A quantitative analysis of simultaneous supply and demand disruptions on a multi-echelon supply chain
Austin R. Kost,
Hector A. Vergara and
J. David Porter
International Journal of Industrial and Systems Engineering, 2024, vol. 46, issue 4, 556-583
Abstract:
This research aimed to uncover how different features of simultaneous supply and demand disruptions impact the performance of a multi-echelon supply chain. A discrete event simulation model was developed in ARENA and a full factorial designed experiment was conducted to understand how different disruption characteristics affect key supply chain performance metrics. Historical data was obtained for a four-echelon supply chain owned by a single company using the guaranteed service model inventory policy. Results showed that the severity of a demand disruption had considerable impact on performance during the disruption period. Furthermore, disruptions that occurred further upstream in the supply chain were more likely to translate into a decrease in overall performance in the post-disruption period when compared to disruptions located elsewhere. It was also found that additional inventory can be expected to accumulate at a disrupted node which, in turn, could translate into inventory reductions immediately upstream of the disrupted node.
Keywords: discrete event simulation; guaranteed service model; GSM; supply chain disruption; SCD; mitigation strategies; multi-echelon supply chain. (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijisen:v:46:y:2024:i:4:p:556-583
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