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Structural quantification of the ripple effect in the supply chain

Author

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  • Boris Sokolov
  • Dmitry Ivanov
  • Alexandre Dolgui
  • Alexander Pavlov

Abstract

In recent years, remarkable advancements have been achieved in quantitative analysis methods for supply chain design (SCD). Typically, cost or service level optimisation has been included in the objective functions. At the same time, supply chain managers face the ripple effect that arises from vulnerability, instability and disruptions in supply chains. This research aimed to quantify the ripple effect in the supply chain from the structural perspective. The research agenda of this study includes issues of integrating operability objectives as new key performance indicators, e.g. resilience, stability, robustness into SCD decisions. The research is based on a simultaneous consideration of both static structural properties of SCD and execution dynamics subject to uncertainty and disruptions. Due to high dimensionality of real SCD problems, such integration can hardly be implemented in only one model. In this study, an original two-model multi-criteria approach is proposed in order to assess the potential ability of an SCD to remain stable and resilient. This modelling approach is based on a combined application of a static and a dynamic model. A multi-criteria approach relies on the analytic hierarchy process method. The results of this research can be used as an additional quantitative analysis tool in order to select an SCD. An additional application of the developed method is that it can be used at the control stage in order to adapt supply chain execution subject to the achievement of desired economic performance.

Suggested Citation

  • Boris Sokolov & Dmitry Ivanov & Alexandre Dolgui & Alexander Pavlov, 2016. "Structural quantification of the ripple effect in the supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 54(1), pages 152-169, January.
  • Handle: RePEc:taf:tprsxx:v:54:y:2016:i:1:p:152-169
    DOI: 10.1080/00207543.2015.1055347
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    Citations

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    Cited by:

    1. Dirzka, Christopher & Acciaro, Michele, 2022. "Global shipping network dynamics during the COVID-19 pandemic's initial phases," Journal of Transport Geography, Elsevier, vol. 99(C).
    2. Pinyarat Sirisomboonsuk & James Burns, 2023. "Sustainability in Supply Chains through Rapid Capacity Increases and Minimized Disruptions," Sustainability, MDPI, vol. 15(7), pages 1-17, March.
    3. Hosseini, Seyedmohsen & Morshedlou, Nazanin & Ivanov, Dmitry & Sarder, M.D. & Barker, Kash & Khaled, Abdullah Al, 2019. "Resilient supplier selection and optimal order allocation under disruption risks," International Journal of Production Economics, Elsevier, vol. 213(C), pages 124-137.
    4. Dixit, Vijaya & Verma, Priyanka & Tiwari, Manoj Kumar, 2020. "Assessment of pre and post-disaster supply chain resilience based on network structural parameters with CVaR as a risk measure," International Journal of Production Economics, Elsevier, vol. 227(C).
    5. João Pires Ribeiro & Ana Paula F. D. Barbosa-Póvoa, 2023. "A responsiveness metric for the design and planning of resilient supply chains," Annals of Operations Research, Springer, vol. 324(1), pages 1129-1181, May.
    6. Ivanov, Dmitry & Dolgui, Alexandre, 2021. "OR-methods for coping with the ripple effect in supply chains during COVID-19 pandemic: Managerial insights and research implications," International Journal of Production Economics, Elsevier, vol. 232(C).
    7. Li, Yuhong & Zobel, Christopher W. & Seref, Onur & Chatfield, Dean, 2020. "Network characteristics and supply chain resilience under conditions of risk propagation," International Journal of Production Economics, Elsevier, vol. 223(C).
    8. Ghadge, Abhijeet & van der Werf, Sjoerd & Er Kara, Merve & Goswami, Mohit & Kumar, Pankaj & Bourlakis, Michael, 2020. "Modelling the impact of climate change risk on bioethanol supply chains," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    9. Garvey, Myles D. & Carnovale, Steven, 2020. "The rippled newsvendor: A new inventory framework for modeling supply chain risk severity in the presence of risk propagation," International Journal of Production Economics, Elsevier, vol. 228(C).
    10. K. Katsaliaki & P. Galetsi & S. Kumar, 2022. "Supply chain disruptions and resilience: a major review and future research agenda," Annals of Operations Research, Springer, vol. 319(1), pages 965-1002, December.
    11. Asadabadi, Ali & Miller-Hooks, Elise, 2018. "Co-opetition in enhancing global port network resiliency: A multi-leader, common-follower game theoretic approach," Transportation Research Part B: Methodological, Elsevier, vol. 108(C), pages 281-298.
    12. Dmitry Ivanov & Boris Sokolov, 2019. "Simultaneous structural–operational control of supply chain dynamics and resilience," Annals of Operations Research, Springer, vol. 283(1), pages 1191-1210, December.
    13. Liu, Ming & Liu, Zhongzheng & Chu, Feng & Dolgui, Alexandre & Chu, Chengbin & Zheng, Feifeng, 2022. "An optimization approach for multi-echelon supply chain viability with disruption risk minimization," Omega, Elsevier, vol. 112(C).
    14. Alexander Pavlov & Dmitry Ivanov & Frank Werner & Alexandre Dolgui & Boris Sokolov, 2022. "Integrated detection of disruption scenarios, the ripple effect dispersal and recovery paths in supply chains," Annals of Operations Research, Springer, vol. 319(1), pages 609-631, December.
    15. Seyedmohsen Hosseini & Dmitry Ivanov, 2022. "A new resilience measure for supply networks with the ripple effect considerations: a Bayesian network approach," Annals of Operations Research, Springer, vol. 319(1), pages 581-607, December.

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