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How does the trust affect the topology of supply chain network and its resilience? An agent-based approach

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  • Hou, Yunzhang
  • Wang, Xiaoling
  • Wu, Yenchun Jim
  • He, Peixu

Abstract

This paper builds a dynamic supply chain network, where firms can select suppliers according to the trust, the selling price or just randomly. Simulation results show that the trust-based rule can significantly increase the aggregated working capital and decrease firm's likelihoods of bankruptcy. Moreover, firms' sizes under trust-based and price-based rules follow power-law distributions. The degree distribution of supply chain network under price-based rule follows a power-law distribution, while those under trust-based and randomly-choosing rules are similar to that of random network. Furthermore, results also indicate that trust-based rule is the most robust one against random and targeted disruptions.

Suggested Citation

  • Hou, Yunzhang & Wang, Xiaoling & Wu, Yenchun Jim & He, Peixu, 2018. "How does the trust affect the topology of supply chain network and its resilience? An agent-based approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 116(C), pages 229-241.
    • Handle: RePEc:eee:transe:v:116:y:2018:i:c:p:229-241
    DOI: 10.1016/j.tre.2018.07.001
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    11. Wang, Jiepeng & Zhou, Hong & Sun, Xinlei & Yuan, Yufei, 2023. "A novel supply chain network evolving model under random and targeted disruptions," Chaos, Solitons & Fractals, Elsevier, vol. 170(C).
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    13. Miguel-Josué Heredia-Roldán & Damián-Emilio Gibaja-Romero & José-Luis Martínez-Flores & Santiago-Omar Caballero-Morales, 2019. "The impact of trust in the strategic decisions of a decentralized supply chain," OPSEARCH, Springer;Operational Research Society of India, vol. 56(3), pages 757-779, September.
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    17. Jianhua Yang & Yuying Liu & Yajun Jia, 2022. "Influence of Trust Relationships with Suppliers on Manufacturer Resilience in COVID-19 Era," Sustainability, MDPI, vol. 14(15), pages 1-23, July.
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    20. K. Katsaliaki & P. Galetsi & S. Kumar, 2022. "Supply chain disruptions and resilience: a major review and future research agenda," Annals of Operations Research, Springer, vol. 319(1), pages 965-1002, December.

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