IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v126y2010i1p130-143.html
   My bibliography  Save this article

Measuring the efficacy of inventory with a dynamic input-output model

Author

Listed:
  • Barker, Kash
  • Santos, Joost R.

Abstract

This paper extends the recently developed dynamic inoperability input-output model (DIIM) for assessing productivity degradations due to disasters. Inventory policies are formulated and incorporated within the DIIM to evaluate the impact of inventories on the resilience of disrupted interdependent systems. The Inventory DIIM can provide practical insights to preparedness decision making through explicit tradeoff analysis of multiple objectives, including inventory costs and economic loss reductions. The model is demonstrated in several illustrative examples to depict various nuances of inventory policies. The paper then culminates in a case study that utilizes input-output and inventory accounts from the Bureau of Economic Analysis.

Suggested Citation

  • Barker, Kash & Santos, Joost R., 2010. "Measuring the efficacy of inventory with a dynamic input-output model," International Journal of Production Economics, Elsevier, vol. 126(1), pages 130-143, July.
    • Handle: RePEc:eee:proeco:v:126:y:2010:i:1:p:130-143
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925-5273(09)00293-X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Theresa Brown & Walt Beyeler & Dianne Barton, 2004. "Assessing infrastructure interdependencies: the challenge of risk analysis for complex adaptive systems," International Journal of Critical Infrastructures, Inderscience Enterprises Ltd, vol. 1(1), pages 108-117.
    2. Albino, Vito & Izzo, Carmen & Kuhtz, Silvana, 2002. "Input-output models for the analysis of a local/global supply chain," International Journal of Production Economics, Elsevier, vol. 78(2), pages 119-131, July.
    3. Christopher W. Anderson & Joost R. Santos & Yacov Y. Haimes, 2007. "A Risk-based Input-Output Methodology for Measuring the Effects of the August 2003 Northeast Blackout," Economic Systems Research, Taylor & Francis Journals, vol. 19(2), pages 183-204.
    4. Joost Santos & Kash Barker & Paul Zelinke, 2008. "Sequential Decision-making in Interdependent Sectors with Multiobjective Inoperability Decision Trees: Application to Biofuel Subsidy Analysis," Economic Systems Research, Taylor & Francis Journals, vol. 20(1), pages 29-56.
    5. Clay Whybark, D., 2007. "Issues in managing disaster relief inventories," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 228-235, July.
    6. Lovell, Michael C., 1992. "Simulating a 100% just-in-time economy," International Journal of Production Economics, Elsevier, vol. 26(1-3), pages 71-78, February.
    7. Albino, V. & Garavelli, A. C., 1995. "A methodology for the vulnerability analysis of just-in-time production systems," International Journal of Production Economics, Elsevier, vol. 41(1-3), pages 71-80, October.
    8. Yossi Sheffi, 2005. "The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262693496, April.
    9. Yasuhide Okuyama & Geoffrey J. D. Hewings & Michael Sonis, 2004. "Measuring Economic Impacts of Disasters: Interregional Input-Output Analysis Using Sequential Interindustry Model," Advances in Spatial Science, in: Yasuhide Okuyama & Stephanie E. Chang (ed.), Modeling Spatial and Economic Impacts of Disasters, chapter 5, pages 77-101, Springer.
    10. E Romanoff & S H Levine, 1993. "Information, Interindustry Dynamics, and the Service Industries," Environment and Planning A, , vol. 25(3), pages 305-316, March.
    11. Henk Folmer & H. Landis Gabel & Shelby Gerking & Adam Rose (ed.), 2001. "Frontiers of Environmental Economics," Books, Edward Elgar Publishing, number 1929.
    12. Yasuhide Okuyama, 2007. "Economic Modeling for Disaster Impact Analysis: Past, Present, and Future," Economic Systems Research, Taylor & Francis Journals, vol. 19(2), pages 115-124.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kenneth G. Crowther & Yacov Y. Haimes, 2010. "Development of the multiregional inoperability input‐output model (MRIIM) for spatial explicitness in preparedness of interdependent regions," Systems Engineering, John Wiley & Sons, vol. 13(1), pages 28-46, March.
    2. Barker, Kash & Haimes, Yacov Y., 2009. "Assessing uncertainty in extreme events: Applications to risk-based decision making in interdependent infrastructure sectors," Reliability Engineering and System Safety, Elsevier, vol. 94(4), pages 819-829.
    3. Iman Rahimi Aloughareh & Mohsen Ghafory Ashtiany & Kiarash Nasserasadi, 2016. "An Integrated Methodology For Regional Macroeconomic Loss Estimation Of Earthquake: A Case Study Of Tehran," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(04), pages 1-24, September.
    4. Baghersad, Milad & Zobel, Christopher W., 2015. "Economic impact of production bottlenecks caused by disasters impacting interdependent industry sectors," International Journal of Production Economics, Elsevier, vol. 168(C), pages 71-80.
    5. Joanna Resurreccion & Joost Santos, 2013. "Uncertainty modeling of hurricane-based disruptions to interdependent economic and infrastructure systems," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 69(3), pages 1497-1518, December.
    6. Rui Huang & Arunima Malik & Manfred Lenzen & Yutong Jin & Yafei Wang & Futu Faturay & Zhiyi Zhu, 2022. "Supply-chain impacts of Sichuan earthquake: a case study using disaster input–output analysis," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 110(3), pages 2227-2248, February.
    7. Henriet, Fanny & Hallegatte, Stéphane & Tabourier, Lionel, 2012. "Firm-network characteristics and economic robustness to natural disasters," Journal of Economic Dynamics and Control, Elsevier, vol. 36(1), pages 150-167.
    8. Hallegatte, Stephane, 2012. "Modeling the roles of heterogeneity, substitution, and inventories in the assessment of natural disaster economic costs," Policy Research Working Paper Series 6047, The World Bank.
    9. Lorenzo Carrera & Gabriele Standardi & Francesco Bosello & Jaroslav Mysiak, 2014. "Assessing Direct and Indirect Economic Impacts of a Flood Event Through the Integration of Spatial and Computable General Equilibrium Modelling," Working Papers 2014.82, Fondazione Eni Enrico Mattei.
    10. Yacov Y. Haimes & Kenneth Crowther & Barry M. Horowitz, 2008. "Homeland security preparedness: Balancing protection with resilience in emergent systems," Systems Engineering, John Wiley & Sons, vol. 11(4), pages 287-308, December.
    11. Michiyuki Yagi & Shigemi Kagawa & Shunsuke Managi & Hidemichi Fujii & Dabo Guan, 2020. "Supply Constraint from Earthquakes in Japan in Input–Output Analysis," Risk Analysis, John Wiley & Sons, vol. 40(9), pages 1811-1830, September.
    12. Suman K SHARMA, 2010. "Socio-Economic Aspects of Disaster’s Impact: An Assessment of Databases and Methodologies," Economic Growth Centre Working Paper Series 1001, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    13. Ouyang, Min, 2014. "Review on modeling and simulation of interdependent critical infrastructure systems," Reliability Engineering and System Safety, Elsevier, vol. 121(C), pages 43-60.
    14. Joost R. Santos & Mark J. Orsi & Erik J. Bond, 2009. "Pandemic Recovery Analysis Using the Dynamic Inoperability Input‐Output Model," Risk Analysis, John Wiley & Sons, vol. 29(12), pages 1743-1758, December.
    15. Pant, Raghav & Barker, Kash & Zobel, Christopher W., 2014. "Static and dynamic metrics of economic resilience for interdependent infrastructure and industry sectors," Reliability Engineering and System Safety, Elsevier, vol. 125(C), pages 92-102.
    16. Chopra, Shauhrat S. & Khanna, Vikas, 2015. "Interconnectedness and interdependencies of critical infrastructures in the US economy: Implications for resilience," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 436(C), pages 865-877.
    17. van Bergeijk, P.A.G. & Lazzaroni, S., 2013. "Macroeconomics of natural disasters," ISS Working Papers - General Series 50075, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    18. Aziz Barhmi & Omar Hajaji, 2023. "Multidisciplinary Approach to Supply Chain Resilience: Conceptualization and Scale Development," Central European Business Review, Prague University of Economics and Business, vol. 2023(5), pages 43-69.
    19. Xiang Li, 2017. "Optimal procurement strategies from suppliers with random yield and all-or-nothing risks," Annals of Operations Research, Springer, vol. 257(1), pages 167-181, October.
    20. Jingxian Chen & Liang Liang & Dong-Qing Yao, 2017. "Pre-positioning of relief inventories for non-profit organizations: a newsvendor approach," Annals of Operations Research, Springer, vol. 259(1), pages 35-63, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:126:y:2010:i:1:p:130-143. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.