The impact of digitalisation and Industry 4.0 on the ripple effect and disruption risk control analytics in the supply chain (SC) is studied. The research framework combines the results from two ...isolated areas, i.e. the impact of digitalisation on SC management (SCM) and the impact of SCM on the ripple effect control. To the best of our knowledge, this is the first study that connects business, information, engineering and analytics perspectives on digitalisation and SC risks. This paper does not pretend to be encyclopedic, but rather analyses recent literature and case-studies seeking to bring the discussion further with the help of a conceptual framework for researching the relationships between digitalisation and SC disruptions risks. In addition, it emerges with an SC risk analytics framework. It analyses perspectives and future transformations that can be expected in transition towards cyber-physical SCs. With these two frameworks, this study contributes to the literature by answering the questions of (1) what relations exist between big data analytics, Industry 4.0, additive manufacturing, advanced trace & tracking systems and SC disruption risks; (2) how digitalisation can contribute to enhancing ripple effect control; and (3) what digital technology-based extensions can trigger the developments towards SC risk analytics.
In this study, the ripple effect in the supply chain is analysed. Ripple effect describes the impact of a disruption propagation on supply chain performance and disruption-based scope of changes in ...supply chain structural design and planning parameters. We delineate major features of the ripple effect as compared to the bullwhip effect. Subsequently, we review recent quantitative literature that tackled the ripple effect explicitly or implicitly and give our vision of the state of the art and perspectives. The literature is classified into mathematical optimisation, simulation, control theoretic and complexity and reliability research. We observe the reasons and mitigation strategies for the ripple effect in the supply chain and present the ripple effect control framework that includes redundancy, flexibility and resilience analysis. Even though a variety of valuable insights has been developed in the said area in recent years, some crucial research avenues have been identified for the near future.
Recent research underlines the crucial role of disruption events and recovery policies in supply chains. Despite a wealth of literature on supply chain design with disruption considerations, to the ...best of our knowledge there is no survey on supply chain with disruptions and recovery considerations. We analyse state-of-the-art research streams on supply chain design and planning with both disruptions and recovery considerations with the aim of relating the existing quantitative methods to empirical research. The paper structures and classifies existing research streams and application areas of different quantitative methods subject to different disruption risks and recovery measures. We identify gaps in current research and delineate future research avenues. The results of this study are twofold: operations and supply chain managers can observe which quantitative tools are available for different application areas; on the other hand, limitations and future research needs for decision-support methods in supply chain risk management domains can be identified.
We investigate the interrelations of structural and operational vulnerabilities in the supply chain (SC) using discrete-event simulation for a real life case study. We theorise a notion of SC ...overlays and explore conditions surrounding their appearance. Such overlays occur if the negative consequences of changes in a SC structure as a result of a disruption are either amplified or mitigated by changes in the operational environment. We hypothesise that these overlays can be both reciprocal (i.e. complementary or mitigating) and aggravate (i.e. concurrent or enhancing). Our approach can be used for an efficient management of SC resilience capabilities by varying their levels over time. We show different ripple and bullwhip effect profiles, which lead to either reciprocal or aggravate overlays, and then we develop recommendations on the overlay-driven dynamic variation of resilience capability levels in order to enhance both SC resilience and efficiency through dynamic redundancy allocation. The results can be of value in selecting and deploying operational policies at the right time and scale during and after the recovery periods. Restricting analysis to the disruption period only and ignoring operational dynamics after capacity recovery can result in misleading or inefficient SC resilience and recovery policies.
Ripple effect is a specific area of SC disruptions and a strong stressor to SC resilience. Research on the ripple effect analyses how one or more disruptive events propagate through the SC and impact ...its resilience and performance. The phenomenon of the ripple effect, immensely existing in practice, has received great research interest in recent years. Ripple effect management, modelling and assessment became visible research avenues with a growing number and scope of contributions. This Special Issue presents recent developments on the ripple effect in SCs. The Special Issue focuses on studies that address the ripple effect and provide a comprehensive picture of the state of the art and future perspectives. The methodologies comprise of mathematical optimisation, simulation, game theory, control theoretic, data-driven analytics, network complexity, reliability theory research, and empirical research. Even though a variety of valuable insights have been developed in this area in recent years, new research avenues and ripple effect taxonomies are identified for further exploring the ripple effect in the settings of the COVID-19 pandemic, SC viability, viable SC model, and reconfigurable SCs.
An outbreak of deadly COVID-19 virus has not only taken the lives of people but also severely crippled the economy. Due to strict lockdown, the manufacturing and logistics activities have been ...suspended, and it has affected the demand and supply of various products as a result of restrictions imposed on shopkeepers and retailers. Impacts of COVID-19 are observed ubiquitously in every type of units from different sectors. In this study, a simulation model of the public distribution system (PDS) network is developed with three different scenarios to demonstrate disruptions in the food supply chain. Difficulties have been increased in matching supply and demand in a vast network of PDS because of changing scenarios with the growth of infected cases and recovery. This paper also highlights the importance of a resilient supply chain during a pandemic. Our proposed simulation model can help in developing a resilient and responsive food supply chain to match the varying demand, and then further assist in providing decision-making support for rerouting the vehicles as per travel restrictions in areas. Paper has been summarised with significant highlights and including future research scope for developing a more robust food supply chain network.
Dynamics of structures and processes is one of the underlying challenges in supply chain management, where multiple dimensions of economic efficiency, risk management and sustainability are ...interconnected. One of the substantiated issues in supply chain dynamics is resilience. Resilience has a number of intersections with supply chain sustainability. This paper aims at analysing disruption propagation in the supply chain with consideration of sustainability factors in order to design resilient supply chain structure in regard to ripple effect mitigation and sustainability increase. Ripple effect in the supply chain occurs if a disruption at a supplier cannot be localised and cascades downstream impacting supply chain performance. This simulation-based study helps to identify what sustainability factors mitigate the ripple effect in the supply chain and what sustainability factors enhance this effect. The results indicate that (i) sustainable single sourcing enhances the ripple effect; (ii) facility fortification at major employers in regions mitigates the ripple effect and enhances sustainability; and (iii) a reduction in storage facilities in the supply chain downstream of a disruption-risky facility increases sustainability but causes the ripple effect.
Viability is the ability of a supply chain (SC) to maintain itself and survive in a changing environment through a redesign of structures and replanning of performance with long-term impacts. In this ...paper, we theorize a new notion—the viable supply chain (VSC). In our approach, viability is considered as an underlying SC property spanning three perspectives, i.e., agility, resilience, and sustainability. The principal ideas of the VSC model are adaptable structural SC designs for supply–demand allocations and, most importantly, establishment and control of adaptive mechanisms for transitions between the structural designs. Further, we demonstrate how the VSC components can be categorized across organizational, informational, process-functional, technological, and financial structures. Moreover, our study offers a VSC framework within an SC ecosystem. We discuss the relations between resilience and viability. Through the lens and guidance of dynamic systems theory, we illustrate the VSC model at the technical level. The VSC model can be of value for decision-makers to design SCs that can react adaptively to both positive changes (i.e., the agility angle) and be able to absorb negative disturbances, recover and survive during short-term disruptions and long-term, global shocks with societal and economical transformations (i.e., the resilience and sustainability angles). The VSC model can help firms in guiding their decisions on recovery and re-building of their SCs after global, long-term crises such as the COVID-19 pandemic. We emphasize that resilience is the central perspective in the VSC guaranteeing viability of the SCs of the future. Emerging directions in VSC research are discussed.
In the context of a dynamic and hypercompetitive business environment, effective supply chain design helps organisations to align resources for improved flow of products and services and satisfy ...customers' diverse needs. Scholars have proposed several mutually exclusive supply chain designs such as efficient versus responsive, and lean versus agile. Quantitative testing has revealed that supply chain designs of many firms do not match with what was conceptually expected. To address this mismatch, in this study, a new approach to supply chain leagility is introduced and the impact of uncertainty as the key design driver of supply chains on leagility is investigated. The partial least squares (PLS) was employed to analyse data collected from 299 Australian firms by administering a structured questionnaire. Results indicate that higher performance is achievable on minimising the deviation from a balanced supply chain in which aspects of both leanness and agility are equally embedded. Further, the level of uncertainty directly and positively affects the Deviation from Leagility (DFL) index.
An intertwined supply network (ISN) is an entirety of interconnected supply chains (SC) which, in their integrity secure the provision of society and markets with goods and services. The ISNs are ...open systems with structural dynamics since the firms may exhibit multiple behaviours by changing the buyer-supplier roles in interconnected or even competing SCs. From the positions of resilience, the ISNs as a whole provide services to society (e.g. food service, mobility service or communication service) which are required to ensure a long-term survival. The analysis of survivability at the level of ISN requires a consideration at a large scale as resilience of individual SCs. The recent example of coronavirus COVID-19 outbreak clearly shows the necessity of this new perspective. Our study introduces a new angle in SC resilience research when a resistance to extraordinary disruptions needs to be considered at the scale of viability. We elaborate on the integrity of the ISN and viability. The contribution of our position study lies in a conceptualisation of a novel decision-making environment of ISN viability. We illustrate the viability formation through a dynamic game-theoretic modelling of a biological system that resembles the ISN. We discuss some future research areas.
PDF
