Resilience-Based Restoration Model for Supply Chain Networks

Abstract

An optimal restoration strategy for supply chain networks can efficiently schedule the repair activities under resource limits. However, a wide range of previous studies solve this problem from the perspective of cost-effectiveness instead of a resilient manner. This research formulates the problem as a network maximum-resilience decision. We develop two metrics to measure the resilience of the supply chain networks, i.e., the resilience of cumulative performance loss and the resilience of restoration rapidity. Then, we propose a bi-objective nonlinear programming model, which aims to maximize the network resilience under the budget and manpower constraints. A modified simulated annealing algorithm is employed to solve the model. Finally, a testing supply chain network is utilized to illustrate the effectiveness of the proposed method framework. The results show that the optimal restoration schedule generated by the proposed model is a tradeoff between the cumulative performance loss and the restoration rapidity. Additionally, the sensitivity analysis of parameters indicates that decision-maker’s preference, tolerance factor of delivery time, number of work crews, and availability of budget all have significant impacts on the restoration schedule.

Keywords

• optimal restoration schedule
• supply chain network
• resilience
• bi-objective nonlinear programming model
• simulated annealing algorithm