IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v290y2025ics0925527325002762.html

Bilevel joint optimization for product design changes with a resilient supply chain based on deep reinforcement learning

Author

Listed:
  • Ma, Yujie
  • Xia, Xin
  • Liu, Peiyao
  • Zhang, Chen

Abstract

High-tech supply chains are complex and capital-intensive, making them highly vulnerable to disruptions such as the COVID-19 pandemic and rising geopolitical tensions. Traditional risk management strategies — such as securing backup suppliers and stockpiling inventory — have revealed their limitations. In contrast, integrating product design change (PDC) strategies enables supply chains to adapt and restructure more flexibly, thereby enhancing resilience. This study emphasizes the critical interplay between PDC and resilient supply chains (RSC), proposing a design scheme that integrates both. Because PDC and RSC involve distinct decision-makers with hierarchical decision structures, we further construct a bilevel joint optimization (BJO) framework grounded in a Stackelberg game. To capture this dynamic, a novel bilevel 0–1 nonlinear programming model is formulated, and a bilevel deep reinforcement learning (DRL) algorithm is developed to solve it. The proposed DRL approach effectively handles multi-dimensional discrete decision variables and complex constraints. We conduct case studies on the smartphone industry. Comparative experiments reveal that the proposed BJO framework significantly outperforms traditional approaches. Moreover, our bilevel DRL algorithm achieves better results than conventional DRL and heuristic methods. Results from resilience-oriented experiments confirm that integrating both resilience and product design into supply chain activities significantly influences RSC decisions, thereby contributing to enterprise risk mitigation. We further conduct a sensitivity analysis on composite utility, design tolerance, and manufacturing adaptability tolerance parameters. The results show that changes in these parameters substantially affect the objectives of the decision-makers. Based on these findings, we offer practical managerial insights to guide real-world implementation.

Suggested Citation

  • Ma, Yujie & Xia, Xin & Liu, Peiyao & Zhang, Chen, 2025. "Bilevel joint optimization for product design changes with a resilient supply chain based on deep reinforcement learning," International Journal of Production Economics, Elsevier, vol. 290(C).
  • Handle: RePEc:eee:proeco:v:290:y:2025:i:c:s0925527325002762
    DOI: 10.1016/j.ijpe.2025.109791
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527325002762
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ijpe.2025.109791?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

    for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. Yang, Dong & Jiao, Jianxin (Roger) & Ji, Yangjian & Du, Gang & Helo, Petri & Valente, Anna, 2015. "Joint optimization for coordinated configuration of product families and supply chains by a leader-follower Stackelberg game," European Journal of Operational Research, Elsevier, vol. 246(1), pages 263-280.
    3. Naghshineh, Bardia & Carvalho, Helena, 2022. "The implications of additive manufacturing technology adoption for supply chain resilience: A systematic search and review," International Journal of Production Economics, Elsevier, vol. 247(C).
    4. Dmitry Ivanov, 2024. "Two views of supply chain resilience," International Journal of Production Research, Taylor & Francis Journals, vol. 62(11), pages 4031-4045, June.
    5. A. Gürhan Kök & Marshall L. Fisher, 2007. "Demand Estimation and Assortment Optimization Under Substitution: Methodology and Application," Operations Research, INFORMS, vol. 55(6), pages 1001-1021, December.
    6. Massimo Pizzol, 2015. "Life Cycle Assessment and the Resilience of Product Systems," Journal of Industrial Ecology, Yale University, vol. 19(2), pages 296-306, April.
    7. Sinha, Ankur & Malo, Pekka & Deb, Kalyanmoy, 2017. "Evolutionary algorithm for bilevel optimization using approximations of the lower level optimal solution mapping," European Journal of Operational Research, Elsevier, vol. 257(2), pages 395-411.
    8. Leyuan Shi & Sigurdur Ólafsson & Qun Chen, 2001. "An Optimization Framework for Product Design," Management Science, INFORMS, vol. 47(12), pages 1681-1692, December.
    9. Nitish Jain & Karan Girotra & Serguei Netessine, 2022. "Recovering Global Supply Chains from Sourcing Interruptions: The Role of Sourcing Strategy," Manufacturing & Service Operations Management, INFORMS, vol. 24(2), pages 846-863, March.
    10. Benoît Colson & Patrice Marcotte & Gilles Savard, 2007. "An overview of bilevel optimization," Annals of Operations Research, Springer, vol. 153(1), pages 235-256, September.
    11. Shenglong Zhou & Alain B. Zemkoho & Andrey Tin, 2020. "BOLIB: Bilevel Optimization LIBrary of Test Problems," Springer Optimization and Its Applications, in: Stephan Dempe & Alain Zemkoho (ed.), Bilevel Optimization, chapter 0, pages 563-580, Springer.
    12. Aghajani, Mojtaba & Ali Torabi, S. & Altay, Nezih, 2023. "Resilient relief supply planning using an integrated procurement-warehousing model under supply disruption," Omega, Elsevier, vol. 118(C).
    13. Erjie Ang & Dan A. Iancu & Robert Swinney, 2017. "Disruption Risk and Optimal Sourcing in Multitier Supply Networks," Management Science, INFORMS, vol. 63(8), pages 2397-2419, August.
    14. Fontaine, Pirmin & Minner, Stefan, 2014. "Benders Decomposition for Discrete–Continuous Linear Bilevel Problems with application to traffic network design," Transportation Research Part B: Methodological, Elsevier, vol. 70(C), pages 163-172.
    15. Marc Helmold & Ayşe Küçük Yılmaz & Tracy Dathe & Triant G. Flouris, 2022. "SCRM in the Automotive Industry: AutoSCRM," Management for Professionals, in: Supply Chain Risk Management, chapter 10, pages 221-254, Springer.
    16. M. E. Sharp & T. D. Hedberg & W. Z. Bernstein & S. Kwon, 2021. "Feasibility study for an automated engineering change process," International Journal of Production Research, Taylor & Francis Journals, vol. 59(16), pages 4995-5010, August.
    17. Angappa Gunasekaran & Nachiappan Subramanian & Shams Rahman, 2015. "Supply chain resilience: role of complexities and strategies," International Journal of Production Research, Taylor & Francis Journals, vol. 53(22), pages 6809-6819, November.
    18. Amine Belhadi & Venkatesh Mani & Sachin S. Kamble & Syed Abdul Rehman Khan & Surabhi Verma, 2024. "Artificial intelligence-driven innovation for enhancing supply chain resilience and performance under the effect of supply chain dynamism: an empirical investigation," Annals of Operations Research, Springer, vol. 333(2), pages 627-652, February.
    19. Haixiang Zhang & Zeyu Zheng & Javad Lavaei, 2023. "Gradient-Based Algorithms for Convex Discrete Optimization via Simulation," Operations Research, INFORMS, vol. 71(5), pages 1815-1834, September.
    20. Hassan Qudrat-Ullah, 2025. "Mastering Decision-Making in Business and Personal Life," Springer Books, Springer, number 978-3-031-81068-8, December.
    21. Ruimeng Li & Hao Yi & Huajun Cao, 2022. "Towards understanding dynamic design change propagation in complex product development via complex network approach," International Journal of Production Research, Taylor & Francis Journals, vol. 60(9), pages 2733-2752, May.
    22. 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.
    23. Byeongmok Kim & Jong Gwang Kim & Seokcheon Lee, 2024. "A multi-agent reinforcement learning model for inventory transshipments under supply chain disruption," IISE Transactions, Taylor & Francis Journals, vol. 56(7), pages 715-728, July.
    24. Benjamin R. Tukamuhabwa & Mark Stevenson & Jerry Busby & Marta Zorzini, 2015. "Supply chain resilience: definition, review and theoretical foundations for further study," International Journal of Production Research, Taylor & Francis Journals, vol. 53(18), pages 5592-5623, September.
    25. Yimin Wang & Scott Webster, 2022. "Product Flexibility Strategy Under Supply and Demand Risk," Manufacturing & Service Operations Management, INFORMS, vol. 24(3), pages 1779-1795, May.
    26. 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).
    Full references (including those not matched with items on IDEAS)

    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. Cheng, Dongshu & Wei, Ying & Zhang, Mengchen & Wang, Chang, 2025. "The smart city pilot policy and corporate supply chain resilience," International Review of Economics & Finance, Elsevier, vol. 102(C).
    2. 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.
    3. Dmitry Ivanov, 2026. "Collaborative emergency adaptation for ripple effect mitigation in intertwined supply networks," Annals of Operations Research, Springer, vol. 359(2), pages 1727-1743, April.
    4. Liu, Ming & Ding, Yueyu & Chu, Feng & Dolgui, Alexandre & Zheng, Feifeng, 2024. "Robust actions for improving supply chain resilience and viability," Omega, Elsevier, vol. 123(C).
    5. Ivanov, Dmitry, 2024. "Supply chain resilience: Conceptual and formal models drawing from immune system analogy," Omega, Elsevier, vol. 127(C).
    6. Broekaert, Jan B. & Hafiz, Faizal & Jayaraman, Raja & La Torre, Davide, 2025. "Managing resilience and viability of supranational supply chains under epidemic control scenarios," Omega, Elsevier, vol. 133(C).
    7. Richards, Timothy, 2025. "Market Concentration and Resilience in Agricultural Supply Chains," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 361139, Agricultural and Applied Economics Association.
    8. Mosayebi, Mohsen & Fathi, Michel & Hedayati, Mehrnaz Khalaj & Ivanov, Dmitry, 2024. "Time-to-Adapt (TTA)," International Journal of Production Economics, Elsevier, vol. 278(C).
    9. Antoniou, Margarita & Sinha, Ankur & Papa, Gregor, 2024. "δ-perturbation of bilevel optimization problems: An error bound analysis," Operations Research Perspectives, Elsevier, vol. 13(C).
    10. Li, Qingying & Zhu, Shuo & Choi, Tsan-Ming & Shen, Bin, 2025. "Maintaining E-commerce supply chain viability: Addressing supply risks with a strategic live-streaming channel," Omega, Elsevier, vol. 133(C).
    11. Dmitry Ivanov & Boris Sokolov, 2019. "Simultaneous structural–operational control of supply chain dynamics and resilience," Annals of Operations Research, Springer, vol. 283(1), pages 1191-1210, December.
    12. Ron Berger & Ralf Wagner & Paul M. Dion & Olga Matthias, 2025. "Disrupting disruptions: enhancing supply chain resilience—lessons from the US Air Force," Annals of Operations Research, Springer, vol. 347(3), pages 1163-1192, April.
    13. 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).
    14. Dixit, Vijaya & Verma, Priyanka & Tiwari, Manoj Kumar, 2020. "Assessment of pre and post-disaster supply chain resilience based on network structural parameters with CVaR as a risk measure," International Journal of Production Economics, Elsevier, vol. 227(C).
    15. Bai, Xuan & Zhou, Kevin Zheng & Jiang, Wei & Li, Yongqiang & Chen, Xin, 2025. "Smart manufacturing and supply chain resilience: Evidence from an emerging market," Journal of Business Research, Elsevier, vol. 196(C).
    16. Betto, Frida & Garengo, Patrizia, 2023. "A circular pathway for developing resilience in healthcare during pandemics," International Journal of Production Economics, Elsevier, vol. 266(C).
    17. Aghajani, Mojtaba & Ali Torabi, S. & Altay, Nezih, 2023. "Resilient relief supply planning using an integrated procurement-warehousing model under supply disruption," Omega, Elsevier, vol. 118(C).
    18. Zhou, Donghua & Yang, Yuanyuan & Zhao, Yujie, 2025. "Social credit and supply chain resilience: Insights from China's social credit system construction," International Review of Financial Analysis, Elsevier, vol. 107(C).
    19. Wu, Meng & Zhang, Jiawei & Chen, Xin, 2025. "Managing supply disruptions for risk-averse buyers: Diversified sourcing vs. disruption prevention," Omega, Elsevier, vol. 131(C).
    20. Emilia Vann Yaroson & Soumyadeb Chowdhury & Sachin Kumar Mangla & Prasanta Kumar Dey, 2024. "Unearthing the interplay between organisational resources, knowledge and industry 4.0 analytical decision support tools to achieve sustainability and supply chain wellbeing," Annals of Operations Research, Springer, vol. 342(2), pages 1321-1368, November.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:proeco:v:290:y:2025:i:c:s0925527325002762. 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/locate/ijpe .

    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.