A resilience optimization approach for workforce-inventory control dynamics under uncertainty

The presence of uncertainties in manufacturing systems and supply chains can cause undesirable behavior. Failure to account for these in the design phase can further impair the capability of systems to respond to changes effectively. In this work, we consider a dynamic workforce-inventory control problem wherein inventory planning, production releases, and workforce hiring decisions need to be made. The objective is to develop planning rules to achieve important requirements related to dynamic transient behavior when system parameters are imprecisely known. To this end, we propose a resilience optimization model for the problem and develop a novel local search procedure that combines the strengths of recent developments in robust optimization technology and small signal stability analysis of dynamic systems. A numerical case study of the problem demonstrates significant improvements of the proposed solution in controlling fluctuations and high variability found in the system’s inventory, work-in-process, and workforce levels. Overall, the proposed model is shown to be computationally efficient and effective in hedging against model uncertainties.