IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v152y2021ics1366554521001794.html
   My bibliography  Save this article

Food retail supply chain resilience and the COVID-19 pandemic: A digital twin-based impact analysis and improvement directions

Author

Listed:
  • Burgos, Diana
  • Ivanov, Dmitry

Abstract

In this study, we examine the impact of the COVID-19 pandemic on food retail supply chains (SCs) and their resilience. Based on real-life pandemic scenarios encountered in Germany, we develop and use a discrete-event simulation model to examine SC operations and performance dynamics with the help of anyLogistix digital SC twin. The computational results show that food retail SC resilience at the upheaval times is triangulated by the pandemic intensity and associated lockdown/shutdown governmental measures, inventory-ordering dynamics in the SC, and customer behaviours. We observe that surges in demand and supplier shutdowns have had the highest impact on SC operations and performance, whereas the impact of transportation disruptions was rather low. Transportation costs have spiked because of chaotic inventory-ordering dynamics leading to more frequent and irregular shipments. On bright side, we observe the demand growth and utilization of online sales channels yielding higher revenues. We propose several directions and practical implementation guidelines to improve the food retail SC resilience. We stress the importance of SC digital twins and end-to-end visibility along with resilient demand, inventory, and capacity management. The outcomes of our study can be instructive for enhancing the resilience of food retail SCs in preparation for future pandemics and pandemic-like crises.

Suggested Citation

  • Burgos, Diana & Ivanov, Dmitry, 2021. "Food retail supply chain resilience and the COVID-19 pandemic: A digital twin-based impact analysis and improvement directions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    • Handle: RePEc:eee:transe:v:152:y:2021:i:c:s1366554521001794
    DOI: 10.1016/j.tre.2021.102412
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554521001794
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2021.102412?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alexandre Dolgui & Dmitry Ivanov & Boris Sokolov, 2020. "Reconfigurable supply chain: the X-network," International Journal of Production Research, Taylor & Francis Journals, vol. 58(13), pages 4138-4163, July.
    2. Sven Winkelhaus & Eric H. Grosse, 2020. "Logistics 4.0: a systematic review towards a new logistics system," International Journal of Production Research, Taylor & Francis Journals, vol. 58(1), pages 18-43, January.
    3. Alexandre Dolgui & Dmitry Ivanov & Boris Sokolov, 2018. "Ripple effect in the supply chain: an analysis and recent literature," International Journal of Production Research, Taylor & Francis Journals, vol. 56(1-2), pages 414-430, January.
    4. Aseem Kinra & Dmitry Ivanov & Ajay Das & Alexandre Dolgui, 2020. "Ripple effect quantification by supplier risk exposure assessment," International Journal of Production Research, Taylor & Francis Journals, vol. 58(18), pages 5559-5578, September.
    5. Hosseini, Seyedmohsen & Ivanov, Dmitry & Dolgui, Alexandre, 2019. "Review of quantitative methods for supply chain resilience analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 285-307.
    6. Füchtenhans, M. & Grosse, E. H. & Glock, C. H., 2021. "Smart lighting systems: state-of-the-art and potential applications in warehouse order picking," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 131496, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    7. Dmitry Ivanov, 2021. "Supply Chain Viability and the COVID-19 pandemic: a conceptual and formal generalisation of four major adaptation strategies," International Journal of Production Research, Taylor & Francis Journals, vol. 59(12), pages 3535-3552, June.
    8. Alexandra Brintrup & Johnson Pak & David Ratiney & Tim Pearce & Pascal Wichmann & Philip Woodall & Duncan McFarlane, 2020. "Supply chain data analytics for predicting supplier disruptions: a case study in complex asset manufacturing," International Journal of Production Research, Taylor & Francis Journals, vol. 58(11), pages 3330-3341, June.
    9. Ivanov, Dmitry & Dolgui, Alexandre, 2021. "OR-methods for coping with the ripple effect in supply chains during COVID-19 pandemic: Managerial insights and research implications," International Journal of Production Economics, Elsevier, vol. 232(C).
    10. Nagurney, Anna, 2021. "Supply chain game theory network modeling under labor constraints: Applications to the Covid-19 pandemic," European Journal of Operational Research, Elsevier, vol. 293(3), pages 880-891.
    11. Dmitry Ivanov & Maxim Rozhkov, 2020. "Coordination of production and ordering policies under capacity disruption and product write-off risk: an analytical study with real-data based simulations of a fast moving consumer goods company," Annals of Operations Research, Springer, vol. 291(1), pages 387-407, August.
    12. Dmitry Ivanov, 2017. "Simulation-based ripple effect modelling in the supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 55(7), pages 2083-2101, April.
    13. Rameshwar Dubey & Angappa Gunasekaran & Stephen J. Childe & Samuel Fosso Wamba & David Roubaud & Cyril Foropon, 2021. "Empirical investigation of data analytics capability and organizational flexibility as complements to supply chain resilience," International Journal of Production Research, Taylor & Francis Journals, vol. 59(1), pages 110-128, January.
    14. Winkelhaus, S. & Grosse, E. H., 2020. "Logistics 4.0: a systematic review towards a new logistics system," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 118539, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    15. Wilson, Martha C., 2007. "The impact of transportation disruptions on supply chain performance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(4), pages 295-320, July.
    16. Sube Singh & Ramesh Kumar & Rohit Panchal & Manoj Kumar Tiwari, 2021. "Impact of COVID-19 on logistics systems and disruptions in food supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 59(7), pages 1993-2008, April.
    17. John R. Macdonald & Christopher W. Zobel & Steven A. Melnyk & Stanley E. Griffis, 2018. "Supply chain risk and resilience: theory building through structured experiments and simulation," International Journal of Production Research, Taylor & Francis Journals, vol. 56(12), pages 4337-4355, June.
    18. Ivanov, Dmitry, 2020. "Predicting the impacts of epidemic outbreaks on global supply chains: A simulation-based analysis on the coronavirus outbreak (COVID-19/SARS-CoV-2) case," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    19. Seyedmohsen Hosseini & Dmitry Ivanov & Alexandre Dolgui, 2020. "Ripple effect modelling of supplier disruption: integrated Markov chain and dynamic Bayesian network approach," International Journal of Production Research, Taylor & Francis Journals, vol. 58(11), pages 3284-3303, June.
    20. Govindan, Kannan & Mina, Hassan & Alavi, Behrouz, 2020. "A decision support system for demand management in healthcare supply chains considering the epidemic outbreaks: A case study of coronavirus disease 2019 (COVID-19)," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 138(C).
    21. Dmitry Ivanov & Ajay Das, 2020. "Coronavirus (COVID-19/SARS-CoV-2) and supply chain resilience: a research note," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 13(1), pages 90-102.
    22. El Baz, Jamal & Ruel, Salomée, 2021. "Can supply chain risk management practices mitigate the disruption impacts on supply chains’ resilience and robustness? Evidence from an empirical survey in a COVID-19 outbreak era," International Journal of Production Economics, Elsevier, vol. 233(C).
    23. Svoboda, Josef & Minner, Stefan & Yao, Man, 2021. "Typology and literature review on multiple supplier inventory control models," European Journal of Operational Research, Elsevier, vol. 293(1), pages 1-23.
    24. Alexandre Dolgui & Dmitry Ivanov & Maxim Rozhkov, 2020. "Does the ripple effect influence the bullwhip effect? An integrated analysis of structural and operational dynamics in the supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 58(5), pages 1285-1301, March.
    25. Dmitry Ivanov & Alexandre Dolgui & Boris Sokolov, 2019. "The impact of digital technology and Industry 4.0 on the ripple effect and supply chain risk analytics," International Journal of Production Research, Taylor & Francis Journals, vol. 57(3), pages 829-846, February.
    26. Li, Yuhong & Chen, Kedong & Collignon, Stephane & Ivanov, Dmitry, 2021. "Ripple effect in the supply chain network: Forward and backward disruption propagation, network health and firm vulnerability," European Journal of Operational Research, Elsevier, vol. 291(3), pages 1117-1131.
    27. Aldrighetti, Riccardo & Battini, Daria & Ivanov, Dmitry & Zennaro, Ilenia, 2021. "Costs of resilience and disruptions in supply chain network design models: A review and future research directions," International Journal of Production Economics, Elsevier, vol. 235(C).
    28. Chowdhury, Priyabrata & Paul, Sanjoy Kumar & Kaisar, Shahriar & Moktadir, Md. Abdul, 2021. "COVID-19 pandemic related supply chain studies: A systematic review," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 148(C).
    29. David Simchi-Levi & William Schmidt & Yehua Wei & Peter Yun Zhang & Keith Combs & Yao Ge & Oleg Gusikhin & Michael Sanders & Don Zhang, 2015. "Identifying Risks and Mitigating Disruptions in the Automotive Supply Chain," Interfaces, INFORMS, vol. 45(5), pages 375-390, October.
    30. Marc Füchtenhans & Eric H. Grosse & Christoph H. Glock, 2021. "Smart lighting systems: state-of-the-art and potential applications in warehouse order picking," International Journal of Production Research, Taylor & Francis Journals, vol. 59(12), pages 3817-3839, June.
    31. Lohmer, Jacob & Bugert, Niels & Lasch, Rainer, 2020. "Analysis of resilience strategies and ripple effect in blockchain-coordinated supply chains: An agent-based simulation study," International Journal of Production Economics, Elsevier, vol. 228(C).
    32. Dmitry Ivanov, 2018. "Structural Dynamics and Resilience in Supply Chain Risk Management," International Series in Operations Research and Management Science, Springer, number 978-3-319-69305-7, September.
    33. Dmitry Ivanov & Alexandre Dolgui, 2020. "Viability of intertwined supply networks: extending the supply chain resilience angles towards survivability. A position paper motivated by COVID-19 outbreak," International Journal of Production Research, Taylor & Francis Journals, vol. 58(10), pages 2904-2915, May.
    34. Schmitt, Thomas G. & Kumar, Sanjay & Stecke, Kathryn E. & Glover, Fred W. & Ehlen, Mark A., 2017. "Mitigating disruptions in a multi-echelon supply chain using adaptive ordering," Omega, Elsevier, vol. 68(C), pages 185-198.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cheramin, Meysam & Saha, Apurba Kumar & Cheng, Jianqiang & Paul, Sanjoy Kumar & Jin, Hongyue, 2021. "Resilient NdFeB magnet recycling under the impacts of COVID-19 pandemic: Stochastic programming and Benders decomposition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    2. Shafiee, Mohammad & Zare-Mehrjerdi, Yahia & Govindan, Kannan & Dastgoshade, Sohaib, 2022. "A causality analysis of risks to perishable product supply chain networks during the COVID-19 outbreak era: An extended DEMATEL method under Pythagorean fuzzy environment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    3. Jaller, Miguel & Pahwa, Anmol, 2022. "Assessing E-retailer’s Resilience During the COVID-19 Pandemic," Institute of Transportation Studies, Working Paper Series qt6k67k3zt, Institute of Transportation Studies, UC Davis.
    4. Teerasak Charoennapharat & Poti Chaopaisarn, 2022. "Factors Affecting Multimodal Transport during COVID-19: A Thai Service Provider Perspective," Sustainability, MDPI, vol. 14(8), pages 1-25, April.
    5. Luo, Na & Olsen, Tava & Liu, Yanping & Zhang, Abraham, 2022. "Reducing food loss and waste in supply chain operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 162(C).
    6. Ardekani, Zahra Fozouni & Sobhani, Seyed Mohammad Javad & Barbosa, Marcelo Werneck & de Sousa, Paulo Renato, 2023. "Transition to a sustainable food supply chain during disruptions: A study on the Brazilian food companies in the Covid-19 era," International Journal of Production Economics, Elsevier, vol. 257(C).
    7. Li, Guo & Xue, Jing & Li, Na & Ivanov, Dmitry, 2022. "Blockchain-supported business model design, supply chain resilience, and firm performance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    8. Zhang, Xuefeng & Li, Zhe & Li, Guo, 2023. "Impacts of blockchain-based digital transition on cold supply chains with a third-party logistics service provider," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
    9. Hashemi, Hossein & Rajabi, Reza & Brashear-Alejandro, Thomas G., 2022. "COVID-19 research in management: An updated bibliometric analysis," Journal of Business Research, Elsevier, vol. 149(C), pages 795-810.
    10. Juliet Orji, Ifeyinwa & Ojadi, Frank & Kalu Okwara, Ukoha, 2022. "The nexus between e-commerce adoption in a health pandemic and firm performance: The role of pandemic response strategies," Journal of Business Research, Elsevier, vol. 145(C), pages 616-635.
    11. Karmaker, Chitra Lekha & Bari, A.B.M. Mainul & Anam, Md. Zahidul & Ahmed, Tazim & Ali, Syed Mithun & de Jesus Pacheco, Diego Augusto & Moktadir, Md. Abdul, 2023. "Industry 5.0 challenges for post-pandemic supply chain sustainability in an emerging economy," International Journal of Production Economics, Elsevier, vol. 258(C).
    12. Liu, Ming & Liu, Zhongzheng & Chu, Feng & Dolgui, Alexandre & Chu, Chengbin & Zheng, Feifeng, 2022. "An optimization approach for multi-echelon supply chain viability with disruption risk minimization," Omega, Elsevier, vol. 112(C).
    13. Mohammadi, Mehrdad & Dehghan, Milad & Pirayesh, Amir & Dolgui, Alexandre, 2022. "Bi‐objective optimization of a stochastic resilient vaccine distribution network in the context of the COVID‐19 pandemic," Omega, Elsevier, vol. 113(C).
    14. Balezentis, Tomas & Zickiene, Agne & Volkov, Artiom & Streimikiene, Dalia & Morkunas, Mangirdas & Dabkiene, Vida & Ribasauskiene, Erika, 2023. "Measures for the viable agri-food supply chains: A multi-criteria approach," Journal of Business Research, Elsevier, vol. 155(PA).
    15. Barron, Yonit, 2022. "The continuous (S,s,Se) inventory model with dual sourcing and emergency orders," European Journal of Operational Research, Elsevier, vol. 301(1), pages 18-38.
    16. William Schueller & Christian Diem & Melanie Hinterplattner & Johannes Stangl & Beate Conrady & Markus Gerschberger & Stefan Thurner, 2022. "Propagation of disruptions in supply networks of essential goods: A population-centered perspective of systemic risk," Papers 2201.13325, arXiv.org.
    17. Ivanov, Dmitry, 2023. "Intelligent digital twin (iDT) for supply chain stress-testing, resilience, and viability," International Journal of Production Economics, Elsevier, vol. 263(C).
    18. Tsan-Ming Choi & Alexandre Dolgui & Dmitry Ivanov & Erwin Pesch, 2022. "OR and analytics for digital, resilient, and sustainable manufacturing 4.0," Annals of Operations Research, Springer, vol. 310(1), pages 1-6, March.
    19. Ahmed Zainul Abideen & Veera Pandiyan Kaliani Sundram & Shahryar Sorooshian, 2023. "Scope for Sustainable Development of Small Holder Farmers in the Palm Oil Supply Chain—A Systematic Literature Review and Thematic Scientific Mapping," Logistics, MDPI, vol. 7(1), pages 1-24, January.
    20. Rozhkov, Maxim & Ivanov, Dmitry & Blackhurst, Jennifer & Nair, Anand, 2022. "Adapting supply chain operations in anticipation of and during the COVID-19 pandemic," Omega, Elsevier, vol. 110(C).
    21. Pahwa, Anmol & Jaller, Miguel, 2023. "Assessing last-mile distribution resilience under demand disruptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 172(C).
    22. Hassan Younis & Malek Alsharairi & Hammad Younes & Balan Sundarakani, 2023. "The impact of COVID-19 on supply chains: systematic review and future research directions," Operational Research, Springer, vol. 23(3), pages 1-31, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rozhkov, Maxim & Ivanov, Dmitry & Blackhurst, Jennifer & Nair, Anand, 2022. "Adapting supply chain operations in anticipation of and during the COVID-19 pandemic," Omega, Elsevier, vol. 110(C).
    2. Dmitry Ivanov & Alexandre Dolgui, 2022. "Stress testing supply chains and creating viable ecosystems," Operations Management Research, Springer, vol. 15(1), pages 475-486, June.
    3. Ivanov, Dmitry, 2023. "Intelligent digital twin (iDT) for supply chain stress-testing, resilience, and viability," International Journal of Production Economics, Elsevier, vol. 263(C).
    4. Ivanov, Dmitry & Dolgui, Alexandre, 2021. "OR-methods for coping with the ripple effect in supply chains during COVID-19 pandemic: Managerial insights and research implications," International Journal of Production Economics, Elsevier, vol. 232(C).
    5. Aldrighetti, Riccardo & Battini, Daria & Ivanov, Dmitry & Zennaro, Ilenia, 2021. "Costs of resilience and disruptions in supply chain network design models: A review and future research directions," International Journal of Production Economics, Elsevier, vol. 235(C).
    6. Ivanov, Dmitry & Dolgui, Alexandre & Sokolov, Boris, 2022. "Cloud supply chain: Integrating Industry 4.0 and digital platforms in the “Supply Chain-as-a-Service”," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 160(C).
    7. Ramani, Vinay & Ghosh, Debabrata & Sodhi, ManMohan S., 2022. "Understanding systemic disruption from the Covid-19-induced semiconductor shortage for the auto industry," Omega, Elsevier, vol. 113(C).
    8. Dmitry Ivanov, 2022. "Viable supply chain model: integrating agility, resilience and sustainability perspectives—lessons from and thinking beyond the COVID-19 pandemic," Annals of Operations Research, Springer, vol. 319(1), pages 1411-1431, December.
    9. Ivanov, Dmitry, 2020. "Predicting the impacts of epidemic outbreaks on global supply chains: A simulation-based analysis on the coronavirus outbreak (COVID-19/SARS-CoV-2) case," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    10. Liu, Ming & Liu, Zhongzheng & Chu, Feng & Dolgui, Alexandre & Chu, Chengbin & Zheng, Feifeng, 2022. "An optimization approach for multi-echelon supply chain viability with disruption risk minimization," Omega, Elsevier, vol. 112(C).
    11. Queiroz, Maciel M. & Fosso Wamba, Samuel & Chiappetta Jabbour, Charbel Jose & Machado, Marcio C., 2022. "Supply chain resilience in the UK during the coronavirus pandemic: A resource orchestration perspective," International Journal of Production Economics, Elsevier, vol. 245(C).
    12. Brusset, Xavier & Ivanov, Dmitry & Jebali, Aida & La Torre, Davide & Repetto, Marco, 2023. "A dynamic approach to supply chain reconfiguration and ripple effect analysis in an epidemic," International Journal of Production Economics, Elsevier, vol. 263(C).
    13. Kedwadee Sombultawee & Pattama Lenuwat & Natdanai Aleenajitpong & Sakun Boon-itt, 2022. "COVID-19 and Supply Chain Management: A Review with Bibliometric," Sustainability, MDPI, vol. 14(6), pages 1-21, March.
    14. Li, Guo & Xue, Jing & Li, Na & Ivanov, Dmitry, 2022. "Blockchain-supported business model design, supply chain resilience, and firm performance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    15. Vimal K.E.K & Simon Peter Nadeem & Mahadharsan Ravichandran & Manavalan Ethirajan & Jayakrishna Kandasamy, 2022. "Resilience strategies to recover from the cascading ripple effect in a copper supply chain through project management," Operations Management Research, Springer, vol. 15(1), pages 440-460, June.
    16. Muhammad Umar Farooq & Amjad Hussain & Tariq Masood & Muhammad Salman Habib, 2021. "Supply Chain Operations Management in Pandemics: A State-of-the-Art Review Inspired by COVID-19," Sustainability, MDPI, vol. 13(5), pages 1-33, February.
    17. Zhao, Nanyang & Hong, Jiangtao & Lau, Kwok Hung, 2023. "Impact of supply chain digitalization on supply chain resilience and performance: A multi-mediation model," International Journal of Production Economics, Elsevier, vol. 259(C).
    18. Aldrighetti, Riccardo & Battini, Daria & Ivanov, Dmitry, 2023. "Efficient resilience portfolio design in the supply chain with consideration of preparedness and recovery investments," Omega, Elsevier, vol. 117(C).
    19. Rinaldi, Marta & Bottani, Eleonora, 2023. "How did COVID-19 affect logistics and supply chain processes? Immediate, short and medium-term evidence from some industrial fields of Italy," International Journal of Production Economics, Elsevier, vol. 262(C).
    20. Papanagnou, Christos & Seiler, Andreas & Spanaki, Konstantina & Papadopoulos, Thanos & Bourlakis, Michael, 2022. "Data-driven digital transformation for emergency situations: The case of the UK retail sector," International Journal of Production Economics, Elsevier, vol. 250(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:152:y:2021:i:c:s1366554521001794. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.