Measuring supply chain resilience using a deterministic modeling approach

• Published in: Computers & industrial engineering 2014-08, Vol.74, p.11-25
• Main Authors: Soni, Umang, Jain, Vipul, Kumar, Sameer
• Format: Article
• Language: English
• Subjects: Computer simulation; Deterministic modeling; Disruption; Graph theory; Markets; Mathematical models; Organizations; Resilience; Risk; Risk management; Studies; Supply chain management; Supply chain resilience; Supply chains; Vulnerability
• ISSN: 0360-8352; 1879-0550
• DOI: 10.1016/j.cie.2014.04.019

•Identify major enablers of resilience and their interrelationships.•Quantify resilience by a single numerical index.•Function as a tool for managers to compare different supply chains for risk exposure.•Support supply chain decision-making by measuring and analyzing resilience.•Simplify the dynamic nature of environment for managing disruptions in a supply chain. To achieve a competitive edge in an uncertain business environment where change is imperative, one of the significant challenges for an organization is to mitigate risk by creating resilient supply chains. This research proposes a model using graph theory which holistically considers all the major enablers of resilience and their interrelationships for analysis using an Interpretive Structural Modeling approach. The uniqueness of this model lies in its ability to quantify resilience by a single numerical index. The quantification of resilience will help organizations assess the effectiveness of various risk mitigation strategies. This will provide tools for managers to compare different supply chains while offering a deeper knowledge of how supply chain characteristics increase or decrease resilience and consequently affect supply chain risk exposure. Thus, the research supports organizations in measuring and analyzing supply chain resilience and facilitates supply chain decision-making. The proposed method could simplify the dynamic nature of environment for managing disruptions in a supply chain. This novel approach for determining the supply chain resilience index (SCRI) advocates the consideration of resilience aspects in supply chain design, thus giving a competitive advantage to achieve market share even during a disruption.