Track: Supply Chain Management

Abstract

The Covid-19 pandemic has impacted economies worldwide, particularly the supply chains (SCs) of various industries. This research was aimed at investigating the impact of the Covid-19 pandemic on the manufacturing SC in Malaysia. The study employed an optimisation model to simulate the effects of various movement control orders (MCOs) on the SC. Through an analysis using the SC disruption simulation model, it became evident that an optimal recovery plan depends largely on both the recovery duration and manufacturing capacity. The longer the recovery duration, the longer the optimal recovery plan that is needed if the manufacturing capacity is not considerable. Moreover, the number of backorders and sales lost will increase as well if the disruption cannot be recovered within a short period of time. Based on the simulation results, some suggestions have been proposed to mitigate the impact of an adverse disruption and strengthen the SC. These include having emergency stock to prevent stock-outs and utilising inventory strategies to overcome the issue of raw material shortages. In addition, manufacturers can reduce the total cost of recovery by adjusting the optimal manufacturing capacity to ensure customer demand can be met with minimal losses.