A supply chain network reconfiguration under partial disruptions with capacity recovery

Varthini Rajagopal, Shanmugam Prasanna Venkatesan, Sushant Varghese and Tanumoy Kolay

International Journal of Logistics Systems and Management, 2022, vol. 42, issue 4, 535-575

Abstract: This paper presents a multi-objective supply chain network (SCN) reconfiguration model under disruptions considering cost minimisation and resilience maximisation objectives. Potential disruption scenarios are modelled considering the decision maker's (DM) risk-attitude. At first, the single-objective cost minimisation problem is formulated and extended as a multi-objective problem incorporating responsiveness as another objective. A set of Pareto solutions is obtained using the augmented ε-constraint (AUGMECON) method. The major inferences include: 1) the structural decisions are highly influenced by the SCN facility's failure probability and the DM's risk-attitude; 2) the cost-effectiveness is achieved by incorporating a portfolio of reactive strategies during the post disruption periods, whereas redundancy at design phase is preferred to maximise the resilience; 3) a rapid and radical albeit costly recovery option is favoured to maximise resilience while a slow and incremental recovery is preferred to minimise the cost.

Keywords: supply chain network reconfiguration; SCNR; disruption risk; risk-attitude; multi-objective; resilience; recovery. (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijlsma:v:42:y:2022:i:4:p:535-575

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