On the quantification of operational supply chain resilience

Abstract

Operational disruptions impact a supply chain's ability to match supply and demand. To remain competitive, supply chains need to be resilient and thus capable of rapidly and effectively recovering from operational disruptions. Supply chain resilience is inherently multidimensional, as it spans across multiple tiers, and thus is difficult to quantify. Extant research has measured the transient response through a single-dimension or single-organisation as a proxy for operational resilience. Whilst this greatly simplifies the analysis, it is also potentially misleading, as an erroneous selection of metric (s) may lead to an inaccurate evaluation of the transient response. This research extends the understanding of operational resilience via quantitative evaluation of multiple transient response measures across multiple tiers; the objective being to construct a multidimensional, multi-echelon operational supply chain resilience metric. The study utilises disruptions as experimental inputs for a serial supply chain simulation model; results are obtained for individual measurements of the transient response across multiple supply chain tiers. Analysis indicates that individual dimensions of resilience can adequately explain the transient response at the single-firm level, whilst aggregation of multiple resilience dimensions across multiple tiers has greater capacity to holistically capture the performance response to supply chain disruptions.

Managing Capabilities for Supply Chain Resilience Through it Integration

“…Moreover, to identify the relationship between redundancies and flexibility to resilience, specific indexes should be created to measure the possible usage of these capabilities in supply chain management. Research has been done in the quantification of supply chain resilience; however, the model must address multiple criteria, and still a well-recognized index is not established (Munoz & Dunbar, 2015).…”

“…However, the challenge of shifting trends and the constant disturbances of the market increase the instability of the supply chain. Recent scientific literature amplifies the supply chain resilience problem and recommends various strategies to cope with the disturbances (Ambulkar, Blackhurst & Grawe, 2015;Elleuch, Dafaoui, Elmhamedi & Chabchoub, 2016;Gonçalves & Chicareli, 2014;Kim, Chen & Linderman, 2015;Mensah & Merkuryev, 2014;Munoz & Dunbar, 2015;Nikookar, Takala, Sahebi & Kantola, 2014). There are different approaches to define and measure resilience in the supply chain.…”

The Evolution of Resilience in Supply Chain Management: A Retrospective on Ensuring Supply Chain Resilience

“…) Agent‐based simulations (Wu et al. ) Structural equation modeling (Munoz and Dunbar ) Petri‐net modeling (Blackhurst et al. )…”

Natural disasters, PC supply chain and corporate performance

“…This is related to the nature of such a unique event, as the firm faces further operational costs and adjustments. Thus, it represents an alternate short-term effect (Munoz and Dunbar, 2015).…”