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Designing a Resilient and Sustainable Logistics Network under Epidemic Disruptions and Demand Uncertainty

Author

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  • Aymen Aloui

    (Laboratory of Innovative Technology (LTI, EA 3899), University of Picardie Jules Verne, 80025 Amiens, France)

  • Nadia Hamani

    (Laboratory of Innovative Technology (LTI, EA 3899), University of Picardie Jules Verne, 80025 Amiens, France)

  • Laurent Delahoche

    (Laboratory of Innovative Technology (LTI, EA 3899), University of Picardie Jules Verne, 80025 Amiens, France)

Abstract

To face the new challenges caused by modern industry, logistics operations managers need to focus more on integrating sustainability goals, adapt to unexpected disruptions and find new strategies and models for logistics management. The COVID-19 pandemic has proven that unforeseen fragilities, negatively affecting the supply chain performance, can arise rapidly, and logistics systems may confront unprecedented vulnerabilities regarding network structure disruption and high demand fluctuations. The existing studies on a resilient logistics network design did not sufficiently consider sustainability aspects. In fact, they mainly addressed the independent planning of decision-making problems with economic objectives. To fill this research gap, this paper concentrates on the design of resilient and sustainable logistics networks under epidemic disruption and demand uncertainty. A two-stage stochastic mixed integer programming model is proposed to integrate key decisions of location–allocation, inventory and routing planning. Moreover, epidemic disruptions and demand uncertainty are incorporated through plausible scenarios using a Monte Carlo simulation. In addition, two resiliency strategies, namely, capacity augmentation and logistics collaboration, are included into the basic model in order to improve the resilience and the sustainability of a logistics chain network. Finally, numerical examples are presented to validate the proposed approach, evaluate the performance of the different design models and provide managerial insights. The obtained results show that the integration of two design strategies improves resilience and sustainability.

Suggested Citation

  • Aymen Aloui & Nadia Hamani & Laurent Delahoche, 2021. "Designing a Resilient and Sustainable Logistics Network under Epidemic Disruptions and Demand Uncertainty," Sustainability, MDPI, vol. 13(24), pages 1-22, December.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:24:p:14053-:d:706637
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    References listed on IDEAS

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    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. Sadok Turki & Nidhal Rezg, 2018. "Impact of the Quality of Returned-Used Products on the Optimal Design of a Manufacturing/Remanufacturing System under Carbon Emissions Constraints," Sustainability, MDPI, vol. 10(9), pages 1-21, September.
    3. Sharma, Amalesh & Adhikary, Anirban & Borah, Sourav Bikash, 2020. "Covid-19′s impact on supply chain decisions: Strategic insights from NASDAQ 100 firms using Twitter data," Journal of Business Research, Elsevier, vol. 117(C), pages 443-449.
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    Cited by:

    1. Jahani, Hamed & Abbasi, Babak & Sheu, Jiuh-Biing & Klibi, Walid, 2024. "Supply chain network design with financial considerations: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 312(3), pages 799-839.

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