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Responsive and resilient supply chain network design under operational and disruption risks with delivery lead-time sensitive customers

Mohammad Fattahi, Kannan Govindan and Esmaeil Keyvanshokooh

Transportation Research Part E: Logistics and Transportation Review, 2017, vol. 101, issue C, 176-200

Abstract: We address a multi-period supply chain (SC) network design where demands of customers depend on facilities serving them based on their delivery lead-times. Potential customer demands are stochastic, and facilities’ capacity varies randomly because of possible disruptions. Accordingly, we develop a multi-stage stochastic program, and model disruptions’ effect on facilities’ capacity. The SC responsiveness risk is limited and, to obtain a resilient network, both mitigation and contingency strategies are exploited. Computational results on a real-life case study and randomly generated problem instances demonstrate the model’s applicability, risk-measurement policies’ performance, and the influence of mitigation and contingency strategies on SC’s resiliency.

Keywords: Supply chain network design; Risk management; Multi-stage stochastic programming; Scenario reduction; Mitigation and contingency strategies; Disruption risk (search for similar items in EconPapers)
Date: 2017
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