Framework for Designing Robust Supply Chains

Abstract

Today’s business environment and harsh competitiveness force companies and entire supply chains to increase their efficiency as much as possible. As a consequence, supply chains have become highly sensitive to disruptions and less tolerant to deviations in operations, that is, supply chains have become more vulnerable (see Kleindorfer and Saad, 2005). Vulnerability of supply chains may result in less consistent supply chain performances, and consequently, their competitive power in the market may diminish. In order to maintain stability of supply chain performances, it is necessary to design robust supply chains. Robust supply chains should be able to continue to function well in the event of a disruption as well as in the normal business environment (see Dong, 2006; Tang, 2006; Waters, 2007). Generally, robustness of the supply chain depends on its capability to respond adequately to different kinds of risks of disturbances. Recently, supply chain vulnerability and robustness has become a hot research topic, and as such, it is still in its infancy. With this paper, we aim to contribute to the existing knowledge in these areas.