Reliable supply chain network design model: Development and analysis

Abstract

Supply chain risks instigate disruptions and uncertainties in various supply chain operations thereby compromising its efficiency and effectiveness. Consequently, managing and mitigating the adverse effects of various exasperating supply chain risks have become a crucial decision-making activity in the current competitive industrial scenario. Enhancing the reliability and flexibility levels of supply chains is the most appropriate proactive strategy to mitigate the influence of these risk factors. However, the literature review conducted in the field of supply chain risk management indicates the unavailability of studies considering different aspects of supply chain reliability simultaneously that can yield formidable results in reality. To fill this gap, the present paper illustrates a framework for analyzing a supply chain considering different aspects of reliability such as the ability to deliver products in right quantity, at right time and with the right quality. Accordingly, a mixed integer programming model is developed for designing a four echelon serial supply chain network considering the above aspects of reliability. A case study is also presented to illustrate the application of this mathematical model for analyzing the reliability of existing supply chain processes, as well as utilizing it in supply chain network design