Responsive and resilient supply chain network design under operational and disruption risks with delivery lead-time sensitive customers. (May 2017)

• Record Type: Journal Article
• Authors: Fattahi, Mohammad; Govindan, Kannan; Keyvanshokooh, Esmaeil
• Is Part Of: Transportation research. Volume 101(2017)
• Page Start: 176
• Page End: 200
• Publication Date: 2017-05
• Subjects: Supply chain network design -- Risk management -- Multi-stage stochastic programming -- Scenario reduction -- Mitigation and contingency strategies -- Disruption risk; Logistics -- Periodicals; Transportation -- Periodicals; 388.011
• DOI: 10.1016/j.tre.2017.02.004
• Languages: English
• ISSNs: 1366-5545

Abstract

Abstract: We address a multi-period supply chain (SC) network design where demands of customers depend on facilities serving them based on their delivery lead-times. Potential customer demands are stochastic, and facilities' capacity varies randomly because of possible disruptions. Accordingly, we develop a multi-stage stochastic program, and model disruptions' effect on facilities' capacity. The SC responsiveness risk is limited and, to obtain a resilient network, both mitigation and contingency strategies are exploited. Computational results on a real-life case study and randomly generated problem instances demonstrate the model's applicability, risk-measurement policies' performance, and the influence of mitigation and contingency strategies on SC's resiliency.