4.5 Article

A digital supply chain twin for managing the disruption risks and resilience in the era of Industry 4.0

Journal

PRODUCTION PLANNING & CONTROL
Volume 32, Issue 9, Pages 775-788

Publisher

TAYLOR & FRANCIS LTD
DOI: 10.1080/09537287.2020.1768450

Keywords

Supply chain; resilience; Industry 4; 0; disruption risk; data analytics; digital twin

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This study introduces the concept of a digital supply chain twin and its applications in managing supply chain risks, particularly during the COVID-19 pandemic. Digital twins enhance predictive and reactive decisions in risk management, ensuring supply chain visibility and business continuity.
We theorize a notion of a digital supply chain (SC) twin - a computerized model that represents network states for any given moment in real time. We explore the conditions surrounding the design and implementation of the digital twins when managing disruption risks in SCs. The combination of model-based and data-driven approaches allows uncovering the interrelations of risk data, disruption modeling, and performance assessment. The SC shocks and adaptations amid the COVID-19 pandemic along with post-pandemic recoveries provide indisputable evidences for the urgent needs of digital twins for mapping supply networks and ensuring visibility. The results of this study contribute to the research and practice of SC risk management by enhancing predictive and reactive decisions to utilize the advantages of SC visualization, historical disruption data analysis, and real-time disruption data and ensure end-to-end visibility and business continuity in global companies.

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