A Dynamic Analysis for Mitigating Disaster Effects in Closed Loop Supply Chains

Efthymios Katsoras and Patroklos Georgiadis
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Efthymios Katsoras: Industrial Management Division, Department of Mechanical Engineering, Aristotle University of Thessaloniki, P.O. Box 461, 541 24 Thessaloniki, Greece
Patroklos Georgiadis: Industrial Management Division, Department of Mechanical Engineering, Aristotle University of Thessaloniki, P.O. Box 461, 541 24 Thessaloniki, Greece

Sustainability, 2022, vol. 14, issue 9, 1-20

Abstract: The increased level of complexity in the case of Closed Loop Supply Chains (CLSCs) turns them into vulnerable systems under a disaster event. The latter calls for a methodological approach that allows a dynamic study under alternative policies in mitigating the disaster effects with a focus on creating sustainable CLSCs. For this reason, we provide a System Dynamics (SD)-based analysis for disaster events on the operation of CLSCs. By “disaster event”, we mean three different categories taking shape on the basis of duration. Furthermore, three different demand patterns emerging due to the disaster event are examined. We assume that the disaster event affects the manufacturer, and we examine the system response under different mitigation policies. For each demand pattern two different mitigation policies at the manufacturer level are examined by considering the total CLSC profit and demand backlog as measures of policy performance. For each combination, extensive simulation experimentation reveals sustainable policy recommendations under alternative settings regarding the reduction in the manufacturer’s production.

Keywords: sustainable supply chain; system dynamics; supply chain management; disaster management; closed-loop supply chain (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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