Structural-aware simulation analysis of supply chain resilience

Supply chain resilience (SCRES) refers to the ability of a supply chain (SC) to both resist disruptions and recover its operational capability after disruptions. This paper presents a simulation model that includes network structural properties in the analysis of SCRES. This simulation model extends an existing graph model to consider operational behaviours in order to capture disruption-recovery dynamics. Through structural analysis of a supply chain network (SCN), mitigation strategies are designed to build redundancy, while contingency strategies are developed to prioritise recovery of the affected SCN. SCRES indexes are proposed by sampling SC performance measures of disruption for each plant and aggregating the measures based on the criticality of the plants in the SCN. The applicability of this simulation model is demonstrated in a real-world case study of different disruption scenarios. The application of mitigation and contingency strategies is shown to both improve recovery and reduce the total costs associated with disruptions. Through such simulation-based analysis, firms can gain insight into the SCRES of their existing SCNs and identify suitable strategies to improve SCRES by considering recovery time and costs.     

A graph-based model to measure structural redundancy for supply chain resilience

Globalisation and lean initiatives increase the vulnerabilities of the supply chains (SC), where disruptions in any plant in a supply chain network (SCN) can propagate throughout the whole SCN. Redundancy is part of the SC re-engineering to improve supply chain resilience (SCRES). This paper presents a conceptual model of an SCN using graph theory, considering the relationships between plants and materials. Based on the model, the structural redundancy of the SCN is measured, which is used to assess SCRES. This assessment approach focuses on the resilience of the SCN against disruptions. Case studies are discussed to illustrate the applicability of this model and show that increasing structural redundancy of the SCN improves SCRES against disruptions.     

Supply chain resilience: model development and empirical analysis

The purpose of this study is to develop a hierarchy-based model for supply chain resilience (SCRES), explaining the dynamics between various enablers and validating the model empirically. Literature review and a survey identified the enablers. Interpretive structural modelling (ISM) is used to analyse the levels of relationships among enablers. Based on their driving power and dependence, these enablers are also classified into different categories. Structural equation modelling is used to validate the hierarchical SCRES model and test the path analytical model. The study provides empirical justification for a framework that identifies 13 key enablers of resilient supply chain practices and describes the relationship among them using ISM. It also classifies them using Matrix of Cross Impact Multiplications Applied to Classification analysis on the basis of their driver power and dependence. The key finding is that using the proposed model, organisations can enhance their resilience potential by modifying their strategic assets. The model was tested using rigorous statistical tests including convergent validity, discriminant validity and reliability. The holistic view offered by the proposed model depicts the relationship among enablers to achieve SCRES.     

Supply chain risk and resilience: theory building through structured experiments and simulation

The research literature of supply chain risk and resilience is at a critical developmental stage. Studies have established the importance of these topics both to researchers and practitioners. They also have identified factors contributing to risk, the impact of risk and disruptions on performance, and the strategies and tactics used to build the capacity for supply chain resilience. Although these efforts can provide support for constructing a theory of risk and resilience, researchers are currently restricted in their ability to build such a theory by the difficulty of collecting the necessary data. This paper contributes to this literature development effort by summarising prior research reviews and developing a three-component framework aimed at helping researchers to build better theories. This is accomplished through combining structured experimental design with discrete-event simulations of supply chains. The result is a methodology that allows researchers to develop better understanding of the factors that link a disruption to its impact on supply chain performance through both direct and interaction effects. Following the methodology development, the paper concludes with an example using the factors of shock interarrival time, supply chain connectivity and buffer stocks to illustrate the potential for contributing to the theory-building process.     

Resilience strategies for sustainable supply chains under budget constraints in the post COVID-19 era

The COVID-19 outbreak has caused uncertainty risk surges, increased sustainable supply chain vulnerabilities, and challenges to sustainable supply chain resilience (SSCR) management. Therefore, improving SSCR is necessary to alleviate vulnerabilities, and SSCR management must generate large capital investments. However, the economic downturn brought about by the COVID-19 epidemic has made some companies have limited budgets that can be used to improve SSCR. Therefore, the design of resilience solutions needs to fully consider the constraints of budgetary costs. Most of the existing related literature only discusses optimal resilience solutions under certain cost constraints, so such resilience solutions cannot be applied to most enterprises. In this study, we set the cost constraint as a variable quantity, using resilience efficiency and customer satisfaction as indicators, to determine the changing laws of optimal resilience strategies when cost constraints change. These rules can be applied to enterprises with different budgeted costs. Our findings suggest that companies should prioritize sacrificing resilience measures (RMs) related to adaptive capacity when budget costs gradually decline, and RMs related to absorptive capacity are indispensable at all budget levels. Furthermore, the pursuit of environmental and social sustainability cannot be abandoned, no matter how limited the flexible budget may be.     

Scheduling of recovery actions in the supply chain with resilience analysis considerations

Supply chain engineering models with resilience considerations have been mostly focused on disruption impact quantification within one analysis layer, such as supply chain design or planning. Performance impact of disruptions has been typically analysed without scheduling of recovery actions. Taking into account schedule recovery actions and their duration times, this study extends the existing literature to supply chain scheduling and resilience analysis by an explicit integration of the optimal schedule recovery policy and supply chain resilience. In particular, we compute a schedule optimal control policy and analyse the performance of this policy by varying the perturbation vector and representing the outcomes of variations in the form of an attainable set. We propose a scheduling model that considers the coordination of recovery actions in the supply chain. Further, we suggest a resilience index by using the notion of attainable sets. The attainable sets are known in control theory; their calculation is based on the schedule control model results and the minimax regret approach for continuous time parameters given by intervals. We show that the proposed indicator can be used to estimate the impact of disruption and recovery dynamics on the achievement of planned performance in the supply chain.     

Supply chain resilience: role of complexities and strategies

This article introduces the relationship between complexities and proactive management practices in supply chain resilience, particularly due to global sourcing (GS) strategies. The main objectives of this paper are as follows: (i) explain the various aspects of GS rather than reporting the trends and implications described in the literature, (ii) view GS in terms of complexity theory and (iii) investigate the resilience of supply chain due to GS complexity and suggest strategies to overcome complexities. We propose a GS resilience framework for future researchers to analyse the impact of GS complexity factors on supply chain resilience with respect to three outcomes: (i) risk and innovation, (ii) benefit in terms of sales promotion and (iii) challenges and responsiveness. Based on the framework, this introductory article summarises the papers appear in this special issue. This article would be useful to researchers and practitioners to further explore the role of complexities, proactive management strategies on GS resilience.     

Selection of risk mitigation strategy in electronic supply chains using grey theory and digraph-matrix approaches

Supply chains are becoming more lengthy and complex due to globalisation and vertical integrations. In this context, adopting proactive approaches is needed for dealing with changing risks and vulnerabilities for securing supply chain systems. Supply chain risks are interlinked and thus, one mitigation strategy can reduce many of other supply chain risks. For example, aggregate or pooling demand reduces forecast risks, capacity risks and inventory risks. Also, some of the risk mitigation strategies have negative influences over certain supply chain risks as adding capacity has a negative influence on capacity risks. Twelve major supply chain risk categories and 21 risk mitigation strategies with typical focus on electronics manufacturing supply chains have been identified. A combination of grey theory and digraph-matrix methodologies has been used for quantifying various supply chain risk mitigation strategies and this approach is not seen in literature till date. The proposed model was also tested taking a case study of an Indian electronics manufacturing company. Obtained results were also subject to sensitivity analysis. The net positive influence values of risk mitigation strategies proposed in this research could effectively be used by top management for ascertaining their risk mitigation strategies for better management of supply chains as a whole.     

How do digital technologies improve supply chain resilience in the COVID-19 pandemic? Evidence from Chinese manufacturing firms

Digital technologies (DTs) can assist businesses in coping with supply chain (SC) disruptions caused by unpredictability, such as pandemics. However, the current knowledge of the relationship between DTs and supply chain resilience (SCR) is insufficient. This study draws on information processing theory to develop a serial mediation model to address this deficiency. We analyze a sample set consisting of 264 Chinese manufacturers. The empirical results reveal that digital supply chain platforms (DSCPs), as well as supply chain traceability (SCT) and supply chain agility (SCA), fully mediate the favorable association between DTs and SCR. Specifically, the four significant indirect paths indicated that firms can improve SCR only if they use DTs to directly or indirectly improve SCT and SCA (through DSCPs). Our study contributes to the literature on resilience by examining the possible mechanism of mediation through which DTs influence SCR. The findings also offer essential insights for firms to modify their digital strategies and thrive in a turbulent environment.     

Fostering emergent resilience: the complex adaptive supply network of disaster relief

The frequency and intensity of disasters continue to increase. Following large-scale and catastrophic disasters, local organisations integrate with other responding organisations to form hastily disaster relief supply chain networks. Such supply networks are infrequently activated in a single location, generate unparalleled uncertainty, change quickly, and are driven by the urgency of saving lives and restoring livelihoods. Unfortunately, even where sound supply chain management practices are used, supply networks have encountered diverse levels of resilience and adequate disaster relief performance has remained elusive. In this paper, several unique characteristics that disaster relief efforts exhibit are examined as compared with demand-driven, steady-state supply chains. Important differences in the flows of resource, money, and information are identified. A complex adaptive supply network (CASN) lens is used to frame what existing literature has uncovered regarding disaster relief efforts, showing how relief organisations, their interactions, and their environmental context help determine the level of resilience that supply networks experience following disasters. This CASN characterisation is leveraged to help explain why traditional supply chain management practices lead to varied results in disaster relief. Finally, complexity science theory is drawn on to set forth eight testable propositions that may help to enhance supply network resilience.     

A systematic review of China’s belt and road initiative: implications for global supply chain management

China’s Belt and Road Initiative (BRI) is one of the world’s largest infrastructure projects, with its potential political and economic impact being widely discussed since its inception in 2013. Yet the phenomenon has received only limited attention in the Supply Chain Management (SCM) literature. In response, we first conduct a broad systematic review of the literature to assess how China’s BRI is portrayed. Using this as a backdrop, we then distil the likely impact of the BRI on location decisions and supply chain flows. Finally, in a broader discussion of the SCM literature, we explore the implications of the BRI for future research in four key areas: supply chain configuration, supply chain resilience, sustainable SCM, and cross border SCM. While these areas are not new, the BRI presents a unique context that can be used to enhance theory and understanding in each area. The BRI reduces time distance independent of geographical distance by diverting supply chain flows from established routes to new routes via far less accessible regions. This introduces new risks and sustainability issues that call for multi-criteria decision support systems. Another important issue is the adoption and diffusion of the BRI since this will ultimately determine project success.     

Blockchain adoption or contingent sourcing? Advancing food supply chain resilience in the post-pandemic era

In the post-pandemic era, food supply chains and firms therein are facing unprecedented severe challenges, because once infection is detected, numerous products must be recalled or abandoned, and both suppliers and retailers in the supply chain suffer enormous loss. To survive under the pandemic, retailers have adopted different sourcing strategies, such as contingent sourcing, which, in turn, affect the upstream suppliers and hence the resilience of the whole supply chain. With the rapid development of digital technologies, retailers nowadays can utilize blockchain as a reliable and efficient way to reduce product risk and hence advance the resilience of food supply chains by improving product traceability and inspection accuracy, and making sourcing transparent. In this paper, we develop a game-theoretic model to investigate the interrelation between the retailer’s decisions on blockchain adoption and sourcing strategies. We consider that a retailer originally orders from a risky supplier while conducting an imperfect inspection to detect infected products before selling. The retailer may speculatively keep on ordering from the risky supplier or adopt contingent sourcing by ordering from an alternative safe supplier. The retailer also has an option to implement blockchain to improve the inspection accuracy and product traceability. We derive the optimal retail prices under different sourcing strategies with and without blockchain adoption and then analyze the incentives for sourcing strategy and blockchain adoption. Then, we identify the conditions of an all-win situation for food retailer, supplier, supply chain resilience, and consumers with/without government subsidy. Finally, we extend to consider the situation that some consumers have health-safety concerns and preferences for blockchain adoption.     

Supply chain resilience for single and multiple sourcing in the presence of disruption risks

This paper investigates the use of sourcing strategies to achieve supply chain resilience under disruptions. The coping strategies considered are single and multiple sourcing, backup supplier contracts, spot purchasing, and collaboration and visibility. Collaboration and visibility, which affect suppliers’ recovery capabilities and a buyer’s warning capability, have not been similarly modelled in the past. A scenario-based mathematical model is developed such that it considers objectives under uncertainties including disruption risks and operational risks. A broad numerical study examines its output for various risk attitudes in a decision-maker, ranging from risk neutral to risk averse. The sensitivity of procurement strategies to other key parameters such as recovery and warning capabilities is examined. One of the major findings is that buyer’s warning capability plays a vital role in enhancing supply chain resilience. We seek to build on these efforts to further support disruption planning and mitigation and to obtain a deeper understanding of the relationship between supply chain characteristics and resilience.     

Reconfigurable supply chain: the X-network

Research on supply chain (SC) digitalization, resilience, sustainability and leagility has remarkably progressed, most of it focused on the individual contributions of these four major frameworks. However, a lack of integration spanning these individual frameworks can be observed. In this conceptual paper, we hypothesize that reconfigurability can be considered such an integral perspective that consolidates the research in SC adaptation to ever changing environments. We theorize a new notion – a Reconfigurable SC or the X-network – that exhibits some crucial design and control characteristics for complex value-adding systems in highly vulnerable environments. We support our argumentation and conceptual viewpoints by a literature analysis along with tertiary studies to review and structure contextual factors of designing the X-networks. We propose respective frameworks and discuss the implementation principles and technologies at the macro and micro levels. Two novel concepts – dynamic SC meta-structures and dynamic autonomous services – are introduced. Distinctively, we go beyond the existing knowledge to predict proactively the future directions in the reconfigurable SCs. Our results can be of value for decision-makers to decipher chances and barriers in contemporary SC transformations.     

Digitalization for supply chain resilience and robustness: The roles of collaboration and formal contracts

Black swan events such as the coronavirus (COVID-19) outbreak cause substantial supply chain disruption risks to modern companies. In today’s turbulent and complex business environment, supply chain resilience and robustness as two critical capabilities for firms to cope with disruptions have won substantial attention from both the academia and industry. Accordingly, this study intends to explore how digitalization helps build supply chain resilience and robustness. Adopting organizational information processing theory, it proposes the mediating effect of supply chain collaboration and the moderating effect of formal contracts. Using survey data of Chinese manufacturing firms, the study applied structural equation modelling to test the research model. Results show that digitalization has a direct effect on supply chain resilience, and supply chain collaboration can directly facilitate both resilience and robustness. Our study also indicates a complementary mediating effect of supply chain collaboration on the relationship between digitalization and supply chain resilience and an indirect-only mediation effect on the relationship between digitalization and supply chain robustness. Findings reveal the differential roles of digitalization as a technical factor and supply chain collaboration as an organizational factor in managing supply chain disruptions. Paradoxically, formal contracts enhance the relationship between digitalization and supply chain resilience but weaken the relationship between supply chain collaboration and supply chain resilience. The validation of moderating effects determines the boundary conditions of digitalization and supply chain collaboration and provides insights into governing supply chain partners’ behavior. Overall, this study enhances the understanding on how to build a resilient and robust supply chain.     

A control engineering approach to the assessment of supply chain resilience

There is no consensus on the supply chain management definition of resilience. To aid in evaluating the dynamic behaviour of such systems we need to establish clearly elucidated performance criteria that encapsulate the attributes of resilience. A literature review establishes the latter as readiness, responsiveness and recovery. We also identify robustness as a necessary condition that would complement resilience. We find that the Integral of the Time Absolute Error (ITAE) is an appropriate control engineering measure of resilience when it is applied to inventory levels and shipment rates. We use the ITAE to evaluate an often used benchmark model of make-to-stock supply chains consisting of three decision parameters. We use both linear and nonlinear forms of the model in our evaluation. Our findings suggest that optimum solutions for resilience do not yield a system that is robust to uncertainties in lead-time. Hence supply chains will experience drastic changes in their resilience performance when lead-time changes.     

Expert oriented approach for analyzing the blockchain adoption barriers in humanitarian supply chain

In digital era, blockchain technology has been known as the operational innovation that is rapidly joining the context of humanitarian supply chain and relief logistic. Hence, it has the potential to change the humanitarian context fundamentally, but there is still relatively little-published research aimed at improving the understanding of the different barriers of the blockchain adoption in humanitarian supply chain. The goal of this research is to present a comprehensive review of blockchain adoption barriers in the context of humanitarian supply chain management. An integrated approach using Fuzzy Delphi and Best-Worst method (BWM) has been used for analyzing the barriers. Based on the literature, 14 barriers of the blockchain adoption in humanitarian supply chain were identified. According to the Fuzzy Delphi result, 9 barriers were accepted. After that, the BWM calculated the importance of each barrier. The findings showed that regulatory uncertainty, lack of knowledge/employee training and high sustainability costs are the important barriers. This research provides useful guidelines for policy makers so that they can benefit from the results to optimize their solutions.     

Balancing resilience and efficiency in supply chains: Roles of disruptive technologies under Industry 4.0

In the Industry 4.0 era, disruptive technologies such as big data analytics, blockchain, Internet-of-Things, and additive manufacturing have become major forces driving supply chain transformation. Under such circumstances, particular attention should be attached to balancing resilience and efficiency of the supply chain, especially in the presence of more turbulence. In this study, we first summarize the conflicts between supply chain efficiency and supply chain resilience regarding practices and objectives. Then, we discuss the positive effects of disruptive technologies in improving resilience and efficiency. Afterwards, we propose a research agenda that covers both the influence mechanism and trade-off mechanism of these technologies in terms of resilience and efficiency.     

On the quantification of operational supply chain resilience

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.     

A Literature Review of Supply Chain Collaboration Mechanisms and Their Impact on Performance

This article contributes a comprehensive literature review fulfilling the identified need for a systematic empirical study examining how well the mechanisms of supply chain collaboration (SCC) correspond with performance. A review of articles during the period of 2000–2017 reveals fundamental trends in adopted methodologies, scopes of SCC, and areas of performance. However, limited research focused on qualitative and simulation-based research in specific industries and geographic sections was found. A need for additional research on horizontal and internal collaboration, elements of power dependence in the relationship with performance, and the effects of SCC mechanisms on environmental and social performance was identified. This article contributes a maturity model for SCC that provides guidance to engineering managers to develop a roadmap for effectively implementing and improving the SCC process. The article suggests that engineering managers may benefit from examining case studies and the systems dynamics tool to explore how different collaboration levels lead to various performance outcomes in future.