Optimization of COVID-19-Free Supply Chains
Abstract
The basic aim of this paper is to research the importance of supply chain optimization in the circumstances of the COVID-19 crisis. The research object is the optimum selection of active participants before and after the COVID-19 crisis. The initial hypothesis of this paper is that optimal COVID-19-free supply chains can be formed with a dynamic programming method, the costs of which will be higher than those when this restriction would not exist, but significantly lower than those formed if the optimization principle in the selection of supply chain stakeholders would be neglected. Research results in this scientific discussion paper are based on the analysis and synthesis method, comparative method, and dynamic programming method. The main findings of this paper point to the conclusion that the COVID-19 crisis affected the reduction of goods flow within supply chains, reduction of potential participants in supply chains, reduction of supply chains business safety, and increase in business costs.
References
World Health Organization. Available from: https://covid19.who.int/ [Accessed 23rd May 2020].
The April Monthly Briefing of the World Economic Situation and Prospects. Available from: https://www.un.org/development/desa/dpad/publication/world-economic-situation-and-prospects-april-2020-briefing-no-136/ [Accessed 9th May 2020].
Maliszewska M, Mattoo A, van der Mensbrugghe D. The Potential Impact of COVID-19 on GDP and Trade: A Preliminary Assessment. World Bank, Washington, DC. Policy Research Working Paper No. 9211, 2020. Available from: https://openknowledge.worldbank.org/handle/10986/33605 [Accessed 25th May 2020].
Silvestre C, editor. The UniCredit Economics Chartbook. UniCredit Bank Milan; 2020. Available from: https://www.research.unicredit.eu/DocsKey/economics_docs_2020_176448.ashx?EXT=pdf&KEY=C814QI31EjqIm_1zIJDBJFQWHqiVh6iWv-rRmfm0wlw=&T=1 [Accessed 15th May 2020].
Thomas M. Croatia's economy expected to fall by 9.4 percent this year in COVID-19 driven recession. The Dubrovnik Times. 30 April 2020. Available from: https://www.thedubrovniktimes.com/news/croatia/item/8877-croatia-s-economy-expected-to-fall-by-9-4-percent-this-year-in-covid-19-driven-recession [Accessed 2nd May 2020].
Xinhua Net. Global economy could shrink by 1 pct in 2020 due to COVID-19 pandemic: UN. Available from: http://www.xinhuanet.com/english/2020-04/02/c_138939242.htm [Accessed 4th April 2020].
Deloitte. COVID-19: Managing supply chain risk and disruption Coronavirus highlights the need to transform traditional supply chain models. Available from: www.deloitte.ca [Accessed 4th May 2020].
Bellman R. The Theory of Dynamic Programming. Santa Monica, California: The Rand Corporation; 1954. Available from: http://smo.sogang.ac.kr/doc/bellman.pdf. [Accessed 5th February 2020].
Backović M, Vuleta J. Ekonomsko matematički metodi i modeli. Drugo izdanje. Beograd: Ekonomski fakultet u Beogradu; 2002. Serbian.
Dominguez R, Cannella S, Framinan MJ. The impact of the supply chain structure on bullwhip effect. Applied Mathematical Modelling. 2015;39(23-24): 7309-7325.
Wright D, Yuan X. Mitigating the bullwhip effect by ordering policies and forecasting methods. International Journal of Production Economics. 2008;113(2): 587-597.
Samuelson P, Nordhaus W. Economics. Nineteenth Edition. New York: McGraw Hill; 2010.
Matinrada N, Roghaniana E, Rasib Z. Supply chain network optimization: A review of classification, models, solution techniques and future research. Uncertain Supply Chain Management. 2013;1(1): 1-24.
Chopra S, Meindl P. Supply chain management: Strategy, planning and operation. 6th editon. Edinburgh: Pearson Education Limited; 2016.
Shukla SK, Tiwari MK, Wan H-D, Shankar R. Optimization of the supply chain network: Simulation, Taguchi, and Psychoclonal algorithm embedded approach. Computers & Industrial Engineering. 2010;58(1): 29-39.
Ding H, Benyoucef L, Xie X. Stochastic multi-objective production-distribution network design using simulation-based optimization. International Journal of Production Research. 2009;47(2): 479-505.
Copyright (c) 2021 Drago Pupavac, Robert Maršanić, Ljudevit Krpan
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
