Simulating the impact of inventory on supply chain resilience with an algorithmic process based on the supply-side dynamic inoperability input–output model. Issue 4 (2nd October 2019)

• Record Type: Journal Article
• Authors: Jabilles, Eula Margareth Y.; Cuizon, Justin Marie T.; Tapales, Precious Marie A.; Urbano, Renelyn L.; Ocampo, Lanndon A.; Kilongkilong, Dennis Anthony A.
• Is Part Of: International journal of management science and engineering management. Volume 14:Issue 4(2019)
• Page Start: 253
• Page End: 263
• Publication Date: 2019-10-02
• Subjects: complex system modeling -- systemic risk -- dynamic inoperability input–output model -- supply chain resilience -- inventory; Management science -- Periodicals; Engineering -- Management -- Periodicals; Engineering -- Management; Management science; Periodicals; 658.005
• DOI: 10.1080/17509653.2018.1555693
• Languages: English
• ISSNs: 1750-9661

Abstract

ABSTRACT: The interdependent nature of highly interconnected systems, such as supply chains, renders them incapable of quickly resuming operation following a disruptive event. In the context of supply chains, previous works have demonstrated the efficacy of inventory as a mitigation strategy to delay the impact of disruptive events. However, current methods tend to focus only on a demand-driven approach, which may be inappropriate for some systems where a value-added price perturbation represents an impact. Thus, this paper offers a methodology for understanding the role of inventory in the supply-side dynamic inoperability input–output model (DIIM). To demonstrate the applicability of the proposed model, an illustrative example is presented using data from the 2012 Philippines Input–Output (I-O) Table in five different scenarios. Given a predefined planning horizon, the results of this work can serve as guidelines for decision-makers for the provision of inventory that will keep the overall inoperability of an entire supply chain at a minimum.