The Ripple effect in supply chains: trade-off ‘efficiency-flexibility-resilience’ in disruption management

This study aims at presenting the Ripple effect in supply chains. It develops different dimensions of the Ripple effect and summarises recent developments in the field of supply chain (SC) disruption management from a multi-disciplinary perspective. It structures and classifies existing research streams and applications areas of different quantitative methods to the Ripple effect analysis as well as identifying gaps in current research and delineating future research avenues. The analysis shows that different frameworks already exist implicitly for tackling the Ripple effect in the SC dynamics, control and disruption management domain. However, quantitative analysis tools are still rarely applied in praxis. We conclude that the Ripple effect can be the phenomenon that is able to consolidate research in SC disruption management and recovery similar to the bullwhip effect regarding demand and lead time fluctuations. This may build the agenda for future research on SC dynamics, control, continuity and disruption management, making supply chains more robust, adaptable and profitable.

[1]  Wei Chen,et al.  Design under uncertainty , 2012 .

[2]  Nilay Shah,et al.  Logistical network design with robustness and complexity considerations , 2007 .

[3]  Andreas Otto,et al.  Supply Chain Event Management - An exploration in three views , 2003 .

[4]  Goker Aydin,et al.  Decentralized Supply Risk Management , 2010 .

[5]  Young Won Park,et al.  Supply chain lessons from the catastrophic natural disaster in Japan , 2013 .

[6]  Mohammad J. Tarokh,et al.  Preventing failure in IT-enabled systems for supply chain management , 2009 .

[7]  Dmitry Ivanov,et al.  An adaptive framework for aligning (re)planning decisions on supply chain strategy, design, tactics, and operations , 2010 .

[8]  Christos T. Maravelias,et al.  Integration of control theory and scheduling methods for supply chain management , 2013, Comput. Chem. Eng..

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

[10]  Christopher S. Tang,et al.  Researchers' Perspectives on Supply Chain Risk Management , 2011 .

[11]  Alexandre Dolgui,et al.  Supply planning under uncertainties in MRP environments: A state of the art , 2007, Annu. Rev. Control..

[12]  Janis Grabis,et al.  Configurable supply chain: framework, methodology and application , 2009, Int. J. Manuf. Technol. Manag..

[13]  T KiranoudisChris,et al.  Dynamic modeling and control of supply chain systems , 2008 .

[14]  Hartmut Stadtler,et al.  Supply Chain Management and Advanced Planning , 2000 .

[15]  D. Waters Supply Chain Risk Management: Vulnerability and Resilience in Logistics , 2007 .

[16]  Sue Black,et al.  Computing ripple effect for software maintenance , 2001, J. Softw. Maintenance Res. Pract..

[17]  Pei Yu,et al.  Stability of dynamical systems , 2007 .

[18]  Yasuhiko Takahara,et al.  General Systems Theory: Mathematical Foundations , 1975 .

[19]  Sang-Hyun Kim,et al.  Guilt by Association : Strategic Failure Prevention and Recovery Capacity Investments , 2011 .

[20]  Nezih Altay,et al.  OR/MS research in disaster operations management , 2006, Eur. J. Oper. Res..

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

[22]  Maria Adler,et al.  Stable Adaptive Systems , 2016 .

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

[24]  Peter Marsh,et al.  Japan crisis impact on the supply chain: Global industries consider their options , 2011 .

[25]  Ruhul A. Sarker,et al.  A recovery model for a two-echelon serial supply chain with consideration of transportation disruption , 2013, Comput. Ind. Eng..

[26]  Vineet Padmanabhan,et al.  Comments on "Information Distortion in a Supply Chain: The Bullwhip Effect" , 1997, Manag. Sci..

[27]  Z. Shen,et al.  Product substitution and dual sourcing under random supply failures , 2011 .

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

[29]  Lawrence V. Snyder,et al.  Facility location under uncertainty: a review , 2006 .

[30]  Mark S. Daskin,et al.  Facility Location Decisions with Random Disruptions and Imperfect Estimation , 2013, Manuf. Serv. Oper. Manag..

[31]  Boris V. Sokolov,et al.  A multi-structural framework for adaptive supply chain planning and operations control with structure dynamics considerations , 2010, Eur. J. Oper. Res..

[32]  Lian Qi,et al.  A continuous-review inventory model with random disruptions at the primary supplier , 2013, Eur. J. Oper. Res..

[33]  Ilhyung Kim,et al.  Managing the order pipeline to reduce supply chain volatility , 2010, Eur. J. Oper. Res..

[34]  David Simchi-Levi,et al.  Understanding the Performance of the Long Chain and Sparse Designs in Process Flexibility , 2012, Oper. Res..

[35]  U. Juettner,et al.  Supply chain resilience in the global financial crisis: an empirical study , 2011 .

[36]  Kaitlin S. Dunn,et al.  An Empirically Derived Framework of Global Supply Resiliency , 2011 .

[37]  Alexandre Dolgui,et al.  ON APPLICABILITY OF OPTIMAL CONTROL THEORY TO ADAPTIVE SUPPLY CHAIN PLANNING AND SCHEDULING , 2011 .

[38]  José Miguel Laínez,et al.  Capturing dynamics in integrated supply chain management , 2008, Comput. Chem. Eng..

[39]  Christos D. Tarantilis,et al.  Dynamic modeling and control of supply chain systems: A review , 2008, Comput. Oper. Res..

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

[41]  Mir Saman Pishvaee,et al.  Robust possibilistic programming for socially responsible supply chain network design: A new approach , 2012, Fuzzy Sets Syst..

[42]  Michel Bruneau,et al.  Framework for analytical quantification of disaster resilience , 2010 .

[43]  Y. Li,et al.  A framework for early warning and proactive control systems in food supply chain networks , 2010, Comput. Ind..

[44]  H. Gurnani,et al.  Managing Risk of Supply Disruptions: Incentives for Capacity Restoration , 2013 .

[45]  Yanfeng Ouyang,et al.  The bullwhip effect in supply chain networks , 2010, Eur. J. Oper. Res..

[46]  Dmitry Ivanov,et al.  An entropy-based approach to simultaneous analysis of supply chain structural complexity and adaptation potential , 2011 .

[47]  W. Zinn,et al.  Proactive planning for catastrophic events in supply chains , 2009 .

[48]  Carlos F. Daganzo,et al.  On the Stability of Supply Chains , 2002, Oper. Res..

[49]  Hau L. Lee,et al.  Information distortion in a supply chain: the bullwhip effect , 1997 .

[50]  Elizabeth Barber,et al.  Connectivity, Complexity, and Catastrophe in Large-Scale Systems , 1980 .

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

[52]  Dmitry Ivanov,et al.  Integrated dynamic scheduling of material flows and distributed information services in collaborative cyber-physical supply networks , 2014 .

[53]  Gerd J. Hahn,et al.  Value-Based Performance and Risk Management in Supply Chains: A Robust Optimization Approach , 2012 .

[54]  Seyed Hessameddin Zegordi,et al.  Developing a supply chain disruption analysis model: Application of colored Petri-nets , 2012, Expert Syst. Appl..

[55]  Partha Priya Datta,et al.  Information sharing and coordination mechanisms for managing uncertainty in supply chains: a simulation study , 2011 .

[56]  Amy Z. Zeng,et al.  Single or dual sourcing: decision-making in the presence of supply chain disruption risks , 2009 .

[57]  Léa A. Deleris,et al.  Quantitative Risk Assessment in Supply Chains: A Case Study Based on Engineering Risk Analysis Concepts , 2011 .

[58]  Dmitry Ivanov,et al.  Dual problem formulation and its application to optimal redesign of an integrated production–distribution network with structure dynamics and ripple effect considerations , 2013 .

[59]  L. LeeHau,et al.  Information Distortion in a Supply Chain , 1997 .

[60]  Panos Kouvelis,et al.  Handbook of Integrated Risk Management in Global Supply Chains , 2011 .

[61]  Andreas Otto Supply Chain Event Management: Three Perspectives , 2003 .

[62]  Mostafa Zandieh,et al.  A hybrid multi-stage predictive model for supply chain network collapse recovery analysis: a practical framework for effective supply chain network continuity management , 2011 .

[63]  K. B. Hendricks,et al.  The Effect of Operational Slack, Diversification, and Vertical Relatedness on the Stock Market Reaction to Supply Chain Disruptions , 2009 .

[64]  Boris V. Sokolov,et al.  Control and system-theoretic identification of the supply chain dynamics domain for planning, analysis and adaptation of performance under uncertainty , 2013, Eur. J. Oper. Res..

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

[66]  Michael J. Braunscheidel,et al.  The organizational antecedents of a firm’s supply chain agility for risk mitigation and response , 2009 .

[67]  Ada Alvarez,et al.  A bi-objective supply chain design problem with uncertainty , 2011 .

[68]  Marc Goetschalckx,et al.  A stochastic programming approach for supply chain network design under uncertainty , 2004, Eur. J. Oper. Res..

[69]  Kevin B. Hendricks,et al.  Association Between Supply Chain Glitches and Operating Performance , 2005, Manag. Sci..

[70]  Nitin Bakshi,et al.  Co-opetition and Investment for Supply-Chain Resilience , 2008 .

[71]  A. Nagurney,et al.  Modeling of Supply Chain Risk under Disruptions with Performance Measurement and Robustness Analysis , 2008 .

[72]  G. Zsidisin,et al.  Supply chain risk : a handbook of assessment, management, and performance , 2008 .

[73]  Arben Mullai,et al.  Risk Management System – A Conceptual Model , 2009 .

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

[75]  Boris V. Sokolov,et al.  Dynamic supply chain scheduling , 2012, J. Sched..

[76]  Amanda J. Schmitt,et al.  A Quantitative Analysis of Disruption Risk in a Multi-Echelon Supply Chain , 2011 .

[77]  Michael C. Georgiadis,et al.  Optimal design of supply chain networks under uncertain transient demand variations , 2011 .

[78]  Volodymyr Babich,et al.  Using a Dual-Sourcing Option in the Presence of Asymmetric Information about Supplier Reliability: Competition vs. Diversification , 2011, Manuf. Serv. Oper. Manag..

[79]  Boris V. Sokolov,et al.  Applicability of optimal control theory to adaptive supply chain planning and scheduling , 2012, Annu. Rev. Control..

[80]  Andrew Lim,et al.  Reliable logistics networks design with facility disruptions , 2011 .

[81]  S. Maswood Japan in Crisis , 2002 .

[82]  Reuven Cohen,et al.  Complex Networks: Structure, Robustness and Function , 2010 .

[83]  Jerry C. Wei,et al.  Responding to schedule changes in build‐to‐order supply chains , 2005 .

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

[85]  Volodymyr Babich,et al.  Competition and Diversification Effects in Supply Chains with Supplier Default Risk , 2006, Manuf. Serv. Oper. Manag..

[86]  S DaskinMark,et al.  Reliability Models for Facility Location , 2005 .

[87]  Karl G. Kempf,et al.  Model predictive control strategies for supply chain management in semiconductor manufacturing , 2007 .

[88]  Reza Zanjirani Farahani,et al.  Robust supply chain network design with service level against disruptions and demand uncertainties: A real-life case , 2013, Eur. J. Oper. Res..

[89]  Lawrence V. Snyder,et al.  Reliability Models for Facility Location: The Expected Failure Cost Case , 2005, Transp. Sci..

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

[91]  Martha C. Wilson,et al.  The impact of transportation disruptions on supply chain performance , 2007 .

[92]  George A. Zsidisin,et al.  Risk Management System – A Conceptual Model , 2009 .

[93]  Neale R. Smith,et al.  Supply chain dynamics: analysis of inventory vs. order oscillations trade-off , 2006 .

[94]  S. PishvaeeM.,et al.  Robust possibilistic programming for socially responsible supply chain network design , 2012 .

[95]  Frank Y. Chen,et al.  Quantifying the Bullwhip Effect in a Simple Supply Chain: The Impact of Forecasting, Lead Times, and Information.: The Impact of Forecasting, Lead Times, and Information. , 2000 .

[96]  S. Chopra,et al.  The importance of decoupling recurrent and disruption risks in a supply chain , 2007 .

[97]  Nicoleta S. Tipi,et al.  Modelling the dynamics of supply chains , 2000, Int. J. Syst. Sci..

[98]  David G. Groves,et al.  A General, Analytic Method for Generating Robust Strategies and Narrative Scenarios , 2006, Manag. Sci..

[99]  Ignacio E. Grossmann,et al.  Dynamic modeling and classical control theory for supply chain management , 2000 .

[100]  Y. Sheffi,et al.  A supply chain view of the resilient enterprise , 2005 .

[101]  Alain Martel,et al.  Modeling approaches for the design of resilient supply networks under disruptions , 2012 .

[102]  Yimin Wang,et al.  Mitigating Supply Risk: Dual Sourcing or Process Improvement? , 2010, Manuf. Serv. Oper. Manag..

[103]  O. Tang,et al.  Identifying risk issues and research advancements in supply chain risk management , 2011 .

[104]  Elise Miller-Hooks,et al.  Resilience: An Indicator of Recovery Capability in Intermodal Freight Transport , 2012, Transp. Sci..

[105]  Alexandre Dolgui,et al.  Supply Chain Engineering , 2010 .

[106]  Chelsea C. White,et al.  Managing Inventory in Global Supply Chains Facing Port-of-Entry Disruption Risks , 2013, Transp. Sci..

[107]  Stephen C. Graves,et al.  Process Flexibility in Supply Chains , 2003, Manag. Sci..

[108]  Iwan Vanany,et al.  Supply Chain Risk Management: Literature Review and Future Research , 2007, Int. J. Inf. Syst. Supply Chain Manag..

[109]  Alexandre Dolgui,et al.  A State of the Art on Supply Planning and Inventory Control under Lead Time Uncertainty , 2013 .

[110]  Sue Black Is ripple effect intuitive? A pilot study , 2006, Innovations in Systems and Software Engineering.