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Supply chain disruption can occur for a variety of reasons, including naturaldisasters or market dynamics for which resilient strategies should be designed.If the disruption is profound and with dire consequences for the economy, itcalls for the regulator's intervention to minimize the impact for thebetterment of the society. This paper considers a shipping company with limitedcapacity which will ship a group of products with heterogeneous transportationand production costs and prices, and investigates the minimum quota regulationon transportation amounts stipulated by the government. An interesting examplecan happen in North American rail transportation market, where the railcapacity is used for a variety of products and commodities such as oil andgrains. Similarly, in Europe supply chain of grains produced in Ukraine isdisrupted by the Ukraine war and the blockade of sea transportation routes,which puts pressure on rail transportation capacity of Ukraine and itsneighboring countries to the west that needs to be shared for shipping avariety of products including grains, military, and humanitarian supplies. Suchsituations require a proper execution of government intervention for effectivemanagement of the limited transportation capacity to avoid the rippling effectsthroughout the economy. We propose mathematical models and solutions for themarket players and the government in a Canadian case study. Subsequently, theconditions that justify government intervention are identified, and analgorithm to obtain the optimum minimum quotas is presented.

Increasing Supply Chain Resiliency Through Equilibrium Pricing and Stipulating Transportation Quota Regulation