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The design of robust value-creating supply chain networks: A critical review

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  • Klibi, Walid
  • Martel, Alain
  • Guitouni, Adel
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    Abstract

    This paper discusses Supply Chain Network (SCN) design problem under uncertainty, and presents a critical review of the optimization models proposed in the literature. Some drawbacks and missing aspects in the literature are pointed out, thus motivating the development of a comprehensive SCN design methodology. Through an analysis of supply chains uncertainty sources and risk exposures, the paper reviews key random environmental factors and discusses the nature of major disruptive events threatening SCN. It also discusses relevant strategic SCN design evaluation criteria, and it reviews their use in existing models. We argue for the assessment of SCN robustness as a necessary condition to ensure sustainable value creation. Several definitions of robustness, responsiveness and resilience are reviewed, and the importance of these concepts for SCN design is discussed. This paper contributes to framing the foundations for a robust SCN design methodology.

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    Bibliographic Info

    Article provided by Elsevier in its journal European Journal of Operational Research.

    Volume (Year): 203 (2010)
    Issue (Month): 2 (June)
    Pages: 283-293

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    Handle: RePEc:eee:ejores:v:203:y:2010:i:2:p:283-293

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    Web page: http://www.elsevier.com/locate/eor

    Related research

    Keywords: Supply chain network design Value creation Uncertainty Network disruptions Robustness Scenario planning Location models Capacity models Resilience strategies;

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    Cited by:
    1. Klibi, Walid & Martel, Alain, 2012. "Modeling approaches for the design of resilient supply networks under disruptions," International Journal of Production Economics, Elsevier, vol. 135(2), pages 882-898.
    2. Longinidis, Pantelis & Georgiadis, Michael C., 2011. "Integration of financial statement analysis in the optimal design of supply chain networks under demand uncertainty," International Journal of Production Economics, Elsevier, vol. 129(2), pages 262-276, February.
    3. Georgiadis, Michael C. & Tsiakis, Panagiotis & Longinidis, Pantelis & Sofioglou, Maria K., 2011. "Optimal design of supply chain networks under uncertain transient demand variations," Omega, Elsevier, vol. 39(3), pages 254-272, June.
    4. Longinidis, Pantelis & Georgiadis, Michael C., 2014. "Integration of sale and leaseback in the optimal design of supply chain networks," Omega, Elsevier, vol. 47(C), pages 73-89.
    5. Ivanov, Dmitry & Sokolov, Boris, 2013. "Control and system-theoretic identification of the supply chain dynamics domain for planning, analysis and adaptation of performance under uncertainty," European Journal of Operational Research, Elsevier, vol. 224(2), pages 313-323.
    6. Hassini, Elkafi & Surti, Chirag & Searcy, Cory, 2012. "A literature review and a case study of sustainable supply chains with a focus on metrics," International Journal of Production Economics, Elsevier, vol. 140(1), pages 69-82.
    7. Elimam, A.A. & Dodin, B., 2013. "Project scheduling in optimizing integrated supply chain operations," European Journal of Operational Research, Elsevier, vol. 224(3), pages 530-541.
    8. Klibi, Walid & Martel, Alain, 2012. "Scenario-based Supply Chain Network risk modeling," European Journal of Operational Research, Elsevier, vol. 223(3), pages 644-658.
    9. Das, Kanchan, 2011. "Integrating effective flexibility measures into a strategic supply chain planning model," European Journal of Operational Research, Elsevier, vol. 211(1), pages 170-183, May.
    10. Mallidis, I. & Vlachos, D. & Dekker, R., 2010. "Greening Supply Chains: Impact on Cost and Design," Econometric Institute Research Papers EI 2010-39a, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    11. Walther, Grit & Schatka, Anne & Spengler, Thomas S., 2012. "Design of regional production networks for second generation synthetic bio-fuel – A case study in Northern Germany," European Journal of Operational Research, Elsevier, vol. 218(1), pages 280-292.
    12. Cardoso, Sónia R. & Barbosa-Póvoa, Ana Paula F.D. & Relvas, Susana, 2013. "Design and planning of supply chains with integration of reverse logistics activities under demand uncertainty," European Journal of Operational Research, Elsevier, vol. 226(3), pages 436-451.

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