TY - JOUR

T1 - Structural quantification of the ripple effect in the supply chain

AU - Sokolov, Boris

AU - Ivanov, Dmitry

AU - Dolgui, Alexandre

AU - Pavlov, Alexander

N1 - Publisher Copyright: © 2015 Taylor and Francis. Copyright: Copyright 2016 Elsevier B.V., All rights reserved.

PY - 2016/1/2

Y1 - 2016/1/2

N2 - In recent years, remarkable advancements have been achieved in quantitative analysis methods for supply chain design (SCD). Typically, cost or service level optimisation has been included in the objective functions. At the same time, supply chain managers face the ripple effect that arises from vulnerability, instability and disruptions in supply chains. This research aimed to quantify the ripple effect in the supply chain from the structural perspective. The research agenda of this study includes issues of integrating operability objectives as new key performance indicators, e.g. resilience, stability, robustness into SCD decisions. The research is based on a simultaneous consideration of both static structural properties of SCD and execution dynamics subject to uncertainty and disruptions. Due to high dimensionality of real SCD problems, such integration can hardly be implemented in only one model. In this study, an original two-model multi-criteria approach is proposed in order to assess the potential ability of an SCD to remain stable and resilient. This modelling approach is based on a combined application of a static and a dynamic model. A multi-criteria approach relies on the analytic hierarchy process method. The results of this research can be used as an additional quantitative analysis tool in order to select an SCD. An additional application of the developed method is that it can be used at the control stage in order to adapt supply chain execution subject to the achievement of desired economic performance.

AB - In recent years, remarkable advancements have been achieved in quantitative analysis methods for supply chain design (SCD). Typically, cost or service level optimisation has been included in the objective functions. At the same time, supply chain managers face the ripple effect that arises from vulnerability, instability and disruptions in supply chains. This research aimed to quantify the ripple effect in the supply chain from the structural perspective. The research agenda of this study includes issues of integrating operability objectives as new key performance indicators, e.g. resilience, stability, robustness into SCD decisions. The research is based on a simultaneous consideration of both static structural properties of SCD and execution dynamics subject to uncertainty and disruptions. Due to high dimensionality of real SCD problems, such integration can hardly be implemented in only one model. In this study, an original two-model multi-criteria approach is proposed in order to assess the potential ability of an SCD to remain stable and resilient. This modelling approach is based on a combined application of a static and a dynamic model. A multi-criteria approach relies on the analytic hierarchy process method. The results of this research can be used as an additional quantitative analysis tool in order to select an SCD. An additional application of the developed method is that it can be used at the control stage in order to adapt supply chain execution subject to the achievement of desired economic performance.

KW - analytic hierarchy process (AHP)

KW - complexity

KW - disruptions

KW - performance

KW - resilience

KW - ripple effect

KW - robustness

KW - supply chain design

KW - uncertainty

UR - http://www.scopus.com/inward/record.url?scp=84954372771&partnerID=8YFLogxK

U2 - 10.1080/00207543.2015.1055347

DO - 10.1080/00207543.2015.1055347

M3 - Article

AN - SCOPUS:84954372771

VL - 54

SP - 152

EP - 169

JO - International Journal of Production Research

JF - International Journal of Production Research

SN - 0020-7543

IS - 1

ER -