A methodological framework for efficient and resilient supply network design

The growing competition and the destabilising effects of climate, disease and other external perils bring important challenges to companies worldwide. Supply chain (SC) networks become more and more complex with a growing exposure to abroad range of uncertainties, some of which may cause network disruptions. Neglecting these kinds of risks may lead to adverse consequences, such as negative financial effects, higher transportation costs, order delays, inventory shortages, and loss of market shares. Frequent disruption events that have been continuously increasing over recent years have clearly shown the key role of supply chain resilience. To hedge against SC disruptions, a well-designed and reliable supply network that performs efficiently in normal situations and resiliently during unstable conditions is a top priority. In this paper, starting from the discussion of the main design drivers for a resilient SC, a methodological framework is proposed to support both efficient and resilient supply network design. The procedure gets foundation from the recent literature, and it is directly derived from its application in a numerical example and an industrial case. Copyright (C) 2022 The Authors.

Automated summary

The growing competition and external perils pose significant challenges to companies worldwide, requiring resilient and efficient supply networks to mitigate risks and ensure operational stability.