A network-of-networks adaptation for cross-industry manufacturing repurposing

Abstract

During a crisis, manufacturing processes in supply chains of different industries may network with each other as an adaptation response. We propose and examine a “network-of-networks” mechanism of such a cross-industry adaptation to learn about the value of reducing uncertainty through collaborative crisis preparedness and response during the COVID-19 pandemic. Our study allows revelation of the underlying trade-offs between the manufacturing capacity conversion time and effort required to adapt and the gains from collaborative preparedness to uncertainty. Through a real-life data-based analysis with the help of mathematical optimization, we connect the networks-of-networks coordination design and the outcomes of scenario modeling demonstrating a superiority of the coordinated capacity repurposing when compared to ad-hoc adaptation. We conclude that an appropriate collaboration of governmental agencies, healthcare, and industry is crucial for a prompt capacity conversion to healthcare production in a pandemic. Concrete implementation ways are visibility, healthcare inventory monitoring, technology backup plans, and repurposing contingency plans at the preparedness stage. At the response stage, a correct adaptation start time determines success. The results obtained can be instructive to develop technological and managerial plans for a cross-industry adaptation. The proposed “network-of-networks” perspective contributes to theory of supply chain viability and adaptation under disruptions using intertwined supply networks.