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An analysis of the ripple effect for disruptions occurring in circular flows of a supply chain network

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  • Young Woong Park
  • Jennifer Blackhurst
  • Chinju Paul
  • Kevin P. Scheibe

Abstract

This paper examines the ripple effect in supply chains due to circular flows embedded in supply chain design. Although supply chains are complex and nonlinear, circular flows exist in real-world supply chains but are often unknown or hidden to supply chain managers. These circular flows exist when a Tier 2 supplier is also a Tier 3 (or higher) supplier in the supply chain network. Additionally, a circular network can occur when a supplier is also a customer in the same network. In the presence of these types of supply chain network structures, supply chains may experience a ripple effect (or disruption propagation) in which disruptions impact supply chain performance. Using a real-world supply chain structure, we examine the effect of circular flows on the ripple effect and identify how this influences the supply chain’s resilience to disruptions. We offer managers and researchers insights that improve the understanding of how circular flows exacerbate the ripple effect.

Suggested Citation

  • Young Woong Park & Jennifer Blackhurst & Chinju Paul & Kevin P. Scheibe, 2022. "An analysis of the ripple effect for disruptions occurring in circular flows of a supply chain network," International Journal of Production Research, Taylor & Francis Journals, vol. 60(15), pages 4693-4711, August.
    • Handle: RePEc:taf:tprsxx:v:60:y:2022:i:15:p:4693-4711
    DOI: 10.1080/00207543.2021.1934745
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    Cited by:

    1. Giovanna Culot & Matteo Podrecca & Guido Nassimbeni & Guido Orzes & Marco Sartor, 2023. "Using supply chain databases in academic research: A methodological critique," Journal of Supply Chain Management, Institute for Supply Management, vol. 59(1), pages 3-25, January.
    2. Vukašin Pajić & Milorad Kilibarda & Milan Andrejić, 2023. "A Novel Hybrid Approach for Evaluation of Resilient 4PL Provider for E-Commerce," Mathematics, MDPI, vol. 11(3), pages 1-26, January.
    3. Ming-Xing Xu & Shu Li & Li-Lin Rao & Lei Zheng, 2023. "The Relationship between Distance and Risk Perception in Multi-Tier Supply Chain: The Psychological Typhoon Eye Effect," Sustainability, MDPI, vol. 15(9), pages 1-25, May.

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