Abstract

Resilient supply chains are designed and operated to deal with disruptive events in an efficient manner. In ICT product supply chains, disruptions are often observed as vulnerabilities discovered in components used in the products. The vulnerabilities can be associated with the components themselves as well as with suppliers, and they can be averted by patching and supply chain reconfiguration. The paper elaborates a simulation model for analyzing relationships between the cost of treating the vulnerabilities and the supply chain configuration. We show that flexible supply chain configurations have the lowest cost and are the most resilient to vulnerabilities. The vulnerabilities associated with suppliers, for example, due to the loss of their trustworthiness, cause more-significant fluctuations in supply chain performance than the vulnerabilities associated with individual components. The monitoring cost have a significant impact on the selection of the most-resilient configuration.

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