The physics of decision approach: a physics-based vision to manage supply chain resilience

Abstract

As instability becomes the norm, supply chain management is becoming increasingly complex and critical. As a result, supply chain managers must adapt to complex situations. Managing instability is a key expectation for these managers. One way to help them to manage this instability is to study resilience. Resilience is related to in the literature as the ability of a system to resist, adapt and recover from disruptions. Measuring and controlling supply chain resilience has therefore become a key issue for managers, especially in a context of instability. In 2013, the World Economic Forum [2013. Global Risks 2013. Davos, Switzerland: World Economic Forum] highlighted in its study, this priority for the surveyed companies to master this concept of resilience. To address this need, this paper presents an innovative approach to disruption and resilience management based on physics principles. It considers disruptions as forces that impact supply chain performance. These forces are created as a result of changes in the internal or external attributes of the supply chain. In this approach, supply chain performance is represented and visualised as a physical trajectory modelled in the framework of its performance indicators. Thus, disturbances are considered as forces that displace and deviate the supply chain's performance trajectory in its performance framework.