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Contingent rerouting for enhancing supply chain resilience from supplier behavior perspective
Author(s) -
Wang Xinping,
Herty Michael,
Zhao Lindu
Publication year - 2016
Publication title -
international transactions in operational research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.032
H-Index - 52
eISSN - 1475-3995
pISSN - 0969-6016
DOI - 10.1111/itor.12151
Subject(s) - supply chain , production (economics) , resilience (materials science) , business , product (mathematics) , supply chain management , quality (philosophy) , supply chain risk management , computer science , industrial organization , service management , operations research , microeconomics , operations management , process management , economics , marketing , physics , geometry , mathematics , epistemology , engineering , thermodynamics , philosophy
This paper examines contingent rerouting strategy for enhancing supply chain resilience taking a supplier's point of view. We consider a supply chain with multiple suppliers at each stage and establish a mathematical model for product allocation behavior among different suppliers. The allocation model is based on each supplier's production capacity, product quality, production cost, as well as possible decision maker's preferences. As a performance measure for rerouting strategy, we use the total outflow of the supply chain. We propose an optimization model and its solution determines the rerouting strategy for product flow through the supply chain under disruptions. Numerical examples demonstrate the effect of the rerouting strategy and show the resilience of the supply chain.