Simulation-Based Assessment of Supply Chain Resilience With Consideration of Recovery Strategies In the COVID-19 Pandemic Context
Document Type
Article
Publication Date
10-1-2021
School
Construction and Design
Abstract
In the wake of the COVID-19 pandemic, many firms lacked a strategy to cope with disruptions and maintain resiliency. In this study, we develop a measurement method to evaluate the impact of resilience strategies in a multi-stage supply chain (SC) in the presence of a pandemic. For the first time, we propose a method to deduce quantitative resilience assessment from simulation. We implement two resilience strategies, i.e., prepositioning extra-inventory and a backup supplier, and then we simulate its impact on SC resilience and financial performance. The simulation results indicate that the extra inventory leads to a higher resilience than a backup supplier but costs more for the given contextual setting. Finally, we examine the demand fulfillment and observe that the extra-inventory strategy allows for a higher service level, confirming our resilience simulations. We discuss the managerial implications of these findings on the descriptive and predictive analysis levels. Decision-makers can utilize our model and findings to develop a response plan in the occurrence of a pandemic or any long-duration high magnitude disruption. Also, scholars and managers can use our proposed method to measure SC resiliency from simulation in any disruption.
Publication Title
Computers and Industrial Engineering
Volume
160
Recommended Citation
Moosavi, J.,
Hosseini, S.
(2021). Simulation-Based Assessment of Supply Chain Resilience With Consideration of Recovery Strategies In the COVID-19 Pandemic Context. Computers and Industrial Engineering, 160.
Available at: https://aquila.usm.edu/fac_pubs/19207