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Adapting to Disruptions: Flexibility as a Pillar of Supply Chain Resilience

Author

Listed:
  • Ambra Amico
  • Luca Verginer
  • Giona Casiraghi
  • Giacomo Vaccario
  • Frank Schweitzer

Abstract

Supply chain disruptions cause shortages of raw material and products. To increase resilience, i.e., the ability to cope with shocks, substituting goods in established supply chains can become an effective alternative to creating new distribution links. We demonstrate its impact on supply deficits through a detailed analysis of the US opioid distribution system. Reconstructing 40 billion empirical distribution paths, our data-driven model allows a unique inspection of policies that increase the substitution flexibility. Our approach enables policymakers to quantify the trade-off between increasing flexibility, i.e., reduced supply deficits, and increasing complexity of the supply chain, which could make it more expensive to operate.

Suggested Citation

  • Ambra Amico & Luca Verginer & Giona Casiraghi & Giacomo Vaccario & Frank Schweitzer, 2023. "Adapting to Disruptions: Flexibility as a Pillar of Supply Chain Resilience," Papers 2304.05290, arXiv.org.
    • Handle: RePEc:arx:papers:2304.05290
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    References listed on IDEAS

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    1. Frank Schweitzer & Georges Andres & Giona Casiraghi & Christoph Gote & Ramona Roller & Ingo Scholtes & Giacomo Vaccario & Christian Zingg, 2022. "Modeling Social Resilience: Questions, Answers, Open Problems," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 25(08), pages 1-50, December.
    2. Rebekka Burkholz & Frank Schweitzer, 2019. "International crop trade networks: The impact of shocks and cascades," Papers 1901.05872, arXiv.org.
    3. Ingo Scholtes & Nicolas Wider & René Pfitzner & Antonios Garas & Claudio J. Tessone & Frank Schweitzer, 2014. "Causality-driven slow-down and speed-up of diffusion in non-Markovian temporal networks," Nature Communications, Nature, vol. 5(1), pages 1-9, December.
    4. Tang, Christopher & Tomlin, Brian, 2008. "The power of flexibility for mitigating supply chain risks," International Journal of Production Economics, Elsevier, vol. 116(1), pages 12-27, November.
    5. Stéphane Hallegatte, 2014. "Modeling the Role of Inventories and Heterogeneity in the Assessment of the Economic Costs of Natural Disasters," Risk Analysis, John Wiley & Sons, vol. 34(1), pages 152-167, January.
    6. Alexandre Dolgui & Dmitry Ivanov & Boris Sokolov, 2018. "Ripple effect in the supply chain: an analysis and recent literature," International Journal of Production Research, Taylor & Francis Journals, vol. 56(1-2), pages 414-430, January.
    7. Tobias Bier & Anne Lange & Christoph H. Glock, 2020. "Methods for mitigating disruptions in complex supply chain structures: a systematic literature review," International Journal of Production Research, Taylor & Francis Journals, vol. 58(6), pages 1835-1856, March.
    8. Schweitzer, Frank, 2022. "Group relations, resilience and the I Ching," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 603(C).
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