Evaluating the supply chain resilience strategies using discrete event simulation and hybrid multi-criteria decision-making (case study: natural stone industry)

Abstract

ABSTRACT One of the challenges that organisations face is the risk reduction through creating resilient supply chains. There are different strategies to reach the resiliency. In this paper, we analysed five important strategies: redundancy, backup supplier, reserved capacity, reserved inventory, and increasing work-shifts. These supply chain resilience (SCR) strategies are evaluated using discrete event simulation and hybrid multi-criteria decision-making methods. For this end, Bayesian best-worst method (BWM) and Vise Kriterijumska Optimizacija I Kompromisno Resenje (VIKOR) were used for weighting the SCR evaluation criteria and ranking the SCR strategies, respectively. Six discrete event simulation models were generated and run for evaluating each strategy in order to achieve quantitative criteria. On the other hand, the ideas of experts were used for weighting qualitative criteria and also ranking the alternatives. Results showed that the increasing work-shift strategy has the first rank and the reserved capacity strategy has the lowest rank.