Supply Chain Resilience: An Optimisation Model to Identify the Relative Importance of SC Disturbances

Abstract

Supply Chains (SC) have been facing a vast set of events that can endanger their operations and produce permanent damage, which are unknown until its occurrence. This led to an increased awareness of SC Resilience to deal with such SC uncertainty. This work uses a Mixed Integer Linear Programming model to study the relative importance of the different types of events that threaten SC operations exploring the use of two indicators Expected NPV (ENPV) and Expected Service Level (ECSL). From this work, it can be said that upstream disturbances are of greater importance and because of that should be more efficiently managed, generating value and ultimately a competitive advantage to companies that deploy resilience concerns to their operations.