RT Journal Article
T1 Optimising the preparedness capacity of enterprise resilience using mathematical programming
A1 Sanchis, Raquel
A1 Durán Heras, Alfonso
A1 Poler, Raul
AB In today's volatile business arena, companies need to be resilient to deal with the unexpected. One of the main pillars of enterprise resilience is the capacity to anticipate, prevent and prepare in advance for disruptions. From this perspective, the paper proposes a mixed-integer linear programming (MILP) model for optimising preparedness capacity. Based on the proposed reference framework for enterprise resilience enhancement, the MILP optimises the activation of preventive actions to reduce proneness to disruption. To do so, the objective function minimizes the sum of the annual expected cost of disruptive events after implementing preventive actions and the annual cost of such actions. Moreover, the algorithm includes a constraint capping the investment in preventive actions and an attenuation formula to deal with the joint savings produced by the activation of two or more preventive actions on the same disruptive event. The management and business rationale for proposing the MILP approach is to keep it as simple and comprehensible as possible so that it does not require highly mathematically skilled personnel, thus allowing top managers at enterprises of any size to apply it effortlessly. Finally, a real pilot case study was performed to validate the mathematical formulation.
PB MDPI
SN 2227-7390
YR 2020
FD 2020-09
LK https://hdl.handle.net/10016/37972
UL https://hdl.handle.net/10016/37972
LA eng
NO This article belongs to the Special Issue Mathematical Methods and Analysis for the Industrial Management and Business.
NO This work was supported by the Spanish State Research Agency (Agencia Estatal de Investigación) under the Reference No. RTI2018-101344-B-I00-AR.
DS e-Archivo
RD 27 jul. 2024