Abstract:
Modern supply chain is vastly expanded due to globalization and businesses evolving beyond countries and borders. Due to this nature of strong expansion in global supply chain, a failure in one supply chain component could cost millions of dollars. On the other hand, the global supply chain is more vulnerable to natural disasters more than ever with the infrastructural developments being carried out in the last few decades. A case of a small node failure could affect a large supply chain failure if the supplies are not managed properly during the time of failure. These few trends are the main reasons why many modern supply chain designers are focusing more and more on making the supply chain more resilient. More diverse supply chain networks are being designed around the world to ensure that the supply chain functioning is uninterrupted despite various nodes facing disruptions. Resilience in supply chain consists of two main strategies. Firstly, each and every organization in a global supply chain needs to minimize the risk of being disrupted by natural disasters and secondly, if an organization or a supply chain had to face the sequences of a disruption, it should have the ability to recover and get back to the normal working state as soon as possible with the smallest possible expense. Resilience Triangle is a concept that is used by many researchers as a way of understanding supply chain performance when faced with a disruption. Resilience triangle categorizes the performance of a supply chain into few phases and the supply chain analysts can consider each phase and the supply chain parameters related to each phase in order to uplift the performance. Basically this understanding helps the organization to ensure that they face the least damage if the organization is hit by a disruption and to recover in the quickest and best possible manner after facing the disruption. To analyze the potential risks to supply chain nodes, probability of failure can be utilized. The failure probability of each node can be connected to its geographical parameters when it comes to facing natural disasters. Another key supply chain decision in disruption management is the allocation of resilience budgets. This helps the system to accelerate the immediate response after facing a disruption. To analyze these parameters, building mathematical models is important. With the information gained from a mathematical analysis, the supply chain managers can directly make important supply chain decisions. Qualitative analyses too can only be evaluated if quantitative analyses are performed. Results from the quantitative analysis can be used to perform various further analyses such as comparing how the supply chain decisions change when resilience taken into consideration and not taken into consideration, how those parameters behave when the period of the disruption changes and the amount of budget
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