Analysing the supply chain network reconfiguration under disruption risk environment

A p-robust supply chain network (SCN) reconfiguration model under disruptions in dynamic mid-term horizon considering decision-maker (DM)'s risk-attitude is presented. Reconfiguration of SCN within a time horizon by utilising excess resources of undisrupted facilities, outsourcing and capacity expansion is studied. At first, the single-objective cost minimisation problem is formulated and extended as a multi-objective problem incorporating responsiveness as another objective. Pareto solutions are obtained using augmented ε-constraint (AUGMECON) method. The major inferences include: 1) the cost minimisation model opens a fewer facility under nominal condition and prefers capacity expansion strategy under disruptions; 2) the inclusion of responsiveness objective results in opening more facilities with outsourcing as preferred reactive strategy; 3) DM's attitude significantly affect structural decisions but not the parametric decisions such as capacity expansion, material flow redirection, and outsourcing; 4) a neutral DM selects a dispersed and diversified portfolio of facilities, whereas averse DM opens backup facilities closer to critical facilities.