Designing a sustainable disruption-oriented supply chain under joint pricing and resiliency considerations: A case study

Supply chains must adopt an appropriate mechanism to deal with interrelated risks. Sustainable development's economic, environmental and social aspects are critical concerns of supply chains. This study presents a threeobjective model to design a forward supply chain network considering interrelated operational and disruptive risks. Several mitigative and preventive resilience strategies are implemented to cope with mentioned risks. Also, the optimal prices for products and parts are determined via a joint pricing strategy to enhance supply chain's profitability in disruption incidence. A stochastic robust optimization method is employed to deal with parameters' uncertainty. The proposed model is applied to an industry of manufacturing chemical processing equipment to validate the formulation and derive practical insights. Results revealed that simultaneously managing disruption risks and uncertainties can improve sustainability goals and reduce the costs associated with risk exposure and protection in the under-study supply chain.

Automated summary

This study presents a three-objective model to design a forward supply chain network considering interrelated operational and disruptive risks. Several strategies are implemented to cope with these risks, and a joint pricing strategy is used to enhance the profitability of the supply chain. The results show that managing risks and uncertainties simultaneously can improve sustainability goals and reduce associated costs.