EconPapers    
Economics at your fingertips  
 

Flexible Supply Chain Design under Stochastic Catastrophic Risks

Yingjie Fan, Frank Schwartz and Stefan Voß

A chapter in Next Generation Supply Chains: Trends and Opportunities, 2014, pp 379-406 from Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management

Abstract: Real-world experiences prove that supply chains may suffer great losses or even complete break downs after catastrophic events. However, extra costs after great disasters are usually not incorporated in the supply chain costs in the existing literature. The aim of this study is to design a flexible cost efficient supply chain, which is able to keep stable supply even if great disasters happen. The supply chain is designed by initially determining the location of production facilities and choosing a transportation mode for each transportation link, and then estimating extra costs after a catastrophe occurs according to the type of the catastrophe and the structure and transportation modes of the supply chain. All variable costs, including supply chain catastrophe costs, operational costs, holding costs and transportation costs are included in the objective function of a two stage stochastic decision model. An algorithm is used to solve the model in order to get an optimal or close to optimal structure of the supply chain. Numerical results are presented. Based on computational experiments we can deduce that postponement is effective to deal with supply chain catastrophic events; slow transportation seems a viable option to leave more time for a supply chain for the adjustment of production planning after catastrophes.

Keywords: supply chain risk management; slow transportation; postponement; catastrophe (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/209216/1/hicl-2014-18-379.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:hiclch:209216

Access Statistics for this chapter

More chapters in Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL) from Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2022-10-01
Handle: RePEc:zbw:hiclch:209216