Performance evaluation of supply chain networks with assembly structure under system disruptions

Global supply chain networks (SCNs) with assembly structure are common in industry. System disruptions, due to various causes, can significantly influence the performance of the whole system. Differing from previous studies on supply disruptions, this paper aims to develop a discrete time model, which could describe the characteristics of network-wide system disruptions and provide rapid performance evaluation of SCNs with assembly structure. Considering system disruptions at any stage of the whole system, we develop new iterative methods to obtain the key performance measures of SCNs with assembly structure in both lost sales and backorder scenarios. The proposed methods are verified through a series of numerical experiments. Our results suggest that component suppliers with higher reliability in the downstream stages will deliver better system performance in both lost sales and backorder scenarios.