A Simulation model to test the robustness of supply chains
Document typeResearch report
Rights accessOpen Access
Significant decrease in supply chain robustness can be observed in case of major supply chain disruptions. Recently, many companies experienced it with the Covid-19 pandemic, and it created big losses in companies’ revenues. One of the major reasons was these companies could not be supplied by some of their suppliers across countries. In this study, some solutions are investigated to keep high robustness in case of major disruptions by considering the supplier selection problem. The case of a food product supply across countries is simulated under uncertainty by developing a mathematical model. This model includes three steps which are i) plausible scenario creation, ii) candidate supply chain design and iii) supply chain robustness and costs evaluation. Supply chain designs are simulated by using plausible hazard scenarios and Covid-19 scenario. According to results of robustness and cost evaluations, the best supply chain design is selected. Two different supply chain designs show the best performance for the plausible hazard scenarios and for Covid-19 scenario, respectively. Results show that increasing warehouse capacity shows good performance for plausible hazard scenarios, but having multiple suppliers shows better performance for the Covid-19 scenario. Lastly, the combination of these two cases is simulated and possible strategies are discussed.
Working Paper del Departament d’Organització d’Empreses de la Universitat Politècnica de Catalunya.
CitationOrhon, M.; Sunyer, A.; Pinto, R. A Simulation model to test the robustness of supply chains. 2021.
Is part ofDITS (02/2021)