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Bonfring International Journal of Industrial Engineering and Management Science, Vol. 5, No.

2, June 2015

39

Development of Rescheduling Framework to


Overcome the Different Source of the Disruptions
in the make to Order Supply Chain with the
Reverse Flow of after-sales Service
Konteti V.N.V.N. Rao and Ginka Ranga Janardhana
Abstract--- Supply chain management is a stratagem,
which produces the product with right quality, appropriate
quantity, in right time and it deliver the exact order quantity to
the right person. However, the uncertainty in the real time
manufacturing system is unavoidable. Handling of the post
disruption and selecting the suitable rescheduling strategies to
overcome the disruption are challengeable task. The current
paper deals the framework development to manage disruption
from the various entities in the house hold goods
manufacturing system. Machine breaks down, supply delay,
entry of returned goods, rush orders, supply failure, order
postponement, order preponement, order cancellation and the
entry of the rework are considered as disruption. The
objective of the frame work is to meet the delivery schedule
under disruption. Key performance indicator for each
disruption and monitoring them from each entities are
discussed. This systematic frame work escorts to conduct case
study by incorporating popular rescheduling strategies.
Keywords--- Disruption, Framework, Supply Chain,
Rescheduling

I.

INTRODUCTION

N todays competitive business environment demands a


well coordinated supply chain activities for fulfilling the
customer request. Technology development and globalization
are considered as important factors in the modern business.
However, there is a challenge exists to get the customer and
keep them with the business network. Supplier and customer
are the business entities, which are away from the company
wall. These entities are treated as the source of uncertainty and
disruption. Therefore, the supply chain should be more
sensitive and react when the uncertainties arises. It is designed
to meet the business objectives under the disruption and
uncertainties. After-sales service is a strategic tool to promote
the customer, to buy the goods. A well configured after-sales

Konteti V.N.V.N. Rao, Associate Professor, Mechanical Engineering


Department, PBRVITS, Kavali, SPSR Nellore District, Andhra Pradesh,
India. E-mail:kavalikvnrao1978@gmail.com
Ginka Ranga Janardhana, Director(IST), Professor, Mechanical
Engineering Department, JNTUK, Kakinada, E.G.District, Andhra Pradesh,
India. E-mail:ranga.janardhana@gmail.com

service network in the supply chain helps to retain customer


and offer competitive advantage to the business(Gaiardelli,
Saccani and Songini, 2007; Kurata and Nam, 2010) . The
performance measure of the supply chain is more important to
assess the manufacturing system to meet the business goal
(Rao, Rao and Munaswamy,2008). Gunasekaran , Patel and
McGaughey, (2004) developed a framework to measure the
performance of the supply chain. This framework provides
performance activities (plan, source, make and deliver) for
strategic, tactical, operational levels of management. Supply
chain council, (2011) introduced a supply chain operational
reference model for measuring performance of the supply
chain. The activities are classified into plan, source, make,
deliver, return and enable. The council also provided the
performance measures including perfect order fulfill, order
fulfillment cycle time, flexibility, adaptability, value-at-risk
and total cost to serve. Ganonkar and Viswanadham (2004)
categorized the events, which reduce the effecicnecy of the
supply chain into deviation, disruption and disaster. Deviation
is an event which causes instability on the manufacturing
system. An event, which compels the manufacturing system to
reschedule partially or completely, is called disruption.
Disaster is referred to an event which induces partial or
complete shutdown in the manufacturing system. Real time
manufacturing system is always connected with un expected
events, uncertainty and disruption. Among these events, the
uncertainty due to disruption is widely reported in the
literatures (Rahmani and Heydari,2004; Petrovic and Duenas
2006; Qi, and and Yu,2006). Behdani et al (2012) classified
the disruption in to pre disruption and post disruption. Pre
disruption can be predicted before affecting the manufacturing
system where as post disruption cannot be predicted but it will
be handled by triggering suitable disruption management
activities. Adhitya, Srinivasan and Karimi,(2009) discussed
activities of post disruption management system. Monitoring
the key performance indicator, identification of the route
cause, selection of suitable rectification activity, rescheduling
and coordination are considered as impartment activities of the
post disruption management system. Rescheduling is a
strategy to manage the disruption from sourcing,
manufacturing and delivering the products (Vieira, Herrmann
and Lin, 2003). Rao and Janardhana (2014) conducted a
comprehensive literature review on the effect of rescheduling
on operating performance of the supply chain under

DOI: 10.9756/BIJIEMS.10418

ISSN 2277-5056 | 2015 Bonfring

Bonfring International Journal of Industrial Engineering and Management Science, Vol. 5, No. 2, June 2015

disruption. Mahamani, Rao and Pandurangadu (2006)


developed a framework map the supply chain activities for the
volume driven manufacturing system. Rescheduling activities
in the manufacturing supply chain is reported in the literature
review and presented in the section 2. The current paper deals
the framework development for disruption management
system in house hold goods manufacturing supply chain with
reverse flow of after-sales service system. Structure of the
paper includes the literature review of the rescheduling
activity in supply chain, description of case study, frame work
development to handle the different disruption, and summary.
II.

LITERATURE REVIEW

Adhitya, Srinivasan and Karimi (2007) proposed a


heuristic based rescheduling to recover the disruption from the
refinery supply chain. They presented a couple of case studies
with single source of disruption. Result of the investigation
shows that, the proposed heuristics performed better against
the disruption. Ali and Nakade (2014) presented a stochastic
programming approach to mitigate the disruption in multi
product-multi agent supply chain. They considered several
disruption scenarios in this study. They evaluated total cost to
optimize the supply chain network. Bansal et al.(2005)
developed an on line decision support system for managing
disruption in refinery supply chain. They presented a case
study under multiple source disruption scenarios. Results of
this study points out that, the proposed approach is efficient in
handling the multiple disruption. Amaro and Barbosa (2008)
demonstrated a continuous time mathematical formulation to
absorb the disruption in the pharmaceutical supply chain. The
entities of the supply chain are supply, production and
distribution. Transportation task, storage and the state of the
material are considered as disruption. Mixed integer liner
programming and branch and bound procedure are used to
optimize the supply chain. Heinecke et al (2012) studied the
effect of disruption on the manufacturing supply chain
performance. Transport delay is treated as a disruption and,
weighted sum and cost function approaches are used to
measure the disruption. Numerical investigation discloses that,
the proposed approaches are captured the impact of the
transport delay effectively. Wasusri and Tanratpatkul (2005)
investigated effect of the rescheduling on the apparel supply
chain. The challenge of the apparel supply chain is shorter life
cycle, hence shorter lead time to be maintained across the
supply chain. Desecrate event simulation is applied for
evaluating the performance. Analysis of the result indicates
that, the low frequency rescheduling with high schedule
stability yield better performance. Adhitya, Srinivasan and
Karimi (2007) developed a model based rescheduling frame
work to overcome the disruption in the refinery supply chain.
Function of the disruption management system includes
operation graph and rectification graph. Operation graph is
identifying the consequence of disruption where as the
rectification graph captures the possible option to avoid the
disruption. It is found from the investigation, the proposed
approach overcome the short coming from the heuristics. The
literature survey discloses that, the manufacturing system with
entry of returned goods for after-sales service is not received
the attention from the researchers. An attempt has been made

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to develop a frame work to handle disruption by the


rescheduling strategies and the products are delivered within
promised date under different disruption scenario.
III.

DESCRIPTION OF SUPPLY CHAIN

House hold goods manufacturing firm is considered for


this investigation. It is a make to order manufacturing system
configured with after-sales service network. Goods are
manufactured in two parallel machines with the functioning of
eight hour per day basis. Three different varieties of the
products are produced. Each product has different
manufacturing cycle time. Setup time to change one product in
to another product is one hour. Each product has 4 suppliers
with different lead times. Average production capacity per day
per machine is 650 units. Capacity of warehouse is 24,000
units. This manufacturing system faces the disruption from
supplier, customer and manufacturing. Rescheduling interval
for the manufacturing is 3 weeks. The manufacturing system
faces at least three disruptions per rescheduling interval.
Machine break down, supplier delay, entry of returned goods
for after-sales service and rush order from the customer are the
disruptions which are occurring frequently and affect the
delivery performance. Order cancellation, order pre phone,
order post phone, supply failure and job rework are rarely
occurring in the manufacturing system. Supplier,
manufacturer, retailer and customer are the entities of the
manufacturing system. The objective of this paper is to
develop framework to manage the order to delivery time under
the disruption from the various entities. It is seen from the
disruption category, customer and supplier are the major
source of the disruption. Unfortunately these entities are
beyond the wall of the industry. For solving this problem, a
supply chain network is created to focus the order to delivery
time under disruption. These disruptions are difficult predict in
advance and not easy to control them before affecting the
manufacturing system. This supply chain system requires
mach attention on the operation level management than
strategic and tactical level. Therefore, rescheduling strategy is
a right choice to achieve goal under the disruption from the
sourcing, manufacturing and delivering. Adhitya, Srinivasan
and Karimi (2007) developed a systematic approach to handle
the post disruption with appropriate rescheduling strategy. The
activity of the approach includes monitoring key performance
indicator, root cause for the disruption, identifying
rectification strategies, selection of the optimal strategies and
rescheduling. A similar attempt has been made to develop a
frame work to handle the house hold good manufacturing
system with after sales service. The structure of the proposed
supply chain is shown in Figure 1. Ozlen and Azizoglu (2009)
attempted to reschedule the already assigned job in the parallel
machine system. Branch and bound algorithm is used to
evaluate the performance of the scheduling. They incorporated
powerful reduction and bounding mechanisms to improve the
efficiency. Azizoglu and Alagoz (2005) aimed to solve the
rescheduling issue in identical parallel machine system under
machine in availability. Total flow time and schedule stability
are evaluated by using polynomial time algorithm. They
observed the considerable improvement in the schedule
performance under disruption. Arnaout and Rabadi attempted

ISSN 2277-5056 | 2015 Bonfring

Bonfring International Journal of Industrial Engineering and Management Science, Vol. 5, No. 2, June 2015

to reschedule the previously scheduled jobs in unrelated


parallel machine environment. Different rate of machine break
down and delay are considered as a disruption. Schedule
deviation and makespan are evacuated as performance
measures. Computational analysis discloses that, the proposed
rescheduling more efficient than other rescheduling methods
reported in the literatures.
Disruption from the Entities in the Supply Chain
Disruption from the Manufacturing System
Machine break down is an important disruption occurring
in the manufacturing system. This will be monitored with a
key performance indicator is called average production
capacity per hour. Root cause analysis for this disruption
suggests to strengthen the preventive maintenance system.
First step of the frame work propose the rescheduling is
necessary or not. Appropriate rescheduling strategy is
identified with the minimal order to delivery time. There is a
sub system, which recommends the over time schedule, if the
goods are not produced before the due date. The disruption
due to the machine break down is illustrated in the Figure 2.
Disruption due to the Supplier Delay
Delay in arrival of the raw material is considered as a
disruption from the supplier entity, which cause significant
uncertainty to deliver the product in time. Key performance
indicator for this disruption is order to delivery time of the raw
materials. If it goes beyond limit of the time, the system gets
alert and estimate the delay time by collaborating with the
supplier. Rectification system checks the inventory status with
reference to the delay time. If it is a longer time, the initial
schedule will continued until zero stock. Over the period of
time the corresponding product is removed and proposed a
reschedule with the other two products. After inspection and
packaging the products are sent to the customer through the
retailers. Disruption management system to deal the supply
delay is exposed in the Figure 3
Disruption due to the Returned Goods through After-sales
Service Network
The proposed supply chain is configured with an aftersales service network for processing the returned goods from
the customer. Key performance indicator of this disruption is
monitored by the retailer, who is closely related to the
customer. Root cause for this disruption is the spare parts
complaint and alignment problem. Frame work suggests the
retailer, to collect returned goods which are in the warranty
period. The returned goods need to be processed within the
shorter duration. A well directed system gives priority to these
goods for manufacturing, strict quality check and meets the
delivery schedule. Disruption handling for the entry of the
returned goods is presented in the Figure 4.
Disruption due to the Rush Orders
Rush order is a unpredictable disruption with shorter
delivery time. Urgent order maximizes the revenue, if it is
handled successfully. It will cause delay to all other orders, if
it is not managed carefully. Order entry rate is a key
performance indicator, which is monitored by the retailer. The

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rescheduling activity is proposed to meet the due date. The


frame work recommends the strict quality check to avoid the
rework. Activities to absorb the disruption due to rush order
are shown in Figure 5.
Disruption due to the Supply Failure of the Raw Materials
This kind of disruption is occurs, if the raw material of a
particular product is stock out or unexpected transport strike.
An element of the frame work monitors the key performance
indicator (order to delivery time) of the each raw material. If
raw material is not received within the time, the flow up link
interacts with the supplier and estimate approximate delay
time. Stock available with inventory is used for regular
production. If the inventory is reached the zero stock, the
corresponding product is removed from the schedule.
Rescheduling is made based on the delay time. Series of
activities to be carried out to conquer the disruption is
disclosed in the Figure 6.
Disruption due to the Order Postponement
It is a disruption, motivated by the customer entity. The
key performance indicator for this disruption is the extension
of order to delivery time. The major consequence of this
disruption is the instability in production schedule. This
disruption can be rectified by postponing the particular order.
Right shift rescheduling is a right choice to overcome the
disruption and meet the due date. The frame work to overcome
the distruption due to order postponement is shown in Figure
7.
Disruption due to the Order Preponement
Order propone is an uncertainty from the customer entity.
Reduction in order to delivery time is the indication of the
disruption. Arrival of rush order from the customers
customer, cause order preponement and leads to the schedule
change. Reschedule is prepared by giving priority to the
preponed orders in order to meet revised due date. Left shift
rescheduling is a suitable rectification strategy to meet the
delivery schedule. If the prephone jobs are unable to meet to
the due date, the frame work suggest to go for the over time
schedule. Activities and decision making for handling the
order preponement disruption is shown in Figure 8.
Disruption due to the Order Canceling
Order cancel is a kind of the uncertainty, which is occurred
rarely. The information about the order cancel is received at
the retailer entry. Reduction in the number of ongoing order is
the indication of this uncertainty. Disaster in the
manufacturing system and reduction in sales at customer
entity can induce this kind of disruption. Reduction in ongoing
order reduces the stability of the production schedule and the
machine utilization. Rescheduling is made by removing the
canceled order from the existing schedule. Left shift
rescheduling is an appropriate strategy to meet delivery
schedule. The activities involved to manage the order
cancellation are illustrated in the frame work, which is shown
in Figure 9.

ISSN 2277-5056 | 2015 Bonfring

Bonfring International Journal of Industrial Engineering and Management Science, Vol. 5, No. 2, June 2015

Disruption due to the Entry of the Rework


Rework on the previously finished job, increases the
manufacturing cycle time. Number rejection is a key
performance indicator for this disruption. Deviation from the
Specification of order and specification of the manufactured
product, leads to rejection in inspection. This uncertainty can
be overcome by strengthening the information system within
the firm. Re-entry of the rejected jobs increases the order to
delivery time. The proposed rescheduling strategy should meet
the delivery schedule of the existing jobs and re-entred jobs.
The frame work to deal the rework disruption is presented in
the Figure.10.
IV.

[8]

[9]

[10]

[11]

[12]

[13]

SUMMARY

The current paper deals the development of disruption


management system to handle the uncertainty from the supply,
manufacturing and customer. Key performance indicator for
each disruption and monitoring them from each entities are
discussed. Strengthening the weak links for the each
disruption explained. Most Frequent disruptions faced by the
household goods manufacturing company are reported in the
present work. This systematic frame work gives a lead to
conduct case study by incorporating popular rescheduling
strategies.

[14]

[15]

[16]

[17]

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Bonfring International Journal of Industrial Engineering and Management Science, Vol. 5, No. 2, June 2015

Figure 3: Disruption due to Supplier Delay

Figure 1: Household Goods Manufacturing Supply Chain

Figure 2: Disruption Management Systems for Machine


Breakdown

Figure 4: Disruption due to Returned Goods through after


Sales Service Network

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Bonfring International Journal of Industrial Engineering and Management Science, Vol. 5, No. 2, June 2015

Figure 5: Disruption due to the Rush Order


Figure 7: Disruption due to Order Postpone

Figure 6: Disruption due to Supply Failure of Raw Materials

Figure 8: Disruption due to Order Pre Pone

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Konteti V.N.V.N. Rao completed his M.Tech in


Visvesvaraya Technological University and pursuing
PhD in Jawaharlal Nehru Technological University,
Kakinada under supervision of Dr.G. Ranga
Janardhana. He has around 12 years experience in
teaching. He teaches Operations Research, Production
and Operations Management, Production Technology,
Metrology, Machine Tools and Engineering Graphics.
He has more than 10 papers in conference proceedings and Journals. He
attended many conferences, seminars and training courses in the prestigious
universities. He guided 15 UG projects and 6 PG projects. He is the life
member of Indian Society for Technical Education.
G. Ranga Janardhana Currently working as a
Director (Institute of Science & Technology) and
Professor in Mechanical Engineering department in
Jawaharlal Nehru Technological University, Kakinada,
India. He completed his PhD in Jawaharlal Nehru
Technological University, Hyderabad and also
completed his Post Doctoral Program in Hoseo
University, Republic of Korea (South Korea).
He has more than 25 years of experience in teaching. He teaches Intelligent
Manufacturing Systems, Automation in Manufacturing, Mechatronics and
Micro Electro Mechanical Systems (MEMS). He has more than 100 papers in
conference proceedings and Journals in his credit. He completed many funded
projects from AICTE,UGC and DST. He organized countless seminars,
conferences and refresher courses. He has guided more than 15 PhD scholars
from various universities. He is the life member of ISTE,IIF and IIPE.

Figure 9: Disruption due to Order Cancelling

Figure 10: Disruption Due to the Entry of Rework

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