Analysing the supply chain network reconfiguration under disruption risk environment

Varthini Rajagopal, Shanmugam Prasanna Venkatesan, Usha Mohan, Rishabh Gaur and Shubham Jha

International Journal of Industrial and Systems Engineering, 2022, vol. 41, issue 3, 295-335

Abstract: A p-robust supply chain network (SCN) reconfiguration model under disruptions in dynamic mid-term horizon considering decision-maker (DM)'s risk-attitude is presented. Reconfiguration of SCN within a time horizon by utilising excess resources of undisrupted facilities, outsourcing and capacity expansion is studied. At first, the single-objective cost minimisation problem is formulated and extended as a multi-objective problem incorporating responsiveness as another objective. Pareto solutions are obtained using augmented ε-constraint (AUGMECON) method. The major inferences include: 1) the cost minimisation model opens a fewer facility under nominal condition and prefers capacity expansion strategy under disruptions; 2) the inclusion of responsiveness objective results in opening more facilities with outsourcing as preferred reactive strategy; 3) DM's attitude significantly affect structural decisions but not the parametric decisions such as capacity expansion, material flow redirection, and outsourcing; 4) a neutral DM selects a dispersed and diversified portfolio of facilities, whereas averse DM opens backup facilities closer to critical facilities.

Keywords: dynamic configuration; disruption; reactive mitigation strategies; risk-attitude; responsiveness; AUGMECON. (search for similar items in EconPapers)
Date: 2022
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