To address long-term SC disruptions under COVID-19 with dynamic customer demand, this chapter proposes a prediction-based recovery strategy integrated with product change. A data-driven demand forecasting method with feedback errors is designed to predict future demand. A bi-objective mixed-integer programming (MIP) model is established for optimal supply portfolio selection, followed by goods allocation and order fulfillment strategies. A three-stage heuristic algorithm is developed to solve the integrated problem. A case study on Dongsheng Electronics verifies the strategy’s effectiveness: it reduces unit product cost and improves service level compared to the original method. Sensitivity analysis of product change cost further reveals its impact on SC performance.

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A Prediction-Based Recovery Strategy Under Demand Dynamics

  • Chen Peng,
  • Hongfeng Wang,
  • Yi Yang,
  • Yong Zhang

摘要

To address long-term SC disruptions under COVID-19 with dynamic customer demand, this chapter proposes a prediction-based recovery strategy integrated with product change. A data-driven demand forecasting method with feedback errors is designed to predict future demand. A bi-objective mixed-integer programming (MIP) model is established for optimal supply portfolio selection, followed by goods allocation and order fulfillment strategies. A three-stage heuristic algorithm is developed to solve the integrated problem. A case study on Dongsheng Electronics verifies the strategy’s effectiveness: it reduces unit product cost and improves service level compared to the original method. Sensitivity analysis of product change cost further reveals its impact on SC performance.