Risk Management in Production Planning: A Systematic Literature Review

In recent years, unforeseen and rare events in the environment of manufacturing companies have been a dominating influence in production planning. Examples are dynamic product demand developments due to the COVID-19 pandemic and geopolitical conflicts or changes in production resource availabilities due to technological disruptions and shortages. In addressing these unforeseen events, large changes in the production systems can cause errors or disruptions raising the need for the inclusion of risk management in production planning. In order to insure applicability for unforeseen and rare events, risk management approaches in production planning require realistic and objective risk assessments. This paper conducts a literature review for risk management in production planning with the aim of assessing the state of the art in regards to realistic and objective risk assessment and concludes with the recommendation for further consideration of rare and unexpected events in future methodologies.