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Integrated Optimization of Resilient Supply Chain Network Design and Operations Under Disruption Risks

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Supply Chain Risk Mitigation

Part of the book series: International Series in Operations Research & Management Science ((ISOR,volume 332))

Abstract

In recent years, supply chain disruptions caused by unexpected events have occurred more and more frequently, and these disruptions have been proven to have both short- and long-term negative impacts on supply chain operations and on corporate profitability. Thus, it is imperative to first analyze and understand the effects of these risks and then develop solutions to mitigate their impacts. In this study, an optimization approach is developed for integrated design and operations for resilient supply chain networks with disruption risk considerations. A mixed binary integer programming model is formulated for this purpose. Scenarios are used to describe disruption events of the facilities, and disruption events may take place at multiple facilities at the same time in a scenario. Uncertainties in supplies, demands, and prices are also considered. A region-wide dual-sourcing strategy, strategic emergency inventories, and alternative sourcing facilities are used in the supply chain network design stage to increase network resilience. The Sample Average Approximation method is used to solve the proposed model with disruption risk considerations. An illustrative example is used to demonstrate the validity of the model and sensitivity analysis results are reported to examine the effects of important parameters on the performance of the resulting resilient supply chain networks.

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Notes

  1. 1.

    https://www.sohu.com/a/376649906_466840

  2. 2.

    http://pic.dhe.ibm.com/infocenter/cosinfoc/v12r2/index.jsp.

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Acknowledgments

This work was partially supported by the Chinese National Natural Science Foundation (No. 70972100).

Author information

Authors and Affiliations

  1. School of Business Administration, Northeastern University, Shenyang, China

    Zhimin Guan

  2. School of Business Administration, Henan University of Economics and Law, Zhengzhou, China

    Jin Tao

  3. Carlos Alvarez College of Business, The University of Texas at San Antonio, San Antonio, TX, USA

    Minghe Sun

Authors
  1. Zhimin Guan
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  2. Jin Tao
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  3. Minghe Sun
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Corresponding author

Correspondence to Jin Tao .

Editor information

Editors and Affiliations

  1. Sophia University, Tokyo, Japan

    Yacob Khojasteh

  2. University of Queensland, Brisbane, QLD, Australia

    Henry Xu

  3. Toronto Metropolitan University, Toronto, ON, Canada

    Saeed Zolfaghari

Appendix

Appendix

Table 10 Supplier related parameters
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Table 11 Refinery related parameters
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Table 12 DC related parameters
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Table 13 Transportation mode related parameters
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Table 14 Strategic emergency inventory related parameters
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Table 15 Alternative sourcing facility related parameters
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Table 16 Distances between suppliers and refineries (km)
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Table 17 Distances between refineries and DCs (km)
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Table 18 Distances between DCs and customer demand areas (km)
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Guan, Z., Tao, J., Sun, M. (2022). Integrated Optimization of Resilient Supply Chain Network Design and Operations Under Disruption Risks. In: Khojasteh, Y., Xu, H., Zolfaghari, S. (eds) Supply Chain Risk Mitigation. International Series in Operations Research & Management Science, vol 332. Springer, Cham. https://doi.org/10.1007/978-3-031-09183-4_10

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