4.7 Article

On metrics for supply chain resilience

期刊

EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
卷 287, 期 1, 页码 145-158

出版社

ELSEVIER
DOI: 10.1016/j.ejor.2020.04.040

关键词

Supply chain management; Supply chain resilience metrics; Resilient strategy; Perishability; Stochastic programming

资金

  1. Department of Engineering Science, University of Auckland

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Resilience, defined as the ability to recover quickly and effectively from a disruption, is critically important for supply chains. Yet, it has not been quantified as frequently as supply chain robustness. In this paper we review the existing metrics for supply chain resilience and introduce a new metric, titled the net present value of the loss of profit (NPV-LP). We test these metrics on a small supply chain problem consisting of one supply and one demand node for a perishable good over a multi-period horizon with a possible port shut-down. We use a stochastic programming formulation of the problem. We show how the different metrics cause different investment decisions for the supply chain, and hence why it is important to carefully pick the correct metric when modeling supply chain resilience. (C) 2020 Elsevier B.V. All rights reserved.

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