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Topological Structure of Manufacturing Industry Supply Chain Networks

Author

Listed:
  • Supun S. Perera
  • Michael G. H. Bell
  • Mahendrarajah Piraveenan
  • Dharshana Kasthurirathna
  • Mamata Parhi

Abstract

Empirical analyses of supply chain networks (SCNs) in extant literature have been rare due to scarcity of data. As a result, theoretical research have relied on arbitrary growth models to generate network topologies supposedly representative of real-world SCNs. Our study is aimed at filling the above gap by systematically analysing a set of manufacturing sector SCNs to establish their topological characteristics. In particular, we compare the differences in topologies of undirected contractual relationships (UCR) and directed material flow (DMF) SCNs. The DMF SCNs are different from the typical UCR SCNs since they are characterised by a strictly tiered and an acyclic structure which does not permit clustering. Additionally, we investigate the SCNs for any self-organized topological features. We find that most SCNs indicate disassortative mixing and power law distribution in terms of interfirm connections. Furthermore, compared to randomised ensembles, self-organized topological features were evident in some SCNs in the form of either overrepresented regimes of moderate betweenness firms or underrepresented regimes of low betweenness firms. Finally, we introduce a simple and intuitive method for estimating the robustness of DMF SCNs, considering the loss of demand due to firm disruptions. Our work could be used as a benchmark for any future analyses of SCNs.

Suggested Citation

  • Supun S. Perera & Michael G. H. Bell & Mahendrarajah Piraveenan & Dharshana Kasthurirathna & Mamata Parhi, 2018. "Topological Structure of Manufacturing Industry Supply Chain Networks," Complexity, Hindawi, vol. 2018, pages 1-23, October.
  • Handle: RePEc:hin:complx:3924361
    DOI: 10.1155/2018/3924361
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    References listed on IDEAS

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    1. Claude Diebolt & Tapas Mishra & Mamata Parhi, 2016. "Dynamics of Distribution and Diffusion of New Technology," India Studies in Business and Economics, Springer, number 978-3-319-32744-0, December.
    2. Mamata Parhi, 2008. "Impact of Changing Facets of Inter-firm Interactions on Manufacturing Excellence: A Social Network Perspective of Indian Automotive Industry," Working Papers of BETA 2008-08, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
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    Cited by:

    1. Dharshana Kasthurirathna & Prasan Ratnayake & Mahendra Piraveenan, 2022. "Disassortative Mixing and Systemic Rational Behaviour: How System Rationality Is Influenced by Topology and Placement in Networked Systems," Mathematics, MDPI, vol. 10(18), pages 1-17, September.
    2. Shi, Xiaoqiu & Long, Wei & Li, Yanyan & Deng, Dingshan, 2022. "Robustness of interdependent supply chain networks against both functional and structural cascading failures," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 586(C).
    3. Prasan Ratnayake & Sugandima Weragoda & Janaka Wansapura & Dharshana Kasthurirathna & Mahendra Piraveenan, 2021. "Quantifying the Robustness of Complex Networks with Heterogeneous Nodes," Mathematics, MDPI, vol. 9(21), pages 1-20, November.

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