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How does the trust affect the topology of supply chain network and its resilience? An agent-based approach

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  • Hou, Yunzhang
  • Wang, Xiaoling
  • Wu, Yenchun Jim
  • He, Peixu

Abstract

This paper builds a dynamic supply chain network, where firms can select suppliers according to the trust, the selling price or just randomly. Simulation results show that the trust-based rule can significantly increase the aggregated working capital and decrease firm's likelihoods of bankruptcy. Moreover, firms' sizes under trust-based and price-based rules follow power-law distributions. The degree distribution of supply chain network under price-based rule follows a power-law distribution, while those under trust-based and randomly-choosing rules are similar to that of random network. Furthermore, results also indicate that trust-based rule is the most robust one against random and targeted disruptions.

Suggested Citation

  • Hou, Yunzhang & Wang, Xiaoling & Wu, Yenchun Jim & He, Peixu, 2018. "How does the trust affect the topology of supply chain network and its resilience? An agent-based approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 116(C), pages 229-241.
    • Handle: RePEc:eee:transe:v:116:y:2018:i:c:p:229-241
    DOI: 10.1016/j.tre.2018.07.001
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