Optimization of supply chain networks with inclusion of labor: Applications to COVID-19 pandemic disruptions

In this paper, we respond to the COVID-19 pandemic by constructing supply chain network optimization models, which explicitly include labor as an important variable in the network economic activity links, along with associated capacities. Labor is a critical resource in supply chains from production to transportation, storage, and distribution. In a pandemic, the availability of labor for different supply chain network activities may be disrupted due to illness, fear of contagion, morbidity, necessity of social/physical distancing, etc. The modeling framework considers first elastic demands for a product and then fixed demands, coupled with distinct types of labor capacities in order to capture the availability of this valuable resource in a pandemic, as well as possible flexibility. The supply chain network framework, which includes electronic commerce, is relevant to many different supply chain applications including protective personal and medical equipment, as well as to particular food items. Theoretical results as well as computed numerical examples are presented.

Automated summary

In response to the COVID-19 pandemic, this paper constructs supply chain network optimization models that include labor as an important variable, taking into account disruptions to labor availability and possible flexibility during the pandemic. The framework considers elastic and fixed demands for products, different types of labor capacities, and is relevant to various supply chain applications. Both theoretical results and numerical examples are presented.