Supply chain redesign for resilience using simulation

► Alternative scenarios for improving supply chain resilience to a disturbance are designed. ► A case study and a simulation-based approach are used. ► Resilience strategies based on flexibility and redundancy are implemented and evaluated. ► When strategies are used the resilience of supply chain e...

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Bibliographic Details
Published in:Computers & industrial engineering 2012-02, Vol.62 (1), p.329-341
Main Authors: Carvalho, Helena, Barroso, Ana P., Machado, Virgínia H., Azevedo, Susana, Cruz-Machado, V.
Format: Article
Language:English
Subjects:
Automotive components
Automotive engineering
Automotive industry
Automotive supplies
Case study
Computer simulation
Disturbances
Operations research
Resilience
Simulation
Strategy
Studies
Suppliers
Supply chain design
Supply chain management
Supply chain resilience
Supply chains
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Summary:► Alternative scenarios for improving supply chain resilience to a disturbance are designed. ► A case study and a simulation-based approach are used. ► Resilience strategies based on flexibility and redundancy are implemented and evaluated. ► When strategies are used the resilience of supply chain entities is enhanced. ► Flexibility strategy makes the supply chain more resilient to the disturbance. Supply chains are facing numerous changes that are contributing to increasing their complexity and vulnerability to disturbances, therefore, to survive, supply chains must be resilient. The paper presents a supply chain simulation study for a real case concerned with the Portuguese automotive supply chain. The subset automotive supply chain involved in the case study is a three-echelon supply chain, composed by one automaker, two 1st-tier suppliers, two 2nd-tier suppliers, and one outsource entity. The purpose of the study is to evaluate alternative supply chain scenarios for improving supply chain resilience to a disturbance and understanding how mitigation strategies affect each supply chain entity performance. Two strategies widely used to mitigate disturbance negative effects on supply chains were considered and six scenarios were designed. The scenarios differ in terms of presence or absence of a disturbance in one hand and presence or absence of a mitigation strategy in other hand. To evaluate the scenarios designed, two performance measures were defined per supply chain entity, Lead Time Ratio and Total Cost.
ISSN:0360-8352
1879-0550
DOI:10.1016/j.cie.2011.10.003