Supply chain redesign for resilience using simulation

  • Authors:
  • Helena Carvalho;Ana P. Barroso;Virgínia H. Machado;Susana Azevedo;V. Cruz-Machado

  • Affiliations:
  • UNIDEMI, Departamento de Engenharia Mecínica e Industrial, Faculdade de Ciências e Tecnologia da Universidade Nova de Lisboa, 2829-516 Caparica, Portugal;UNIDEMI, Departamento de Engenharia Mecínica e Industrial, Faculdade de Ciências e Tecnologia da Universidade Nova de Lisboa, 2829-516 Caparica, Portugal;UNIDEMI, Departamento de Engenharia Mecínica e Industrial, Faculdade de Ciências e Tecnologia da Universidade Nova de Lisboa, 2829-516 Caparica, Portugal;NECE Research Unit, Department of Management and Economics, University of Beira Interior, Pólo IV - Edifício Ernesto Cruz, 6200-209 Covilhã, Portugal;UNIDEMI, Departamento de Engenharia Mecínica e Industrial, Faculdade de Ciências e Tecnologia da Universidade Nova de Lisboa, 2829-516 Caparica, Portugal

  • Venue:
  • Computers and Industrial Engineering
  • Year:
  • 2012

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Abstract

Supply chains are facing numerous changes that are contributing to increasing their complexity and vulnerability to disturbances, therefore, to survive, supply chains must be resilient. The paper presents a supply chain simulation study for a real case concerned with the Portuguese automotive supply chain. The subset automotive supply chain involved in the case study is a three-echelon supply chain, composed by one automaker, two 1st-tier suppliers, two 2nd-tier suppliers, and one outsource entity. The purpose of the study is to evaluate alternative supply chain scenarios for improving supply chain resilience to a disturbance and understanding how mitigation strategies affect each supply chain entity performance. Two strategies widely used to mitigate disturbance negative effects on supply chains were considered and six scenarios were designed. The scenarios differ in terms of presence or absence of a disturbance in one hand and presence or absence of a mitigation strategy in other hand. To evaluate the scenarios designed, two performance measures were defined per supply chain entity, Lead Time Ratio and Total Cost.