resilience angles towards survivability. A position paper motivated by COVID-19 outbreak 2004A stochastic programming approach for supply chain network design under uncertainty 2020Impacts of epidemic outbreaks on supply chains: mapping a research agenda amid the COVID-19 pandemic through a structured literature review 2020What does the COVID-19 pandemic teach us about global value chains? The case of medical supplies 2020Influence of Social Media Platforms on Public Health Protection Against the COVID-19 Pandemic via the Mediating Effects of Public Health Awareness and Behavioral Changes: Integrated Model 2023Toward supply chain viability theory: from lessons learned through COVID-19 pandemic to viable ecosystems 2022Adapting supply chain operations in anticipation of and during the COVID-19 pandemic 2020A model of supply‐chain decisions for resource sharing with an application to ventilator allocation to combat COVID ‐19

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