OR-methods for coping with the ripple effect in supply chains during COVID-19 pandemic: Managerial insights and research implications

Dmitry Ivanov and Alexandre Dolgui

International Journal of Production Economics, 2021, vol. 232, issue C

Abstract: The COVID-19 pandemic unveils unforeseen and unprecedented fragilities in supply chains (SC). A primary stressor of SCs and their subsequent shocks derives from disruption propagation (i.e., the ripple effect) through related networks. In this paper, we conceptualize current state and future research directions on the ripple effect for pandemic context. We scrutinize the existing OR (Operational Research) studies published in international journals dealing with disruption propagation and structural dynamics in SCs. Our study pursues two major contributions in relation to two research questions. First, we collate state-of-the-art research on disruption propagation in SCs and identify a methodical taxonomy along with theories displaying their value and applications for coping with the impacts of pandemics on SCs. Second, we reveal and systemize managerial insights from theory used for operating (adapting) amid a pandemic and during times of recovery, along with becoming more resistant to future pandemics. Streamlining the literature allowed us to reveal several new research tensions and novel categorizations and classifications. The outcomes of our study show that methodical contributions and the resulting managerial insights can be categorized into three levels, i.e., network, process, and control. Our analysis reveals that adaptation capabilities play the most crucial role in managing the SCs under pandemic disruptions. Our findings depict how the existing OR methods can help coping with the ripple effect at five pandemic stages (i.e., Anticipation; Early Detection; Containment; Control and Mitigation; and Elimination) following the WHO classification. The outcomes and findings of our study can be used by industry and researchers alike to progress the decision-support systems guiding SCs amid the COVID-19 pandemic and toward recovery. Suggestions for future research directions are offered and discussed.

Keywords: supply chain; ripple effect; COVID-19; Pandemic; Disruption propagation; Structural dynamics (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (65)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:232:y:2021:i:c:s0925527320302784

DOI: 10.1016/j.ijpe.2020.107921

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