Disruption-driven supply chain (re)-planning and performance impact assessment with consideration of pro-active and recovery policies

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Disruption-driven supply chain (re)-planning and performance impact assessment with consideration of pro-active and recovery policies

Ivanov, Dmitry / Pavlov, Alexander / Dolgui, Alexandre / Pavlov, Dmitry / Sokolov, Boris

Highlights • We incorporate supply chain plan reconfiguration into the performance impact assessment. • We analyze seven proactive SC structures and compute recovery policies. • We consider duration of disruptions and the costs of recovery. • We analyze performance impact for both service level and costs.

Abstract In this study, an approach to re-planning the multi-stage supply chain (SC) subject to disruptions is developed. We analyze seven proactive SC structures, compute recovery policies to re-direct material flows in the case of two disruption scenarios, and assess the performance impact for both service level and costs with the help of a SC (re)planning model containing elements of system dynamics and linear programming. In the result, an explicit connection of performance impact assessment and SC plan reconfiguration issues with consideration of the duration of disruptions and the costs of recovery has been achieved.