Designing a construction supply chain model using backup supplier aiming at optimizing resiliency against disruption

Abstract

Resilience is a topic that has recently emerged concerning the basics of the construction project supply chain and we can consider it as a response to disruption in the supply chain of the project. Disruption also is an unavoidable reality in today’s complex and dynamic construction supply chain, the occurrence of which can cause irretrievable damages to the system, such as financial losses. Successful companies seek to minimize disruption and maintain adequate supply chain performance before disruption occurs, rather than looking for costly and challenging post-disruption solutions. This paper covers this gap by proposing a scenario-based mixed integer-programming model aiming to minimize logistics costs and delays, while scheduling projects to address selecting the appropriate supplier at risk of disruption. So far, this quantitative view was not presented in discussions about disruptions in the project supply chain, therefore different scenarios are applied in the process to validate the model. To improve its resilience level, this model benefits from back-up suppliers’ strategy. This study focuses on providing the required materials for the project site in an emergency without incurring additional costs using a back-up supplier. Results reveal the model’s suitability in confronting the unavailability of a supplier due to disruption.