A System Dynamics Model to Evaluate the Impact of Production Process Disruption on Order Shipping

Abstract

Multiple studies have analyzed the importance of preventive maintenance. Similarly, they have developed and/or evaluated various spare part inventory management policies that help companies reduce the duration of production disruptions resulting from sudden mechanical failures. All of these studies assess the impact of mechanical failures on local aspects, such as idle times or management policies. However, they do not holistically evaluate how machine failures affect key performance indicators. To address this gap, we proposed a System Dynamics (SD) model to systemically analyze the impact of machine part failures on order shipping, a key performance indicator. Similarly, we assessed the impact of machine part failures on the levels of the company’s finished goods inventory. The research was conducted in a glass bottle manufacturing company. To increase order shipping as a performance indicator, we identified the key variables of the production process and conducted a sensitivity analysis of the variables. Our results indicate that it is possible to reach the company’s 98–100% complete delivery policy.

Investigation of COVID-19 Impact on the Food and Beverages Industry: China and India Perspective

“…In view of COVID-19′s new social, environmental and economic landscapes, a variety of businesses are dealing with various problems of a barricaded world with a certain degree of losses [ 16 ]: in particular, production losses, deterioration of supply chains, cancelation of export orders, shortage of raw materials and obstruction of transport, among others [ 17 , 18 ]. Newly released data have found that 94% of Fortune 1000 firms are experiencing volatility related to COVID-19, whereas 75% have been adversely affected [ 19 ].…”

Mathematical Modeling for Infinite and Finite Dimensional Production-Inventory Systems Subject to Demand Fluctuation

“…In production-inventory systems some works analyzes supply disruption [10], with multi-echelon production-inventory system supply disruption [11]. In relation to production disruptions in [12] presents deteriorating items, while random disruptions are present in [13,14] and a system dynamics approach is developed for production process disruption in [15]. Supply chain dynamism builds the strategic orientation supply chain disruption orientation [16].…”

Strategies to Manage the Impacts of the COVID-19 Pandemic in the Supply Chain: Implications for Improving Economic and Social Sustainability

“…Foremost brands delayed and canceled orders due to COVID-19, and millions of workers are at the risk of job losses [33]. Sánchez-Ramírez et al [34] evaluated the impact of production process disruption in a glass factory. Unfilled orders [35], shipping delays [36], and stalled productions [37] are some common impacts on the global supply chain in the COVID-19 situation.…”