Complex network theory-based approach for designing resilient supply chain networks

Abstract

Globalisation within supply chains opens many doors for new opportunities but can also result in highly complex, unstable and fragile supply chains. Due to importance of complex network theories in supply chain, the authors examine the advances of complex network theories to understand the properties of these networks in underlying efficient supply chains. In this paper, the resilience metrics for supply chain are developed based on complex network theory. Agent-based simulation approach is used to show the applicability of various complex network models to design the resilient supply chain networks. Simulation results shows that supply chain network can be designed based on complex network theory especially as a scale-free network. It was also concluded that scale-free models have some limitations and cannot accurately represent an efficient and resilient supply chain. Therefore, it is suggested that a scale-free model should be developed that can represent more robust and resilient supply chain networks.