Reliable Supply chain network design considering resilience strategies under risk of disruption

This paper presents a scenario-based supply chain network design (SCND) model in the case of disruption occurrence with a single type of product. The proposed supply chain (SC) is composed of three echelons including manufacturers, distribution centers (DCs), and customers. Two kinds of DCs namely reliable and unreliable DCs are considered in the presented model. Disruption affects unreliable DCs and causes lose a portion of their capacity. Thus the capacity of an unreliable DC in each period is assumed to be a positive variable that is specified based on its capacity in the previous period. There are different levels of investment for establishing each DC which affects on amount of capacity loss due to disruption. To reduce the effects of disruption on SC, two resilience strategies, DC capacity fortification and inventory keeping are considered, and the results under each strategy is investigated. Presenting numerical examples, the outcomes are investigated and the advantages of the proactive manner versus reactive manner are shown. Finally, sensitivity analysis is done on disruption related parameters to show how parameters influence the model outputs.