Abstract
The world is facing economic, as well as social, crisis due to the COVID-19 pandemic. Implementing sustainable practices is one of the possible ways to address these issues. Adopting circular oriented techniques throughout the supply chain not only guarantees economic profitability, but also provides an edge to the organization in the market of fierce global competition. The concept of implementing circularity in the supply chain is novel and dynamic in nature, and it involves certain risk. In this study, a Bayesian Network methodology is adopted to analyze how the risk propagation takes place in a circular supply chain network of an automobile organization. The circular supply chain network consists of a group of manufacturers, retailers and recyclers, located in the Delhi–NCR region. Economic, environmental, social, technological, waste management, agile vulnerability, and risk of cannibalization are the major risk categories that were identified through an extensive literature review. Further, the impact of risk on the performance of the circular supply chain is analyzed by considering performance parameters such as lost sales, impact on supply chain revenue, and inventory holding cost. Risk exposure index is incorporated into the study to analyze the vulnerability of each node. The findings of the study reveal that the reverse side of the circular supply chain can be a source of risk propagation during the implementation of the circularity concept. This work is carried out under a single industry domain. In the future, risk propagation analysis can be examined in the supply chain of other sectors. The findings of the study can assist the supply chain managers and the risk experts to focus on the areas that are more vulnerable to risk.
Highlights
The world is moving towards digitization in this pandemic era [1]
This section is divided into three sub sections
The first sub section consists of the formulation and analysis of the Bayesian network (BN) model that was used to generate the risk profiles of various circular supply chain (CSC) partners
Summary
The world is moving towards digitization in this pandemic era [1]. Digitization is good in many senses, but whether it is sufficient to meet the needs of the customer is unknown [2]. This pandemic has majorly hit the logistics services all over the globe [3]. Logistic services are affected at a major global level, but at the domestic level too. There is an imbalance created between the supply and demand of resources [4] This imbalance has led to the evolvement of several risks occurring throughout the complete supply chain cycle [5]. Disruptions in the supply of the right quantity of raw material, at the right time, having the right quality may lead to a delay in production, which may affect the entire supply chain cycle [8]. The global crisis of COVID-19 has ravaged the world economy, and has created an atmosphere of fear and panic buying among customers [3]
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