Designing a Resilient Supply Management System for a Supply Chain

A mathematical model based approach is proposed to develop disaster risk resiliency for the supply management system of a supply chain (SC). The SC faces supply disruption risks due to natural calamities at supply origins; border congestion, custom employee strikes, and similar events for supply items in transit; major accidents or breakdowns in supplier factories, and other reasons. Potential supply failure at a future period from natural calamities or other reasons can be withstood by including supply flexibility and supply source relocation plan to a non- affected supply location. The proposed model includes supplier flexibility for locations and having more than one supplier for an input to create disaster risk resiliency for supply management system. The model also includes keeping extra inventory and procurement of inputs from a pool of spot quotation based suppliers when supplier flexibility options cannot fulfill the entire requirements. A numerical example illustrates the applicability of the approach.