|Title:||What it takes to design a supply chain resilient to major disruptions and recurrent interruptions|
|Keywords:||Supply Chain Network Design; Risk; Disruption; Interruption; Uncertainty; Supply and Demand Variation, Reliability; Robust Optimization|
|Abstract:||Global supply chains are more than ever under threat of major disruptions caused by devastating natural and man-made disasters as well as recurrent interruptions caused by variations in supply and demand. This paper presents an optimization model for designing a supply chain resilient to (1) supply/demand interruptions and (2) facility disruptions whose probability of occurrence and magnitude of impact can be mitigated through fortification investments. Numerical results and managerial insights obtained from model implementation are presented. Our analysis focuses on how supply chain design decisions are influenced by facility fortification strategies, a decision maker’s conservatism degree, demand fluctuations, supply capacity variations, and budgetary constraints. Finally, examining the performance of the proposed model using a Monte Carlo simulation method provides additional insights and practical implications.|
|Type of Work:||Working Paper|
|Appears in Collections:||ITLS Working Papers 2016|
|ITLS-WP-16-13.pdf||1.23 MB||Adobe PDF|
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