Strategic Formation and Reliability of Supply Chain Networks

Amelkin, Victor; Vohra, Rakesh

doi:10.1145/3391403.3399450

Cited by 6 publications

(1 citation statement)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…These disruptions can drastically hamper the supply chain performance as well as can incur huge losses in terms of productivity loss, revenue loss, and damage to the brand's reputation (Tian et al 2019a, b). Over the last few years, supply chain disruption management has become a significant interest of research (Ambulkar et al 2015;Amelkin and Vohra 2019;Ivanov et al 2016;Pavlov et al 2018;Sawik 2019;Islam et al 2020).…”

Section: Related Work and Contributionsmentioning

confidence: 99%

A supply chain disruption risk mitigation model to manage COVID-19 pandemic risk

Shahed

Azeem

Ali

et al. 2021

Environ Sci Pollut Res

107

View full text Add to dashboard Cite

This study develops a mathematical model to mitigate disruptions in a three-stage (i.e., supplier, manufacturer, retailer) supply chain network subject to a natural disaster like COVID-19 pandemic. This optimization model aims to manage supply chain disruptions for a pandemic situation where disruptions can occur to both the supplier and the retailer. This study proposes an inventory policy using the renewal reward theory for maximizing profit for the manufacturer under study. Tested using two heuristics algorithms, namely the genetic algorithm (GA) and pattern search (PS), the proposed inventory-based disruption risk mitigation model provides the manufacturer with an optimum decision to maximize profits in a production cycle. A sensitivity analysis was offered to ensure the applicability of the model in practical settings. Results reveal that the PS algorithm performed better for such model than a heuristic method like GA. The ordering quantity and reordering point were also lower in PS than GA. Overall, it was evident that PS is more suited for this problem. Supply chain managers need to employ appropriate inventory policies to deal with several uncertain conditions, for example, uncertainties arising due to the COVID-19 pandemic. This model can help managers establish and redesign an inventory policy to maximize the profit by considering probable disruptions in the supply chain network.

show abstract

Section: Related Work and Contributionsmentioning

confidence: 99%

A supply chain disruption risk mitigation model to manage COVID-19 pandemic risk

Shahed

Azeem

Ali

et al. 2021

Environ Sci Pollut Res

107

View full text Add to dashboard Cite

show abstract

Networks and Economic Fragility

Elliott

Golub

2022

Annu. Rev. Econ.

View full text Add to dashboard Cite

Many firms, banks, or other economic agents embedded in a network of codependencies may experience a contemporaneous, sharp drop in functionality or productivity following a shock—even if that shock is localized or moderate in magnitude. We offer an extended review of motivating evidence that such fragility is a live concern in supply networks and in financial systems. We then discuss network models of fragility, focusing on the forces that make aggregate functionality especially sensitive to the economic environment. The key structural features of networks that determine their fragility are reviewed, with an emphasis on the importance of phase transitions. We then turn to endogenous decisions, both by market participants (e.g., firms investing in network formation and robustness) and by planners (e.g., authorities undertaking macroprudential regulation). Fragility has some distinctive implications for such decisions.

show abstract

Supply Network Formation and Fragility

Elliott

Golub

Leduc

2022

American Economic Review

View full text Add to dashboard Cite

We model the production of complex goods in a large supply network. Each firm sources several essential inputs through relationships with other firms. Individual supply relationships are at risk of idiosyncratic failure, which threatens to disrupt production. To protect against this, firms multisource inputs and strategically invest to make relationships stronger, trading off the cost of investment against the benefits of increased robustness. A supply network is called fragile if aggregate output is very sensitive to small aggregate shocks. We show that supply networks of intermediate productivity are fragile in equilibrium, even though this is always inefficient. The endogenous configuration of supply networks provides a new channel for the powerful amplification of shocks. (JEL D21, G31, L14)

show abstract

Strategic Formation and Reliability of Supply Chain Networks

Cited by 6 publications

References 0 publications

A supply chain disruption risk mitigation model to manage COVID-19 pandemic risk

A supply chain disruption risk mitigation model to manage COVID-19 pandemic risk

Networks and Economic Fragility

Supply Network Formation and Fragility

Contact Info

Product

Resources

About