Journal ArticleDOI
On the risk-averse optimization of service level in a supply chain under disruption risks
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The findings indicate that the best-case order fulfillment rate shows a higher service performance than the worst-case demand fulfillment rate and that worst- case service level is in opposition to cost.Abstract:
The worst-case optimization of service level in the presence of supply chain disruption risks is considered for the two different service levels measures: the expected worst-case demand fulfillment rate and the expected worst-case order fulfillment rate. The optimization problem is formulated as a joint selection of suppliers and stochastic scheduling of customer orders under random disruptions of supplies. The suppliers are located in different geographic regions and the supplies are subject to random local and regional disruptions. The obtained combinatorial stochastic optimization problem is formulated as a mixed integer program with conditional service-at-risk as a worst-case service level measure. The risk-averse solutions that optimize the worst-case performance of a supply chain are compared for the two service level measures. In addition, to demonstrate the impact on the cost in the process of optimizing the worst-case service level, a joint optimization of expected cost and conditional service-at...read more
Citations
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Viable supply chain model: integrating agility, resilience and sustainability perspectives-lessons from and thinking beyond the COVID-19 pandemic.
TL;DR: The VSC model can help firms in guiding their decisions on recovery and re-building of their SCs after global, long-term crises such as the COVID-19 pandemic and can be of value for decision-makers to design SCs that can react adaptively to both positive changes and negative changes.
Journal ArticleDOI
Ripple effect in the supply chain: an analysis and recent literature
TL;DR: The reasons and mitigation strategies for the ripple effect in the supply chain are observed and a ripple effect control framework that includes redundancy, flexibility and resilience analysis is presented.
Journal ArticleDOI
Literature review on disruption recovery in the supply chain
TL;DR: This study analyzes state-of-the-art research streams on supply chain design and planning with both disruptions and recovery considerations and classifies existing research streams and application areas of different quantitative methods subject to different disruption risks and recovery measures.
Journal ArticleDOI
Revealing interfaces of supply chain resilience and sustainability: a simulation study
TL;DR: The results indicate that sustainable single sourcing enhances the ripple effect; facility fortification at major employers in regions mitigates the rippleEffect and enhances sustainability; and a reduction in storage facilities in the supply chain downstream of a disruption-risky facility increases sustainability but causes the rippleeffect.
Journal ArticleDOI
A supervised machine learning approach to data-driven simulation of resilient supplier selection in digital manufacturing
TL;DR: The proposed data-driven decision-making model for resilient supplier selection can be further exploited for design of risk mitigation strategies in supply chain disruption management models, re-designing the supplier base or investing in most important and risky suppliers.
References
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Journal ArticleDOI
Optimization of conditional value-at-risk
R. T. Rockafellar,S Uryasev +1 more
TL;DR: In this paper, a new approach to optimize or hedging a portfolio of financial instruments to reduce risk is presented and tested on applications, which focuses on minimizing Conditional Value-at-Risk (CVaR) rather than minimizing Value at Risk (VaR), but portfolios with low CVaR necessarily have low VaR as well.
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A critical review on supply chain risk – Definition, measure and modeling ☆
TL;DR: In this paper, existing approaches for quantitative supply chain risk management are reviewed by setting the focus on the definition of supply chain risks and related concepts, and a review of these approaches is presented.
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The Ripple effect in supply chains: trade-off 'efficiency-flexibility-resilience' in disruption management
TL;DR: In this article, the authors present the Ripple effect in supply chains and summarise recent developments in the field of supply chain (SC) disruption management from a multi-disciplinary perspective, identifying gaps in current research and delineating future research avenues.
Journal ArticleDOI
Single or dual sourcing: decision-making in the presence of supply chain disruption risks
TL;DR: In this paper, the impact of supply disruption risks on the choice between the famous single and dual sourcing methods in a two-stage supply chain with a non-stationary and price-sensitive demand is evaluated.
Journal ArticleDOI
Supply-chain uncertainty: a review and theoretical foundation for future research
TL;DR: In this paper, a broad view of supply chain uncertainty (incorporating supply chain risk) is presented, and a theoretical foundation for future research is developed by identifying a comprehensive list of fourteen sources of uncertainty, including those that have received much research attention, such as the bullwhip effect, and those more recently described such as parallel interaction.