11 research outputs found

    Developing a resilient supply chain through supplier flexibility and reliability assessment

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    In this study, we examine the optimal allocation of demand across a set of suppliers in a supply chain that is exposed to supply risk and environmental risk. A two-stage mixed-integer programming model is used to develop a flexible sourcing strategy under disruptions. Our model integrates supplier selection and demand allocation with transportation channel selection and provides contingency plans to mitigate the negative impacts of disruptions and minimise total network costs. Finally, a numerical example is presented to illustrate the model and provide insights. The findings suggest that developing contingency plans using flexibility in suppliers' production capacity is an effective strategy for firms to mitigate the severity of disruptions. We also show that flexibility and reliability of the suppliers and regions play a significant role in determining contingency plans for during disruption. Findings generally show that highly flexible suppliers receive less allocation, and their flexible capacity is reserved for disruptions. For firms that do not incorporate risk management into supplier selection and allocation, the recommendation is to source from fewer, more reliable suppliers with less risk of disruption. Our findings also emphasise that the type of disruption has important implications for supplier selection and demand allocation. This study highlights the supply chain risk management strategy of regionalising as a means for minimising the impact of environmental disruptions

    An assessment of supply chain disruption mitigation strategies

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    We assess the effectiveness of incorporating three types of redundancy practices (pre-positioning inventory, backup suppliers, and protected suppliers) into a firm's supply chain that is exposed to ttwo types of risk: supply risk and environmental risk. Supply risk disrupts an individual supplier, while environmental risk makes a number of suppliers in a given region unavailable. An additional factor is supplier interdependence, where a disruption in one supplier may also disrupt other active suppliers. Utilizing the concept of a decision tree to capture different disruption scenarios, we develop a two-stage mixed-integer programming (two-stage MIP) model as a General Model to address the problem of supplier selection and order allocation under supplier dependencies and risk of disruptions. In the General Model, multi-sourcing is the only supplier strategy that the firm implements. Then we develop three separate extensions of the General Model, one for each of the three redundancy practices, and evaluate the expected supply chain cost of each extended model. We quantitatively show how adding redundancy to the supply chain in different forms, along with contingency plans, can help firms mitigate the impact of supply chain disruptions. The findings suggest that all three strategies reduce costs and risks compared to the General Model. An analysis of reliability, risks, dependence, and costs is conducted on each strategy to provide insights into supplier selection, demand allocation, and capability development in a supply chain under supply chain risks. Finally, we show that regionalizing a supply chain is an effective way to mitigate the negative impacts of environmental disruptions on the supply chain

    A review of the literature on the principles of enterprise and supply chain resilience: Major findings and directions for future research

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    The purpose of this paper is to investigate the research development in supply chain resilience. We undertake a literature survey to review the literature on enterprise and supply chain resilience. We aim to provide a platform for researchers and practitioners trying to identify the existing state of the work, gaps in current research, and future directions on the topic. For this purpose, we employed two methods to collect publications in supply chain resilience. First, we selected keywords and searched the relevant databases and journals. Next, we tracked the references of those papers collected in the first method to look for other publications published in conference proceedings and book chapters. As a result, a sample of 100 papers was collected, studied, and analyzed. We summarize our findings in several areas including enterprise and supply chain resilience definitions, supply chain resilience principles, and supply chain resilience strategies. Based on the assessment, we develop a framework for the principles of supply chain resilience that can be used as a basis for understanding supply chain resilience. (C) 2015 Elsevier B.V. All rights reserved
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