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Wong WP, Saw PS, Jomthanachai S, Wang LS, Ong HF, Lim CP. Digitalization enhancement in the pharmaceutical supply network using a supply chain risk management approach. Sci Rep 2023; 13:22287. [PMID: 38097696 PMCID: PMC10721629 DOI: 10.1038/s41598-023-49606-z] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Grants] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Received: 08/29/2023] [Accepted: 12/10/2023] [Indexed: 12/17/2023] Open
Abstract
One major issue in pharmaceutical supply chain management is the supply shortage, and determining the root causes of medicine shortages necessitates an in-depth investigation. The concept of risk management is proposed in this study to identify significant risk factors in the pharmaceutical supply chain. Fuzzy failure mode and effect analysis and data envelopment analysis were used to evaluate the risks of the pharmaceutical supply chain. Based on a case study on the Malaysian pharmaceutical supply chain, it reveals that the pharmacy node is the riskiest link. The unavailability of medicine due to unexpected demand, as well as the scarcity of specialty or substitute drugs, pose the most significant risk factors. These risks could be mitigated by digital technology. We propose an appropriate digital technology platform consisting of big data analytics and blockchain technologies to undertake these challenges of supply shortage. By addressing risk factors through the implementation of a digitalized supply chain, organizations can fortify their supply networks, fostering resilience and efficiency, and thereby playing a pivotal role in advancing the Pharma 4.0 era.
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Affiliation(s)
- Wai Peng Wong
- School of Information Technology, Monash University Malaysia, 47500, Selangor, Malaysia.
| | - Pui San Saw
- School of Pharmacy, Monash University Malaysia, 47500, Selangor, Malaysia
| | - Suriyan Jomthanachai
- Faculty of Management Sciences, Prince of Songkla University, Songkhla, 90110, Thailand
| | - Leong Seng Wang
- School of Pharmacy, Monash University Malaysia, 47500, Selangor, Malaysia
| | - Huey Fang Ong
- School of Information Technology, Monash University Malaysia, 47500, Selangor, Malaysia
| | - Chee Peng Lim
- Institute for Intelligent Systems Research and Innovation, Deakin University, Geelong, Australia
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2
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Vahdani B, Mohammadi M, Thevenin S, Meyer P, Dolgui A. Production-sharing of critical resources with dynamic demand under pandemic situation: The COVID-19 pandemic. OMEGA 2023; 120:102909. [PMID: 37309376 PMCID: PMC10239663 DOI: 10.1016/j.omega.2023.102909] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Figures] [Subscribe] [Scholar Register] [Received: 09/28/2022] [Accepted: 05/26/2023] [Indexed: 06/14/2023]
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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Affiliation(s)
- Behnam Vahdani
- IMT Atlantique, Lab-STICC, UMR CNRS 6285, Brest F-29238, France
| | - Mehrdad Mohammadi
- IMT Atlantique, Lab-STICC, UMR CNRS 6285, Brest F-29238, France
- Department of Industrial Engineering and Innovation Sciences, Eindhoven University of Technology, Eindhoven 5600MB, the Netherlands
| | - Simon Thevenin
- IMT Atlantique, LS2N-CNRS, La Chantrerie, 4, rue Alfred Kastler, Nantes cedex 3, F-44307, France
| | - Patrick Meyer
- IMT Atlantique, Lab-STICC, UMR CNRS 6285, Brest F-29238, France
| | - Alexandre Dolgui
- IMT Atlantique, LS2N-CNRS, La Chantrerie, 4, rue Alfred Kastler, Nantes cedex 3, F-44307, France
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3
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Hancock ME, Mora J. The Impact of COVID-19 on Chinese trade and production: An empirical analysis of processing trade with Japan and the US. JOURNAL OF ASIAN ECONOMICS 2023; 86:101596. [PMID: 36974120 PMCID: PMC10023200 DOI: 10.1016/j.asieco.2023.101596] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Figures] [Subscribe] [Scholar Register] [Received: 04/20/2022] [Revised: 12/23/2022] [Accepted: 03/02/2023] [Indexed: 06/18/2023]
Abstract
The COVID-19 pandemic severely disrupted international trade, leading countries to grapple with product shortages and firms to experience major supply chain issues. These challenges increased production costs and significantly contributed to lower trade and higher inflation. In this paper, we examine the impact of COVID-19 on Chinese trade through its two main trading partners: Japan and the US. By differentiating products by product type and processing status, we find evidence that products in the middle of the global supply chain were most affected by the pandemic and that the severity of the shock depends on the partner country's role in the global supply chain. Additionally, we find that Chinese exports are more impacted than Chinese imports, regardless of processing status. These findings are largely consistent with economic theory. Understanding that the effects of global shocks vary by product and country will help guide policies that minimize supply chain disruptions.
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Affiliation(s)
| | - Jesse Mora
- Occidental College, United States of America
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4
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Petratos PN, Faccia A. Fake news, misinformation, disinformation and supply chain risks and disruptions: risk management and resilience using blockchain. ANNALS OF OPERATIONS RESEARCH 2023; 327:1-28. [PMID: 37361081 PMCID: PMC9994786 DOI: 10.1007/s10479-023-05242-4] [Citation(s) in RCA: 1] [Impact Index Per Article: 0.5] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Figures] [Subscribe] [Scholar Register] [Accepted: 02/16/2023] [Indexed: 06/28/2023]
Abstract
Fake news, misinformation and disinformation have significantly increased over the past years, and they have a profound effect on societies and supply chains. This paper examines the relationship of information risks with supply chain disruptions and proposes blockchain applications and strategies to mitigate and manage them. We critically review the literature of SCRM and SCRES and find that information flows and risks are relatively attracting less attention. We contribute by suggesting that information integrates other flows, processes and operations, and it is an overarching theme that is essential in every part of the supply chain. Based on related studies we create a theoretical framework that incorporates fake news, misinformation and disinformation. To our knowledge, this is a first attempt to combine types of misleading information and SCRM/SCRES. We find that fake news, misinformation and disinformation can be amplified and cause larger supply chain disruptions, especially when they are exogenous and intentional. Finally, we present both theoretical and practical applications of blockchain technology to supply chain and find support that blockchain can actually advance risk management and resilience of supply chains. Cooperation and information sharing are effective strategies.
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5
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Li P, Wang W, Tao Y, Tan X, Li Y, Mao Y, Gao L, Feng L, Zhan S, Sun F. Immunogenicity and reactogenicity of heterologous immunization schedules with COVID-19 vaccines: a systematic review and network meta-analysis. Chin Med J (Engl) 2023; 136:24-33. [PMID: 36723872 PMCID: PMC10106236 DOI: 10.1097/cm9.0000000000002567] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Download PDF] [Figures] [Journal Information] [Subscribe] [Scholar Register] [Received: 06/27/2022] [Indexed: 02/02/2023] Open
Abstract
BACKGROUND Data on the immunogenicity and safety of heterologous immunization schedules are inconsistent. This study aimed to evaluate the immunogenicity and safety of homologous and heterologous immunization schedules. METHODS Multiple databases with relevant studies were searched with an end date of October 31, 2021, and a website including a series of Coronavirus disease 2019 studies was examined for studies before March 31, 2022. Randomized controlled trials (RCTs) that compared different heterologous and homologous regimens among adults that reported immunogenicity and safety outcomes were reviewed. Primary outcomes included neutralizing antibodies against the original strain and serious adverse events (SAEs). A network meta-analysis (NMA) was conducted using a random-effects model. RESULTS In all, 11 RCTs were included in the systematic review, and nine were ultimately included in the NMA. Among participants who received two doses of CoronaVac, another dose of mRNA or a non-replicating viral vector vaccine resulted in a significantly higher level of neutralizing antibody than a third CoronaVac 600 sino unit (SU); a dose of BNT162b2 induced the highest geometric mean ratio (GMR) of 15.24, 95% confidence interval [CI]: 9.53-24.39. Following one dose of BNT162b2 vaccination, a dose of mRNA-1273 generated a significantly higher level of neutralizing antibody than BNT162b2 alone (GMR = 1.32; 95% CI: 1.06-1.64), NVX-CoV2373 (GMR = 1.60; 95% CI: 1.16-2.21), or ChAdOx1 (GMR = 1.80; 95% CI: 1.25-2.59). Following one dose of ChAdOx1, a dose of mRNA-1273 was also more effective for improving antibody levels than ChAdOx1 (GMR = 11.09; 95% CI: 8.36-14.71) or NVX-CoV2373 (GMR = 2.87; 95% CI: 1.08-3.91). No significant difference in the risk for SAEs was found in any comparisons. CONCLUSIONS Relative to vaccination with two doses of CoronaVac, a dose of BNT162b2 as a booster substantially enhances immunogenicity reactions and has a relatively acceptable risk for SAEs relative to other vaccines. For primary vaccination, schedules including mRNA vaccines induce a greater immune response. However, the comparatively higher risk for local and systemic adverse events introduced by mRNA vaccines should be noted. REGISTRATION PROSPERO; https://www.crd.york.ac.uk/PROSPERO/ ; No. CRD42021278149.
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Affiliation(s)
- Pei Li
- Department of Epidemiology and Biostatistics, School of Public Health, Peking University, Beijing 100191, China
| | - Weiwei Wang
- Department of Epidemiology and Biostatistics, School of Public Health, Peking University, Beijing 100191, China
- National Clinical Research Center for Mental Disorders & Beijing Key Laboratory of Mental Disorders, Beijing Anding Hospital, Capital Medical University, Beijing 100088, China
| | - Yiming Tao
- Department of Epidemiology and Biostatistics, School of Public Health, Peking University, Beijing 100191, China
| | - Xiaoyu Tan
- Department of Epidemiology and Biostatistics, School of Public Health, Peking University, Beijing 100191, China
| | - Yujing Li
- Peking University Aerospace School of Clinical Medicine, Beijing 100049, China
| | - Yinjun Mao
- Department of Pharmacy, First Affiliated Hospital of Fujian Medical University, Fuzhou, Fujian 350005, China
| | - Le Gao
- Department of Pharmacology and Pharmacy, Centre for Safe Medication Practice and Research, Li Ka Shing Faculty of Medicine, The University of Hong Kong, Hong Kong, China
| | - Lei Feng
- National Clinical Research Center for Mental Disorders & Beijing Key Laboratory of Mental Disorders, Beijing Anding Hospital, Capital Medical University, Beijing 100088, China
| | - Siyan Zhan
- Department of Epidemiology and Biostatistics, School of Public Health, Peking University, Beijing 100191, China
| | - Feng Sun
- Department of Epidemiology and Biostatistics, School of Public Health, Peking University, Beijing 100191, China
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6
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Shaker Ardakani E, Gilani Larimi N, Oveysi Nejad M, Madani Hosseini M, Zargoush M. A resilient, robust transformation of healthcare systems to cope with COVID-19 through alternative resources. OMEGA 2023; 114:102750. [PMID: 36090537 PMCID: PMC9444250 DOI: 10.1016/j.omega.2022.102750] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Figures] [Subscribe] [Scholar Register] [Received: 09/01/2021] [Accepted: 09/03/2022] [Indexed: 06/15/2023]
Abstract
The COVID-19 pandemic - as a massive disruption - has significantly increased the need for medical services putting an unprecedented strain on health systems. This study presents a robust location-allocation model under uncertainty to increase the resiliency of health systems by applying alternative resources, such as backup and field hospitals and student nurses. A multi-objective optimization model is developed to minimize the system's costs and maximize the satisfaction rate among medical staff and COVID-19 patients. A robust approach is provided to face the data uncertainty, and a new mathematical model is extended to linearize a nonlinear constraint. The ICU beds, ward beds, ventilators, and nurses are considered the four main capacity limitations of hospitals for admitting different types of COVID-19 patients. The sensitivity analysis is performed on a real-world case study to investigate the applicability of the proposed model. The results demonstrate the contribution of student nurses and backup and field hospitals in treating COVID-19 patients and provide more flexible decisions with lower risks in the system by managing the fluctuations in both the number of patients and available nurses. The results showed that a reduction in the number of available nurses incurs higher costs for the system and lower satisfaction among patients and nurses. Moreover, the backup and field hospitals and the medical staff elevated the system's resiliency. By allocating backup hospitals to COVID-19 patients, only 37% of severe patients were lost, and this rate fell to less than 5% after establishing field hospitals. Moreover, medical students and field hospitals curbed the costs and increased the satisfaction rate of nurses by 75%. Finally, the system was protected from failure by increasing the conservatism level. With a 2% growth in the price of robustness, the system saved 13%.
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Affiliation(s)
| | - Niloofar Gilani Larimi
- Gustavson School of Business, University of Victoria, Victoria, British Columbia, Canada
| | - Maryam Oveysi Nejad
- School of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran
| | - Mahsa Madani Hosseini
- Ted Rogers School of Management, Toronto Metropolitan University, Toronto, Ontario, Canada
| | - Manaf Zargoush
- Health Policy and Management, DeGroote School of Business, McMaster University, Hamilton, Ontario, Canada
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7
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Sayarshad HR. Personal protective equipment market coordination using subsidy. SUSTAINABLE CITIES AND SOCIETY 2022; 85:104044. [PMID: 35821737 PMCID: PMC9263706 DOI: 10.1016/j.scs.2022.104044] [Citation(s) in RCA: 1] [Impact Index Per Article: 0.3] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Subscribe] [Scholar Register] [Received: 04/14/2022] [Revised: 06/06/2022] [Accepted: 07/04/2022] [Indexed: 05/02/2023]
Abstract
During a pandemic, various resources, including personal protective equipment (PPE), are required to protect people and healthcare workers from getting infected. Due to the high demand and limited supply chain, countries experience a shortage in PPE products. This global crisis imposes a decline in the international trade of PPE supplies. In fact, most governments implement a localization strategy motivating domestic manufacturers to pivot their operations to respond to PPE demands. An oligopolistic market cannot reach the socially optimal coverage without government subsidies. On the other hand, the government subsidy pays the proportion of production costs to reach the socially optimal coverage, while the government's budget is limited. Therefore, the government collaborates with manufacturers via procurement contracts to increase the supply of PPE products. We propose the first supply chain model of PPE products that investigates manufacturer costs and government expenditure. We consider how different behavioral aspects of manufacturers and government can self-organize towards a system optimum. Additionally, we integrate the consumer surplus, producer surplus, and societal surplus into the game model to maximize social benefit. A cost-sharing contract under the system optimum between government and manufacturers is designed to increase the production of PPEs and hence, helps in reducing the number of infected individuals. We conducted our computational study on real data generated from the mask usage during the Covid-19 pandemic in Los Angeles (LA) County to respond to the reported PPE shortage. Under the socially optimal strategy, the PPE coverage increases by up to 33%, and the number of infected individuals reduces by up to 30% compared to other strategies.
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Affiliation(s)
- Hamid R Sayarshad
- School of Civil and Environmental Engineering, Cornell University, Ithaca, NY 14853, USA
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8
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Sayarshad HR. An optimal control policy in fighting COVID-19 and infectious diseases. Appl Soft Comput 2022; 126:109289. [PMID: 35846948 PMCID: PMC9270838 DOI: 10.1016/j.asoc.2022.109289] [Citation(s) in RCA: 1] [Impact Index Per Article: 0.3] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Download PDF] [Figures] [Journal Information] [Subscribe] [Scholar Register] [Received: 01/31/2022] [Revised: 05/12/2022] [Accepted: 07/04/2022] [Indexed: 11/17/2022]
Abstract
When an outbreak starts spreading, policymakers have to make decisions that affect the health of their citizens and the economy. Some might induce harsh measures, such as a lockdown. Following a long, harsh lockdown, the recession forces policymakers to rethink reopening. To provide an effective strategy, here we propose a control strategy model. Our model assesses the trade-off between social performance and limited medical resources by determining individuals' propensities. The proposed strategy also helps decision-makers to find optimal lockdown and exit strategies for each region. Moreover, the financial loss is minimized. We use the public sentiment information during the pandemic to determine the percentage of individuals with high-risk behavior and the percentage of individuals with low-risk behavior. Hence, we propose an online platform using fear-sentiment information to estimate the personal protective equipment (PPE) burn rate overtime for the entire population. In addition, a study of a COVID-19 dataset for Los Angeles County is performed to validate our model and its results. The total social cost reduces by 18% compared with a control strategy where susceptible individuals are assumed to be homogeneous. We also reduce the total social costs by 26% and 22% compared to other strategies that consider the health-care cost or the social performance cost, respectively.
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Affiliation(s)
- Hamid R Sayarshad
- School of Civil Engineering, Cornell University, Ithaca, NY 14853, USA
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9
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Liu H, Han Y, Zhu A. Modeling supply chain viability and adaptation against underload cascading failure during the COVID-19 pandemic. NONLINEAR DYNAMICS 2022; 110:2931-2947. [PMID: 36035015 PMCID: PMC9392865 DOI: 10.1007/s11071-022-07741-8] [Citation(s) in RCA: 2] [Impact Index Per Article: 0.7] [Reference Citation Analysis] [Abstract] [Key Words] [Grants] [Track Full Text] [Figures] [Subscribe] [Scholar Register] [Received: 08/27/2021] [Accepted: 02/06/2022] [Indexed: 06/15/2023]
Abstract
Supply chain viability concerns the entire supply system rather than one company or one single chain to survive COVID-19 disruptions. Mobility restriction and overall demand decline lead to systematically cascading disruptions that are more severe and longer lasting than those caused by natural disasters and political conflicts. In the present study, the authors find that large companies and manufacturers with traditional advantages suffer greater losses than small ones, which is conceptualized as the "Hub Paradox" by empirically investigating one Warp Knitting Industrial Zone of China. An underload cascading failure model is employed to simulate supply chain viability under disruptions. Numerical simulations demonstrate that when the load decreases beyond a threshold, the viability will drop down critically. Besides, supply chain viability depends on two aspects: the adaptive capability of the manufacturers themselves and the adaptive capability of the connections of the supply network. The comparison study demonstrates that enhancing cooperative relations between hub and non-hub manufacturers will facilitate the entire supply network viability. The present study sheds light on viable supply chain management. Compared with conventionally linear or resilient supply chains, intertwined supply networks can leverage viability with higher adaptation of redistributing production capacities among manufacturers to re-establish overall scale advantages. Finally, the present study also suggests solving the "Hub Paradox" from the perspective of complex adaptive system. Supplementary Information The online version contains supplementary material available at 10.1007/s11071-022-07741-8.
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Affiliation(s)
- Hong Liu
- School of Computer and Information Engineering, Zhejiang Gongshang University, Hangzhou, 310018 People’s Republic of China
- School of Management and E-Business, Zhejiang Gongshang University, Hangzhou, 310018 People’s Republic of China
| | - Yunyan Han
- School of Management and E-Business, Zhejiang Gongshang University, Hangzhou, 310018 People’s Republic of China
- Contemporary Business and Trade Research Center of Zhejiang Gongshang University, Hangzhou, 310018 China
| | - Anding Zhu
- School of Management and E-Business, Zhejiang Gongshang University, Hangzhou, 310018 People’s Republic of China
- Contemporary Business and Trade Research Center of Zhejiang Gongshang University, Hangzhou, 310018 China
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10
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Rozhkov M, Ivanov D, Blackhurst J, Nair A. Adapting supply chain operations in anticipation of and during the COVID-19 pandemic. OMEGA 2022; 110:102635. [PMID: 35291412 PMCID: PMC8898197 DOI: 10.1016/j.omega.2022.102635] [Citation(s) in RCA: 9] [Impact Index Per Article: 3.0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Subscribe] [Scholar Register] [Received: 08/26/2021] [Accepted: 03/01/2022] [Indexed: 05/18/2023]
Abstract
This article investigates the impacts of the COVID-19 pandemic and their proactive mediation by adaptive operational decisions in different network design structures in anticipation of and during the pandemic. In generalized terms, we contribute to the understanding of the effect of preparedness and recovery decisions in a pandemic setting on supply chain operations and performance. In particular, we examine the impact of inventory pre-positioning in anticipation of a pandemic and the adaptation of production-ordering policy during the pandemic. Our model combines three levels, which is not often seen jointly in operations management literature, i.e., pandemic dynamics, supply chain design, and operational production-inventory control policies. The analysis is performed for both two- and three-stage supply chains and different scenarios for pandemic dynamics (i.e., uncontrolled propagation or controlled dispersal with lockdowns). Our findings suggest that two-stage supply chains exhibit a higher vulnerability in disruption cases. However, they are exposed to a lower system inertia and show positive effects at the recovery stage. Supply chain adaptation ahead of a pandemic is more advantageous than during the pandemic when specific operational recovery policies are deployed. We show that it is instructive to avoid simultaneous changes in structural network design and operational policies since that can destabilize the production-inventory system and result in higher product shortages.
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Affiliation(s)
- Maxim Rozhkov
- Department of Operations Management and Logistics, HSE University, Moscow, Russia
| | - Dmitry Ivanov
- Department of Business and Economics, Berlin School of Economics and Law, Supply Chain and Operations Management Group, Berlin 10825, Germany
| | | | - Anand Nair
- Department of Supply Chain Management, Michigan State University, East Lansing, MI 48824, USA
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11
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Ash C, Diallo C, Venkatadri U, VanBerkel P. Distributionally robust optimization of a Canadian healthcare supply chain to enhance resilience during the COVID-19 pandemic. COMPUTERS & INDUSTRIAL ENGINEERING 2022; 168:108051. [PMID: 35250153 PMCID: PMC8883745 DOI: 10.1016/j.cie.2022.108051] [Citation(s) in RCA: 1] [Impact Index Per Article: 0.3] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Subscribe] [Scholar Register] [Received: 03/02/2021] [Revised: 02/11/2022] [Accepted: 02/24/2022] [Indexed: 05/16/2023]
Abstract
This paper presents a multi-period multi-objective distributionally robust optimization framework for enhancing the resilience of personal protective equipment (PPE) supply chains against disruptions caused by pandemics. The research is motivated by and addresses the supply chain challenges encountered by a Canadian provincial healthcare provider during the COVID-19 pandemic. Supply, price, and demand of PPE are the uncertain parameters. The ∊ -constraint method is implemented to generate efficient solutions along the trade-off between cost minimization and service level maximization. Decision makers can easily adjust model conservatism through the ambiguity set size parameter. Experiments investigate the effects of model conservatism on optimal procurement decisions such as the portion of the supply base dedicated to long-term fixed contracts. Other types of PPE sources considered by the model are one-time open-market purchases and federal emergency PPE stockpiles. The study recommends that during pandemics health care providers use distributionally robust optimization with the ambiguity set size falling in one of three intervals based on decision makers' relative preferences for average cost performance, worst-case cost performance, or cost variance. The study also highlights the importance of surveillance and early warning systems to allow supply chain decision makers to trigger contingency plans such as locking contracts, reinforcing logistical capacities and drawing from emergency stockpiles. These emergency stockpiles are shown to play efficient hedging functions in allowing healthcare supply chain decision makers to compensate variations in deliveries from contract and open-market suppliers.
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Affiliation(s)
- Cecil Ash
- Dalhousie University, Department of Industrial Engineering, 5269 Morris Street, Halifax, NS B3H 4R2, Canada
| | - Claver Diallo
- Dalhousie University, Department of Industrial Engineering, 5269 Morris Street, Halifax, NS B3H 4R2, Canada
| | - Uday Venkatadri
- Dalhousie University, Department of Industrial Engineering, 5269 Morris Street, Halifax, NS B3H 4R2, Canada
| | - Peter VanBerkel
- Dalhousie University, Department of Industrial Engineering, 5269 Morris Street, Halifax, NS B3H 4R2, Canada
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12
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The Impact of the COVID-19 Pandemic on the Global Value Chain of the Manufacturing Industry. SUSTAINABILITY 2021. [DOI: 10.3390/su132212370] [Citation(s) in RCA: 2] [Impact Index Per Article: 0.5] [Reference Citation Analysis] [Abstract] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 11/17/2022]
Abstract
This paper adopts the GDYN model to estimate the dynamic impact of the COVID-19 pandemic on global manufacturing industry and the value chain. Our simulation finds that (1) In the short run, the low-tech manufacturing industries will suffer greater shocks, with a decline of output growth in 2021 by 6.0%. The growth rate of the high-tech manufacturing industry showed an increasing trend of 3.7% in 2021. (2) In the post-epidemic period, the total manufacturing output will return to the baseline level, from which the growth rate of low-tech manufacturing will rebound, demonstrating a V-shaped development trajectory. (3) From the perspective of Global Value Chain (GVC), the participation in GVCs of manufacturers in countries along the Belt and Road, the European Union and the United States will weaken, while China’s manufacturing industry has witnessed an obvious improvement in export competitiveness. The import added value of China has decreased, which shows that its ability to meet domestic demand has been improving. This indicates that the COVID-19 pandemic is providing a crucial opportunity for China to upgrade its manufacturing value chain, which contributes to the accelerated construction of a new dual-cycle development pattern.
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