Optimization of network redundancy and contingency planning in sustainable and resilient supply chain resource management under conditions of structural dynamics
“…The simulation models are especially useful for analysis when the impacts of disruptions on SC performance need to be computed under conditions of time-dependant changes (Klibi andMartel, 2012, Ivanov, 2018b). Besides, detailed control policies can be analysed subject to a variety of financial, customer, and operational performance indicators (Li et al, 2019, Pavlov et al, 2019a, Ivanov, 2020. The simulation models consider logical and randomness constraints, such as randomness in disruptions, inventory, production, sourcing, and shipment control policies, and gradual capacity degradation and recovery .…”
Epidemic outbreaks are a special case of supply chain (SC) risks which is distinctively characterized by a long-term disruption existence, disruption propagations (i.e., the ripple effect), and high uncertainty. We present the results of a simulation study that opens some new research tensions on the impact of COVID-19 (SARS-CoV-2) on the global SCs. First, we articulate the specific features that frame epidemic outbreaks as a unique type of SC disruption risks. Second, we demonstrate how simulation-based methodology can be used to examine and predict the impacts of epidemic outbreaks on the SC performance using the example of coronavirus COVID-19 and anyLogistix simulation and optimization software. We offer an analysis for observing and predicting both short-term and long-term impacts of epidemic outbreaks on the SCs along with managerial insights. A set of sensitivity experiments for different scenarios allows illustrating the model's behavior and its value for decision-makers. The major observation from the simulation experiments is that the timing of the closing and opening of the facilities at different echelons might become a major factor that determines the epidemic outbreak impact on the SC performance rather than an upstream disruption duration or the speed of epidemic propagation. Other important factors are lead-time, speed of epidemic propagation, and the upstream and downstream disruption durations in the SC. The outcomes of this research can be used by decisionmakers to predict the operative and long-term impacts of epidemic outbreaks on the SCs and develop pandemic SC plans. Our approach can also help to identify the successful and wrong elements of risk mitigation/preparedness and recovery policies in case of epidemic outbreaks. The paper is concluded by summarizing the most important insights and outlining future research agenda.
“…The simulation models are especially useful for analysis when the impacts of disruptions on SC performance need to be computed under conditions of time-dependant changes (Klibi andMartel, 2012, Ivanov, 2018b). Besides, detailed control policies can be analysed subject to a variety of financial, customer, and operational performance indicators (Li et al, 2019, Pavlov et al, 2019a, Ivanov, 2020. The simulation models consider logical and randomness constraints, such as randomness in disruptions, inventory, production, sourcing, and shipment control policies, and gradual capacity degradation and recovery .…”
Epidemic outbreaks are a special case of supply chain (SC) risks which is distinctively characterized by a long-term disruption existence, disruption propagations (i.e., the ripple effect), and high uncertainty. We present the results of a simulation study that opens some new research tensions on the impact of COVID-19 (SARS-CoV-2) on the global SCs. First, we articulate the specific features that frame epidemic outbreaks as a unique type of SC disruption risks. Second, we demonstrate how simulation-based methodology can be used to examine and predict the impacts of epidemic outbreaks on the SC performance using the example of coronavirus COVID-19 and anyLogistix simulation and optimization software. We offer an analysis for observing and predicting both short-term and long-term impacts of epidemic outbreaks on the SCs along with managerial insights. A set of sensitivity experiments for different scenarios allows illustrating the model's behavior and its value for decision-makers. The major observation from the simulation experiments is that the timing of the closing and opening of the facilities at different echelons might become a major factor that determines the epidemic outbreak impact on the SC performance rather than an upstream disruption duration or the speed of epidemic propagation. Other important factors are lead-time, speed of epidemic propagation, and the upstream and downstream disruption durations in the SC. The outcomes of this research can be used by decisionmakers to predict the operative and long-term impacts of epidemic outbreaks on the SCs and develop pandemic SC plans. Our approach can also help to identify the successful and wrong elements of risk mitigation/preparedness and recovery policies in case of epidemic outbreaks. The paper is concluded by summarizing the most important insights and outlining future research agenda.
“…Research in SC reaction to disturbances is related to the semantic network analysis level with a focus on structural properties, complexity roles, and node/arc criticality . The studies (Basole and Bellamy 2014;Dolgui 2014a, 2014b;Kim, Chen, and Linderman 2015;Brintrup, Wang, and Tiwari 2015;Sawik 2017;Macdonald et al 2018;Yoon et al 2018;Scheibe and Blackhurst 2018;Pavlov et al 2018;Ojha et al 2018;Giannoccaro, Nair, and Choi 2017;Ivanov 2018Ivanov , 2019Dolgui, Ivanov, and Sokolov 2018;Li et al 2019;Pavlov et al 2019b) recognised the structural SC properties as crucial determinant to maintain stability and robustness and to achieve resilience. Another important observation in literature is a linkage of SC complexity and resilience (Blackhurst et al 2005;Nair and Vidal 2011;Bode and Wagner 2015;Dubey et al 2019a;Tan, Cai, and Zhang 2020).…”
Section: Viability Vs Stability Robustness and Resilience Of Scsmentioning
An intertwined supply network (ISN) is an entirety of interconnected supply chains (SC) which, in their integrity secure the provision of society and markets with goods and services. The ISNs are open systems with structural dynamics since the firms may exhibit multiple behaviours by changing the buyer-supplier roles in interconnected or even competing SCs. From the positions of resilience, the ISNs as a whole provide services to society (e.g. food service, mobility service or communication service) which are required to ensure a long-term survival. The analysis of survivability at the level of ISN requires a consideration at a large scale as resilience of individual SCs. The recent example of coronavirus COVID-19 outbreak clearly shows the necessity of this new perspective. Our study introduces a new angle in SC resilience research when a resistance to extraordinary disruptions needs to be considered at the scale of viability. We elaborate on the integrity of the ISN and viability. The contribution of our position study lies in a conceptualisation of a novel decision-making environment of ISN viability. We illustrate the viability formation through a dynamic game-theoretic modelling of a biological system that resembles the ISN. We discuss some future research areas.
“…The viability of the supply chain is the highest analysis level for SC reactions to the disturbances based upon stability, robustness and resilience (Ivanov 2020). In past research studies, SC response to the disturbances has been studied at the semantic network analysis level, structural properties and complexity factors (Ivanov, Sokolov, and Kaeschel 2010;Li and Zobel 2020;Pavlov et al 2019). The extent of the viability is survival orientation and ecosystem focus.…”
Section: Factors For Enhancing Survivability Of Sustainable Supply Chmentioning
The pandemic has created a restrictive working system including remote working, and flexible hours for the firms and employees all around the globe, thus transforming into a platform economy may reduce unemployment and enhance job opportunities. Therefore, firms are now trying to identify the ways for enhancing survivability of Sustainable Supply Chains (SSCs). This study has made an effort to develop a framework for enhancing survivability of SSCs to survive in and post-COVID-19 pandemic. This study has utilised Stepwise Weight Assessment Ratio Analysis (SWARA) method for identifying the significant factors for enhancing survivability of SSCs to be focused in pandemic situation. The study revealed that 'Supply Chain Network Viability (SCV)' is the main criterion for managing buyer-supplier relationship and enhancing survivability of SSCs during and post-COVID-19 situation. This study is helpful for firms, suppliers, and other stakeholders to focus on the identified factors for healthier future.
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