Supply Chain Recovery Strategies for High Demand Products Based on the Impact of Capacity and Transportation Disruptions

Abstract

The outbreak of the COVID-19 has had a huge impact on the manufacturing supply chain, especially the supply chain of high-demand products, and is mainly reflected in the double interruption of production capacity and transportation. The research aims to use system dynamics to explore how government subsidies can play a role in supply chain recovery when government subsidies are limited, which provides a new idea for improving supply chain management. In order to explore the impact of government subsidy strategies on supply chain recovery in the context of supply chain disruptions, this paper takes high-demand products during the epidemic as the research object, and takes the government’s subsidy choices under the impact of production capacity and transportation disruptions as the entry point for recovery strategies. The cumulative total profit of chain members is used as a judgment indicator, and systems dynamics is used to conduct modeling and simulation to build a secondary supply chain for manufacturers and distribution centers and simulate eight scenarios of different levels of production capacity and transportation interruptions, clarifying the impact of government subsidies on supply the impact of chain recovery. The research results show that, for secondary supply chains, whether in the scenario of partial or complete transportation interruption, government subsidies to manufacturers make supply chain recovery more effective, government subsidies do not have an immediate recovery effect during production capacity and transportation interruptions, and that under the complete interruption of production capacity, the cumulative total value of the supply chain after increasing government subsidies has rebounded in a spiral.

Multi-scenario flexible contract coordination for determining the quantity of emergency medical suppliers in public health events

“…The nature of emergency medical supplies, shaped by the uncertainty of sudden disasters, encompasses the following key aspects: (1) Uncertainty: the occurrence of natural disasters and emergencies brings about uncertainty regarding the timing, location, intensity, and impact scope. (2) Irreplaceability: emergency medical supplies differ from general supplies as they are specially designed for use in specific environments ( 26 ). (3) Timeliness: timeliness stands out as a critical feature of emergency medical supplies.…”

Disruption Risk Analysis of Substitutable Dual Product Supply Chain: A System Dynamics Framework

“…Azizsafaei et al [10] mainly use system dynamics modeling methods to generate system risk management models, analyze the impact of dynamic risks on the behavior of the food supply chain system, and help improve management's insight into the key role of system dynamics models in analyzing various types of risks and improving their efciency in the food supply chain process. In order to study the impact of government subsidy strategies on supply chain recovery in the context of supply chain interruption, Ju et al [11] focused on products with high demand during the epidemic period and used the selection of government subsidies under the infuence of production capacity and transportation interruption as the entry point for recovery strategies. Using the cumulative total proft of chain members as the judgment indicator, modeling and simulation are conducted using system dynamics to construct a secondary supply chain for manufacturers and distribution centers, simulating eight scenarios of diferent production capacity levels and transportation interruptions, and clarifying the impact of government subsidies on supply and chain recovery.…”

“…(ii) Current literature on supply chain disruptions primarily examines single disruption modes [8][9][10][11], neglecting the complexity of mixed interruptions involving various levels and products. In contrast, our study delves into these intricacies and demonstrates that the impact of multisupplier disruption may be less severe than that of single supplier disruption.…”

Supply chain management and industry 4.0

“…Simulation can also be used to study the impact of disruptions on the supply chain. By simulating different types of disruptions, managers can identify the most vulnerable parts of the system and develop contingency plans to minimize the impact of disruptions (Ju et al, 2022).…”