Title: A resilient supply portfolio considering political and disruption risks

Authors: Reza Hosnavi; Mohammad Ali Nekooie; Seyed Mohammad Khalili; Ahmad Tavakoli

Addresses: Department of Emergency Management, Malek Ashtar University of Technology (MUT), Tehran, Iran ' Department of Emergency Management, Malek Ashtar University of Technology (MUT), Tehran, Iran ' Department of Management, Ferdowsi University of Mashhad, Mashhad, Iran ' Department of Management, Ferdowsi University of Mashhad, Mashhad, Iran

Abstract: The need of accounting for resilience in global supply chains has been growing from practical and academic points of view. However, there is still the need for developing quantitative decision support models on this issue. In the present work, we propose a novel multi-objective mixed possibilistic, two-stage scenario-based stochastic programming model to handle supplier selection and order allocation problem in a global supply chain under operational and disruption risks. The model minimises cost and political risk, while, maximising resilience of the supply portfolio. Various risk mitigation approaches including: contracting with backup suppliers, fortification of suppliers and procurement of emergency inventory, are considered in the model. In addition, the proposed model determines recovery plans. Reservation level driven Tchebycheff procedure is incorporated in the solution procedure to find Pareto-optimal solutions. The validation of the model via computational experiments demonstrates the applicability of the proposed model and solution method in building a resilient supply portfolio under consideration of operational and disruption risks.

Keywords: supply chain risk/disruption management; resilient supply portfolio; mixed possibilistic two-stage stochastic programming.

DOI: 10.1504/IJISE.2019.097738

International Journal of Industrial and Systems Engineering, 2019 Vol.31 No.2, pp.209 - 249

Received: 21 Oct 2016
Accepted: 27 Feb 2017
Published online: 07 Feb 2019 *

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