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A Dynamic Analysis for Mitigating Disaster Effects in Closed Loop Supply Chains

Author

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  • Efthymios Katsoras

    (Industrial Management Division, Department of Mechanical Engineering, Aristotle University of Thessaloniki, P.O. Box 461, 541 24 Thessaloniki, Greece)

  • Patroklos Georgiadis

    (Industrial Management Division, Department of Mechanical Engineering, Aristotle University of Thessaloniki, P.O. Box 461, 541 24 Thessaloniki, Greece)

Abstract

The increased level of complexity in the case of Closed Loop Supply Chains (CLSCs) turns them into vulnerable systems under a disaster event. The latter calls for a methodological approach that allows a dynamic study under alternative policies in mitigating the disaster effects with a focus on creating sustainable CLSCs. For this reason, we provide a System Dynamics (SD)-based analysis for disaster events on the operation of CLSCs. By “disaster event”, we mean three different categories taking shape on the basis of duration. Furthermore, three different demand patterns emerging due to the disaster event are examined. We assume that the disaster event affects the manufacturer, and we examine the system response under different mitigation policies. For each demand pattern two different mitigation policies at the manufacturer level are examined by considering the total CLSC profit and demand backlog as measures of policy performance. For each combination, extensive simulation experimentation reveals sustainable policy recommendations under alternative settings regarding the reduction in the manufacturer’s production.

Suggested Citation

  • Efthymios Katsoras & Patroklos Georgiadis, 2022. "A Dynamic Analysis for Mitigating Disaster Effects in Closed Loop Supply Chains," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:9:p:4948-:d:797970
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    1. Wei Duan & Hengli Cao & Desheng Xu, 2023. "Research on the Impact of New Parts Price Increase on the Stability of Closed-Loop Supply Chain," Sustainability, MDPI, vol. 15(16), pages 1-24, August.

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