Resilience to Supply Disruptions in a Non-Linear Two-Tier Supply Chain Model

Resilience to Supply Disruptions in a Non-Linear Two-Tier Supply Chain Model

Anthony S. White (Middlesex University, UK) and Michael Censlive (Middlesex University, UK)
DOI: 10.4018/IJISSCM.2020040101

Abstract

This article describes using a nonlinear APVIOBPCS to model the resilience response to the failure of one of the suppliers of a two-tier supply chain comprising a retailer and two suppliers. The second supplier then supplies all the goods required by the retailer. The model is chosen as the simplest case to examine resilience. Time to recover from disruption to ship all goods required by customers is slightly worse when the order rate when it reaches capacity limits but is less than the delay in the system from supplier to final shipment. Just over one weeks' maximum shipments stock at each tier guarantees shipments impervious to the collapse of one supplier, controller type has little effect on the performance of the model. These results agree with other researchers in general trend but not in detail. The response does not match the ‘Resilience Triangle.'
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Background

A resilient enterprise may be able to minimize the disruption and hence the amount of the required recovery. This elasticity is reflected in definitions of resilience for example:

The ability of a global supply chain to reorganize and deliver its core function continually, despite the impact of external and/or internal shocks to the system Bhatia et al. World Economic Forum (2013).

Two comprehensive reviews of the literature of SC resilience have been made by Hohenstein, et al. (2015) and Kamalahmadi and Parast (2016). Hohenstein et al. (2015) divided the reviewed papers into 4 main groups based on the concern with Readiness; Response; Recovery and Growth. They found the most important factor to emerge was that of SC flexibility and they report intra and inter SC collaboration high on the list of important objectives. They suggest using theoretical models to check the effectiveness of proposed solutions. Both groups of reviewers provide definitions of resilience that encompass that mentioned above. Kamalahmadi and Parast (2016) grouped publications into those concerned with network flexibility and those concerned with redundancy in the network, suggesting further research into how these concepts can be put into practice and the effects then measured. A systems view of what has been proposed is shown in Figure 1.

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