Building up Resilience in a Pharmaceutical Supply Chain through Inventory, Dual Sourcing and Agility Capacity

This paper is inspired by a risk management problem faced by a leading pharmaceutical company. Key operational risk mitigation measures include Risk Mitigation Inventory (RMI), Dual Sourcing and Agility Capacity. We study the relationship between these three measures by modeling the drug manufacturing firm that is exposed to supply chain disruption risk. The firm determines optimal RMI levels for assumed Dual Sourcing and Agility Capacity. We quantify the decrease in RMI levels in the presence of Dual Sourcing and Agility Capacity. Furthermore, using an example, we analyze RMI, Dual Sourcing and Agility Capacity decisions jointly. It turns out that RMI and Agility Capacity can be substitutes as long as no Dual Source is available. Once the Dual Source is available, Agility Capacity and Dual Sourcing appear to be substitutes. We further show that for long disruption times, the optimal Dual Source production rate may decrease in the disruption time. Within our modeling framework, we introduce an operational metric that quantifies Supply Chain Resilience. Supply chain disruptions can have a severe business impact and need to be managed appropriately

Theoretical Framework Development for Supply Chain Risk Management for Malaysian Manufacturing

Globalization, rapid technological changes and growing competition not only facilitate but also make the supply chain more complex and fragile. Any disruption can disturb many organizations and even whole system. There are many theories and frameworks that present solution but no study is available that theoretically development framework for supply chain risk management. Due to the lack of structured supply chain risk management system the focus of this study is to develop a novel framework for identifying the potential risks and assessment of their effects on supply chain performance. Additionally, evaluate the role of supply chain collaboration in risk mitigation and performance improvement in Malaysian manufacturing sector. This study has highlighted numerous problems of Malaysian organizations and developed a theoretical framework. This framework will guide Malaysian organizations and will present better understanding for managers in resolving these issues. This is a conceptual paper, systematic as well as content analysis have been done for literature review. For future study, there is need to empirically verification of this theoretical framework. The proposed methodology to achieve this framework is; questionnaire will be developed from a pool and will be validate by exploratory view for risk identification. This questionnaire will be distributed among Malaysian manufacturing and data will be analyzed through Structural Equation Modeling (SEM) for risk assessment and mitigation. The theoretical contribution of this study is support of theory of swift, even flow as underpinning theory and information processing theory as supportive theory

Supply Chain Disruption Management: Review of Issues and Research Directions

Supply Chain Risk Management (SCRM) is an increasingly popular subject of research which emphasizes the goals of achieving improved supply chain robustness through development of design and operational strategies. Disruption management is one aspect of SCRM which examines the ability of the supply chain to maintain a high level of performance under the effects of major disruptions. Specifically, disruptions refer to events characterized by a low likelihood of occurrence and a large impact. Because of their limited rate of occurrence, disruptions are associated with a high uncertainty with respect to their expected impact. Improved modeling of the disruption impact is one key issue in this field. Other issues include the design of methods for supply chain performance measurement, disruption monitoring and detection, evaluation of recovery strategies, and methods of optimal supply chain design. Design features to be considered include flexibility, redundancy, and operating efficiency. The relevant literature is presented in the context of these major issues and future directions suggested by researchers in the field are discussed

A Conceptual Framework to Manage Resilience and Increase Sustainability in the Supply Chain

[EN] The challenges of global economies foster supply chains to have to increase their processes of collaboration and dependence between their nodes, generating an increase in the level of vulnerability to possible impacts and interruptions in their operations that may affect their sustainability. This has developed an emerging area of interest in supply chain management, considering resilience management as a strategic capability of companies, and causing an increase in this area of research. Additionally, supply chains should deal with the three dimensions of sustainability (economic, environmental, and social dimensions) by incorporating the three types of objectives in their strategy. Thus, there is a need to integrate both resilience and sustainability in supply chain management to increase competitiveness. In this paper, a systematic literature review is undertaken to analyze resilience management and its connection to increase supply chain sustainability. In the review, 232 articles published from 2000 to February 2020 in peer-reviewed journals in the Scopus and ScienceDirect databases are analyzed, classified, and synthesized. With the results, this paper develops a conceptual framework that integrates the fundamental elements for analyzing, measuring, and managing resilience to increase sustainability in the supply chain. Finally, conclusions, limitations, and future research lines are exposed.This study was supported by the Valencian Government in Spain (Project AEST/2019/019).Zavala-Alcívar, A.; Verdecho Sáez, MJ.; Alfaro Saiz, JJ. (2020). A Conceptual Framework to Manage Resilience and Increase Sustainability in the Supply Chain. Sustainability. 12(16):1-38. https://doi.org/10.3390/su12166300S1381216Roberta Pereira, C., Christopher, M., & Lago Da Silva, A. (2014). Achieving supply chain resilience: the role of procurement. Supply Chain Management: An International Journal, 19(5/6), 626-642. doi:10.1108/scm-09-2013-0346Pettit, T. 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Measuring the Resilience of Supply Chain Systems Using a Survival Model. IEEE Systems Journal, 9(2), 377-381. doi:10.1109/jsyst.2014.2339552LOH, H. S., & THAI, V. V. (2015). Cost Consequences of a Port-Related Supply Chain Disruption. The Asian Journal of Shipping and Logistics, 31(3), 319-340. doi:10.1016/j.ajsl.2015.09.001Torabi, S. A., Baghersad, M., & Mansouri, S. A. (2015). Resilient supplier selection and order allocation under operational and disruption risks. Transportation Research Part E: Logistics and Transportation Review, 79, 22-48. doi:10.1016/j.tre.2015.03.005Cardoso, S. R., Paula Barbosa-Póvoa, A., Relvas, S., & Novais, A. Q. (2015). Resilience metrics in the assessment of complex supply-chains performance operating under demand uncertainty. Omega, 56, 53-73. doi:10.1016/j.omega.2015.03.008Salehi Sadghiani, N., Torabi, S. A., & Sahebjamnia, N. (2015). Retail supply chain network design under operational and disruption risks. 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Assessing Supply Chain Risks in the Automotive Industry through a Modified MCDM-Based FMECA

[EN] Supply chains are complex networks that receive assiduous attention in the literature. Like any complex network, a supply chain is subject to a wide variety of risks that can result in significant economic losses and negative impacts in terms of image and prestige for companies. In circumstances of aggressive competition among companies, effective management of supply chain risks (SCRs) is crucial, and is currently a very active field of research. Failure Mode, Effects and Criticality Analysis (FMECA) has been recently extended to SCR identification and prioritization, aiming at reducing potential losses caused by lack of risk control. This article has a twofold objective. First, SCR assessment is investigated, and a comprehensive list of specific risks related to the automotive industry is compiled to extend the set of most commonly considered risks. Second, an alternative way of calculating the Risk Priority Number (RPN) is proposed within the FMECA framework by means of an integrated Multi-Criteria Decision-Making (MCDM) approach. We give a new calculation procedure by making use of the Analytic Hierarchy Process (AHP) to derive factors weights, and then the fuzzy Decision-Making Trial and Evaluation Laboratory (DEMATEL) to evaluate the new factor of "dependence" among the risks. The developed joint analysis constitutes a risk analysis support tool for criticality in systems engineering. The approach also deals with uncertainty and vagueness associated with input data through the use of fuzzy numbers. The results obtained from a relevant case study in the automotive industry showcase the effectiveness of this approach, which brings important value to those companies: When planning interventions of prevention/mitigation, primary importance should be given to (1) supply chain disruptions due to natural disasters; (2) manufacturing facilities, human resources, policies and breakdown processes; and (3) inefficient transport.Mzougui, I.; Carpitella, S.; Certa, A.; El Felsoufi, Z.; Izquierdo Sebastián, J. (2020). Assessing Supply Chain Risks in the Automotive Industry through a Modified MCDM-Based FMECA. Processes. 8(5):1-22. https://doi.org/10.3390/pr8050579S12285Tian, Q., & Guo, W. (2019). Reconfiguration of manufacturing supply chains considering outsourcing decisions and supply chain risks. Journal of Manufacturing Systems, 52, 217-226. doi:10.1016/j.jmsy.2019.04.005Wu, Y., Jia, W., Li, L., Song, Z., Xu, C., & Liu, F. (2019). 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