Modeling approaches for the design of resilient supply networks under disruptions

This paper studies various modeling approaches to design resilient supply networks (SN) for the location–transportation problem under uncertainty. The future environment of the SN is shaped by random demands, and by disruptions perturbing depots capacity and ship-to-point demand processes. The paper proposes several stochastic programming models incorporating alternative resilience seeking formulations. A generic approach to model SN disruptions, and to elaborate and evaluate SN designs is also proposed. Experiments are made to compare the SN design models formulated, and recommendations are drawn on the approach to use to design effective and robust supply networks.

[1]  Celso C. Ribeiro,et al.  Tutorials in Operations Research , 2012, Int. Trans. Oper. Res..

[2]  Mark S. Daskin,et al.  Planning for Disruptions in Supply Chain Networks , 2006 .

[3]  Stephan M. Wagner,et al.  Assessing the vulnerability of supply chains using graph theory , 2010 .

[4]  Philip J. Schneider,et al.  Natural Hazards—The Multihazard Approach , 2006 .

[5]  Yossi Sheffi,et al.  The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage , 2005 .

[6]  Stephan M. Wagner,et al.  DO PERCEPTIONS BECOME REALITY? THE MODERATING ROLE OF SUPPLY CHAIN RESILIENCY ON DISRUPTION OCCURRENCE , 2010 .

[7]  Richard L. Church,et al.  The maximal covering location problem , 1974 .

[8]  H. Kunreuther,et al.  Catastrophe modeling : a new approach to managing risk , 2013 .

[9]  Christopher S. Tang.  Perspectives in supply chain risk management , 2006 .

[10]  Keely L. Croxton,et al.  ENSURING SUPPLY CHAIN RESILIENCE: DEVELOPMENT OF A CONCEPTUAL FRAMEWORK , 2010 .

[11]  A. Shapiro.  Monte Carlo Sampling Methods , 2003 .

[12]  F. Caniato,et al.  BUILDING A SECURE AND RESILIENT SUPPLY NETWORK. , 2003 .

[13]  Alain Martel,et al.  The design of robust value-creating supply chain networks , 2010, Eur. J. Oper. Res..

[14]  E. Banks.  Catastrophic Risk: Analysis and Management , 2005 .

[15]  Christopher S. Tang,et al.  The power of flexibility for mitigating supply chain risks , 2008 .

[16]  A. Oke,et al.  Managing disruptions in supply chains: A case study of a retail supply chain , 2009 .

[17]  Richard L. Church,et al.  A Median Location Model with Nonclosest Facility Service , 1985, Transp. Sci..

[18]  J. Mentzer,et al.  Global supply chain risk management strategies , 2008 .

[19]  Yacov Y. Haimes,et al.  Risk modeling, assessment, and management , 1998 .

[20]  Hau L. Lee.  The triple-A supply chain. , 2004, Harvard business review.

[21]  Stephan M. Wagner,et al.  Understanding Responses to Supply Chain Disruptions: Insights from Information Processing and Resource Dependence Perspectives , 2011 .

[22]  T. Santoso.  A stochastic programming approach for supply chain network design under uncertainty , 2004 .

[23]  Alain Martel,et al.  The Impact of Operations Anticipations on the Quality of Supply Chain Network Design Models , 2010 .

[24]  Germaine H. Saad,et al.  Managing Disruption Risks in Supply Chains , 2005 .

[25]  M. Christopher,et al.  Building the Resilient Supply Chain , 2004 .

[26]  Alan T. Murray,et al.  Critical infrastructure : reliability and vulnerability , 2007 .

[27]  Brian Tomlin,et al.  On the Value of Mitigation and Contingency Strategies for Managing Supply Chain Disruption Risks , 2006, Manag. Sci..

[28]  Alain Martel,et al.  The Stochastic Multiperiod Location Transportation Problem , 2010, Transp. Sci..

[29]  Jennifer Blackhurst,et al.  The Severity of Supply Chain Disruptions: Design Characteristics and Mitigation Capabilities , 2007, Decis. Sci..

[30]  S. Chopra,et al.  Managing Risk To Avoid Supply-Chain Breakdown , 2004 .

[31]  Shabbir Ahmed,et al.  Supply chain design under uncertainty using sample average approximation and dual decomposition , 2009, Eur. J. Oper. Res..

[32]  Alexander Shapiro,et al.  Stochastic programming approach to optimization under uncertainty , 2007, Math. Program..

[33]  A Gerodimos,et al.  Robust Discrete Optimization and its Applications , 1996, J. Oper. Res. Soc..

[34]  Andreas Drexl,et al.  Facility location models for distribution system design , 2005, Eur. J. Oper. Res..

[35]  John R. Birge,et al.  Introduction to Stochastic Programming , 1997 .

[36]  Peter Schütz,et al.  The impact of flexibility on operational supply chain planning , 2011 .

[37]  Alain Martel,et al.  Taking market forces into account in the design of production-distribution networks: A positioning by anticipation approach , 2007 .