Abstract
Due to the high risk in the business environment, supply chains must adopt a tailored mechanism to deal with disruptions. This research proposes a multi-objective formulation to design a robust and resilient forward supply chain under multiple disruptions and uncertainty. The mentioned objective functions include minimizing the total cost, environmental impacts, and the network non-resiliency associated with the supply chain simultaneously countered using an augmented ε-constraint method. A Mulvey robust optimization approach is also utilized to deal with uncertainty. Ultimately, the developed model is validated based on three datasets associated with a case study of the steel industry. The results indicate that preventive and mitigation resilience strategies have significantly promoted the supply chain’s capabilities to deal with disruptions. Controlling network resiliency via non-resiliency measures has also created a risk-aware and robust structure in the incidence of disturbances. Numerical results reveal that multiple sourcing, lateral transshipment, and fortification of facilities will lead to the greatest cost-efficiency in the case study. Observations also indicate that the fortified supply chain will be highly economically viable in the long run due to the reduction of costs resulting from lost sales, unnecessary inventory holding, and the company’s credit risk.
Highlights
A supply chain (SC) is a network comprising various facilities located and organized for significant purposes
Unit environmental impact associated with opening production center m (Pt) Unit environmental impact associated with opening warehouse w (Pt) Unit environmental impact associated with opening distribution center d(Pt) Unit environmental impact of manufacturing p-type product by production technology v at production center m in period t in the incidence of disturbance o (Pt/Ton) Unit environmental impact of distributing of p-type product by distribution center d to products first market c by route r in period t in the incidence of disturbance o (Pt/Ton.Km) Unit environmental impact of shipping i-type raw material from the primary supplier s to warehouse w by route r in period t in the incidence of disturbance o (Pt/Ton.Km)
Pre-positioned EI level of i-type raw material of p-type product at the primary supplier s in period t in the incidence of disturbance o (Ton) Pre-positioned EI level of p-type product at the production center m in period t in the incidence of disturbance o (Ton) Quantity of i-type raw material of p-type product purchased by warehouse w from the EI of primary supplier s in period t in the incidence of disturbance o (Ton) Quantity of p-type product purchased by distribution center d from the EI of production center m in period t in the incidence of disturbance o (Ton)
Summary
A supply chain (SC) is a network comprising various facilities located and organized for significant purposes. Zhalechian et al [49] considered SC threats to be disruptive and operational in resilient SC network design (RESCND) problems. The SC network design (SCND) problem must be implemented such that it can resiliently and responsibly withstand all operational risks and disturbances, including long and short-term fluctuations and hazards. SC resilience (SCRES) consists of some mitigation and preventive strategies to counter disruptions that develop a resilient system in the face of disturbances and operational risks. Mitigation or contingency measures are executed after disruption to pay for damages and restore desired performance or a better state [34, 35] Preventive measures are those strategies considered by organizations before the incidence of disruption to prepare for avoiding losses and failures [4].
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