Contingent rerouting for enhancing supply chain resilience from supplier behavior perspective

Abstract

AbstractThis 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.