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A quantitative analysis of simultaneous supply and demand disruptions on a multi-echelon supply chain

Author

Listed:
  • Austin R. Kost
  • Hector A. Vergara
  • J. David Porter

Abstract

This research aimed to uncover how different features of simultaneous supply and demand disruptions impact the performance of a multi-echelon supply chain. A discrete event simulation model was developed in ARENA and a full factorial designed experiment was conducted to understand how different disruption characteristics affect key supply chain performance metrics. Historical data was obtained for a four-echelon supply chain owned by a single company using the guaranteed service model inventory policy. Results showed that the severity of a demand disruption had considerable impact on performance during the disruption period. Furthermore, disruptions that occurred further upstream in the supply chain were more likely to translate into a decrease in overall performance in the post-disruption period when compared to disruptions located elsewhere. It was also found that additional inventory can be expected to accumulate at a disrupted node which, in turn, could translate into inventory reductions immediately upstream of the disrupted node.

Suggested Citation

  • Austin R. Kost & Hector A. Vergara & J. David Porter, 2024. "A quantitative analysis of simultaneous supply and demand disruptions on a multi-echelon supply chain," International Journal of Industrial and Systems Engineering, Inderscience Enterprises Ltd, vol. 46(4), pages 556-583.
    • Handle: RePEc:ids:ijisen:v:46:y:2024:i:4:p:556-583
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