Review of Quantitative Methods for Supply Chain Resilience Analysis

Supply chain resilience (SCR) manifests when the network is capable to withstand, adapt, and recover from disruptions to meet customer demand and ensure performance. This paper conceptualizes and comprehensively presents a systematic review of the recent literature on quantitative modeling the SCR while distinctively pertaining it to the original concept of resilience capacity. Decision-makers and researchers can benefit from our survey since it introduces a structured analysis and recommendations as to which quantitative methods can be used at different levels of capacity resilience. Finally, the gaps and limitations of existing SCR literature are identified and future research opportunities are suggested

Mitigating Space Industry Supply Chain Risk Thru Risk-Based Analysis

Using risk-based analysis to consider supply chain disruptions and uncertainty along with potential mitigation strategies in the early stages of space industry projects can be used avoid schedule delays, cost overruns, and lead to successful project outcomes. Space industry projects, especially launch vehicles, are complicated assemblies of high-technology and specialized components. Components are engineered, procured, manufactured, and assembled for specific missions or projects, unlike make-to-stock manufacturing where assemblies are produced at a mass production rate for customers to choose off the shelf or lot, like automobiles. The supply chain for a space industry project is a large, complicated web where one disruption, especially for sole-sourced components, could ripple through the project causing delays at multiple project milestones. This ripple effect can even cause the delay or cancelation of the entire project unless project managers develop and employ risk mitigations strategies against supply chain disruption and uncertainty. The unpredictability of when delays and disruptions may occur makes managing these projects extremely difficult. By using risk-based analysis, project managers can better plan for and mitigate supply chain risk and uncertainty for space industry projects to better manage project success. Space industry project supply chain risk and uncertainty can be evaluated through risk assessments at major project milestones and during the procurement process. Mitigations for identified risks can be evaluated and implemented to better manage project success. One mitigation strategy to supply chain risk and uncertainty is implementing a dual or multi-supplier sourcing procurement strategy. This research explores using a risk-based analysis to identify where this mitigation strategy can be beneficial for space industry projects and how its implementation affects project success. First a supply chain risk assessment and mitigation decision tool will be used at major project milestones to show where a multi-sourcing strategy may be beneficial. Next, updated supplier quote evaluation tools will confirm the usage of multiple suppliers for procurement. Modeling and simulation are then used to show the impact of that strategy on the project success metrics of cost and schedule

A Representation of Tactical and Strategic Precursors of Supply Network Resilience Using Simulation Based Experiments

Modern supply chains are becoming increasingly complex and are exposed to higher levels of risk. Globalization, market uncertainty, mass customization, technological and innovation forces, among other factors, make supply networks more susceptible to disruptions (both those that are man-made and/or ones associated with natural events) that leave suppliers unavailable, shut-down facilities and entail lost capacity. Whereas several models for disruption management exist, there is a need for operational representations of concepts such as resilience that expand the practitioners’ understanding of the behavior of their supply chains. These representations must include not only specific characteristics of the firm’s supply network but also its tactical and strategic decisions (such as sourcing and product design). Furthermore, the representations should capture the impact those characteristics have on the performance of the network facing disruptions, thus providing operations managers with insights on what tactical and strategic decisions are most suitable for their specific supply networks (and product types) in the event of a disruption. This research uses Agent-Based Modeling and Simulation (ABMS) and an experimental set-up to develop a representation of the relationships between tactical and strategic decisions and their impact on the performance of multi-echelon networks under supply uncertainty. Two main questions are answered: 1) How do different tactical and strategic decisions give rise to resilience in a multi-echelon system?, and 2) What is the nature of the interactions between those factors, the network’s structure and its performance in the event of a disruption? Product design was found to have the most significant impact on the reliability (Perfect Order Fulfillment) for products with high degrees of componentization when dual sourcing is the chosen strategy. However, when it comes to network responsiveness (Order Fulfillment Cycle Time), this effect was attenuated. Generally, it was found that the expected individual impact these factors have on the network performance is affected by the interactions between them

A mathematical modelling approach for managing sudden disturbances in a three-tier manufacturing supply chain

© 2019, Springer Science+Business Media, LLC, part of Springer Nature. This paper aims to develop a recovery planning approach in a three-tier manufacturing supply chain, which has a single supplier, manufacturer, and retailer under an imperfect production environment, in which we consider three types of sudden disturbances: demand fluctuation, and disruptions to production and raw material supply, which are not known in advance. Firstly, a mathematical model is developed for generating an ideal plan under imperfect production for a finite planning horizon while maximizing total profit, and then we re-formulate the model to generate the recovery plan after happening of each sudden disturbance. Considering the high commercial cost and computational intensity and complexity of this problem, we propose an efficient heuristic, to obtain a recovery plan, for each disturbance type, for a finite future period, after the occurrence of a disturbance. The heuristic solutions are compared with a standard solution technique for a considerable number of random test instances, which demonstrates the trustworthy performance of the developed heuristics. We also develop another heuristic for managing the combined effects of multiple sudden disturbances in a period. Finally, a simulation approach is proposed to investigate the effects of different types of disturbance events generated randomly. We present several numerical examples and random experiments to explicate the benefits of our developed approaches. Results reveal that in the event of sudden disturbances, the proposed mathematical and heuristic approaches are capable of generating recovery plans accurately and consistently

A Bi-Objective Programming Model for Reliable Supply Chain Network Design Under Facility Disruption

Supply chain networks generally are composed of four main entity types: supplier, production centers, distribution centers and demand zones that consist of facilities whose activities involve the transformation of raw material into finished products that are later delivered from the suppliers to the end customers. Supply chain network design as the most important strategic decision in supply chain management plays an important role in the overall environmental and economic performance of the supply chain. The nature and complexity of today’s supply chains network make them vulnerable to various risks. One of the most important risks is disruption risk. Disruptions are costly and can be caused by internal or external sources to the supply chain, thus it is crucial that managers take appropriate measures of responses to reduce its negative effects. A recovery time of disrupted facilities and return it to the normal condition can be an important factor for members of the supply chain. In this paper, a bi-objective model is developed for reliable supply chain network design under facility disruption. To solve this model, we have applied two approaches, i.e., ε constraint method as an exact method and non- dominated sorting genetic algorithm (NSGAII) as a meta-heuristic method

Resilience as a part of international supply chain management strategy:insights of resilient strategies

Abstract. This thesis deals with improving resilience in international supply chain management. The study examines the structures and dynamics of the supply chain, as well as the potential threats that may affect the supply chains. During the study, the following events took place: Covid-19 pandemic, the blockage of the Suez Canal, and recent delivery difficulties due to political influences such as Brexit, which is why these particular events have been taken into consideration in this study. In the time of improving internationalization, supply chains have become increasingly complex to manage. Supply chain structures have changed towards network-like features. One company can be part of several supply chains and as a result, the structures of the supply chain network are very complex. In their strategy work, supply chain management faces many uncertainties, which are affected by the possibility of various disruptions. Disruptions in the organization of the supply chain can affect the entire supply chain network. Disruptions can be longer-term external changes, such as increased political regulation, changes in regional stability, or a pandemic. More shorter-term disruptors can be, for example, changed weather conditions, a fire or a terrorist attack. The effects of disruptions on supply chains can lead to, for example, production issues, weakened cooperation, overstocking, inefficient use of capital, and even endanger business continuity. Some risks can be prepared for, but when the work of others within the supply chain are disrupted, it is only possible to adapt to the prevailing situation in order to minimize the negative effects. Increasing resilience requires both proactive and reactive strategy work. Resilience aims to make operations more flexible so that supply chains can respond to changing situations. The study consists of material compiled in a survey, as well as previous literature and articles. The key findings of the study are that improving market predictability, transparency in the operations of supply chain organizations, and strong collaborations have a positive impact on resilience in the supply chains

DEVELOPMENT OF A SUPPLIER SEGMENTATION METHOD FOR INCREASED RESILIENCE AND ROBUSTNESS: A STUDY USING AGENT BASED MODELING AND SIMULATION

Supply chain management is a complex process requiring the coordination of numerous decisions in the attempt to balance often-conflicting objectives such as quality, cost, and on-time delivery. To meet these and other objectives, a focal company must develop organized systems for establishing and managing its supplier relationships. A reliable, decision-support tool is needed for selecting the best procurement strategy for each supplier, given knowledge of the existing sourcing environment. Supplier segmentation is a well-established and resource-efficient tool used to identify procurement strategies for groups of suppliers with similar characteristics. However, the existing methods of segmentation generally select strategies that optimize performance during normal operating conditions, and do not explicitly consider the effects of the chosen strategy on the supply chain’s ability to respond to disruption. As a supply chain expands in complexity and scale, its exposure to sources of major disruption like natural disasters, labor strikes, and changing government regulations also increases. With increased exposure to disruption, it becomes necessary for supply chains to build in resilience and robustness in the attempt to guard against these types of events. This work argues that the potential impacts of disruption should be considered during the establishment of day-to-day procurement strategy, and not solely in the development of posterior action plans. In this work, a case study of a laser printer supply chain is used as a context for studying the effects of different supplier segmentation methods. The system is examined using agent-based modeling and simulation with the objective of measuring disruption impact, given a set of initial conditions. Through insights gained in examination of the results, this work seeks to derive a set of improved rules for segmentation procedure whereby the best strategy for resilience and robustness for any supplier can be identified given a set of the observable supplier characteristics

The importance of resource interaction in strategies for managing supply chain disruptions

The turbulent business environment highlights the need for strategies for mitigating, responding to, and recovering from (that is, managing) supply chain disruptions. Resources are central in these strategies but remain unspecified in the literature. This paper shows how the resource interaction approach (RIA) can help under-standing resources in this setting by acknowledging their interactive and networked nature. Based on a con-ceptual discussion that compares key assumptions within the supply chain risk management (SCRM) and supply chain risk resilience (SCRes) literatures with the RIA, we propose an alternative approach to strategies for managing supply chain disruptions. We challenge the SCRM and SCRes literatures by emphasizing interdepen-dence (as opposed to independence) and pointing to relationships as key resources in strategies for managing supply chain disruptions. Collaboration relying on an interplay between temporary and permanent organizing is suggested as a starting point instead of being just one of several alternative strategies