Developing a resilient supply chain through supplier flexibility and reliability assessment

  • Kamalahmadi M
  • Mellat-Parast M
  • 68

    Readers

    Mendeley users who have this article in their library.
  • 9

    Citations

    Citations of this article.

Abstract

In this study, we examine the optimal allocation of demand across a set of suppliers in a supply chain that is exposed to supply risk and environmental risk. A two-stage mixed-integer programming model is used to develop a flexible sourcing strategy under disruptions. Our model integrates supplier selection and demand allocation with transportation channel selection and provides contingency plans to mitigate the negative impacts of disruptions and minimise total network costs. Finally, a numerical example is presented to illustrate the model and provide insights. The findings suggest that developing contingency plans using flexibility in suppliers production capacity is an effective strategy for firms to mitigate the severity of disruptions. We also show that flexibility and reliability of the suppliers and regions play a significant role in determining contingency plans for during disruption. Findings generally show that highly flexible suppliers receive less allocation, and their flexible capacity is reserved for disruptions. For firms that do not incorporate risk management into supplier selection and allocation, the recommendation is to source from fewer, more reliable suppliers with less risk of disruption. Our findings also emphasise that the type of disruption has important implications for supplier selection and demand allocation. This study highlights the supply chain risk management strategy of regionalising as a means for minimising the impact of environmental disruptions. © 2015 Taylor and Francis.

Author-supplied keywords

  • delivery reliability
  • demand allocation
  • disruption risk
  • resilient supply chain
  • supplier selection

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document

Get full text

Authors

  • Masoud Kamalahmadi

  • Mahour Mellat-Parast

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free