Title: A quantitative analysis of simultaneous supply and demand disruptions on a multi-echelon supply chain

Authors: Austin R. Kost; Hector A. Vergara; J. David Porter

Addresses: School of Mechanical, Industrial and Manufacturing Engineering, Oregon State University, 204 Rogers Hall, Corvallis, OR, 97331, USA ' School of Mechanical, Industrial and Manufacturing Engineering, Oregon State University, 204 Rogers Hall, Corvallis, OR, 97331, USA ' School of Mechanical, Industrial and Manufacturing Engineering, Oregon State University, 204 Rogers Hall, Corvallis, OR, 97331, USA

Abstract: This research aimed to uncover how different features of simultaneous supply and demand disruptions impact the performance of a multi-echelon supply chain. A discrete event simulation model was developed in ARENA and a full factorial designed experiment was conducted to understand how different disruption characteristics affect key supply chain performance metrics. Historical data was obtained for a four-echelon supply chain owned by a single company using the guaranteed service model inventory policy. Results showed that the severity of a demand disruption had considerable impact on performance during the disruption period. Furthermore, disruptions that occurred further upstream in the supply chain were more likely to translate into a decrease in overall performance in the post-disruption period when compared to disruptions located elsewhere. It was also found that additional inventory can be expected to accumulate at a disrupted node which, in turn, could translate into inventory reductions immediately upstream of the disrupted node.

Keywords: discrete event simulation; guaranteed service model; GSM; supply chain disruption; SCD; mitigation strategies; multi-echelon supply chain.

DOI: 10.1504/IJISE.2024.138023

International Journal of Industrial and Systems Engineering, 2024 Vol.46 No.4, pp.556 - 583

Received: 16 Jun 2022
Accepted: 04 Jul 2022
Published online: 17 Apr 2024 *

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