Graduate Thesis Or Dissertation
 

A Quantitative Analysis of Simultaneous Supply and Demand Disruptions on a Multi-Echelon Supply Chain

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https://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/mg74qt39n

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  • Modern supply chains have grown to be far more complex than their predecessors, as global trade and accessibility have opened avenues of trade that were previously impossible. As such, the inherent risk of internal and/or external disruptions impacting the performance of a supply chain has also grown due to the interconnectivity of industries throughout the world. Because of the widespread severity of the COVID-19 pandemic, companies have shifted their perspective to viewing disruption risk protection as a necessity. As companies begin to invest further resources in their supply chains, it is important for them to understand how different disruptions and potential mitigation strategies could impact the performance of their supply chains. In response to this need, this research aimed to uncover how different supply and demand disruption features impact the performance of a multi-echelon supply chain. To accomplish this goal, a discrete-event simulation model was developed in ARENA and a full factorial designed experiment was conducted to understand how different disruption characteristics affect the key performance metrics of a multi-echelon supply chain. Historical supply chain data was obtained for a four-echelon supply chain owned by a single company that operated under the guaranteed service model (GSM) inventory policy. Finally, analysis of variance (ANOVA) was used to derive insights from the results of the designed experiment. This research revealed several key insights about supply chain behavior during simultaneous supply and demand disruptions. For example, it was found that the severity of a demand disruption (i.e., the level of demand spike) had considerable impact on the performance of the supply chain during the disruption period. In addition, disruptions which occurred further upstream in the supply chain were more likely to experience performance decreases in the post-disruption period compared to other disruptions. It was also found that additional inventory could be expected to accumulate at a disrupted node which, in turn, resulted in inventory reductions immediately upstream of the disrupted node.
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  • Pending Publication
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  • 2021-09-14 to 2022-10-15

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