Description
A fail-safe supply network is designed to mitigate the impact of variations and disruptions on people and corporations. This is achieved by (1) developing a network structure to mitigate the impact of disruptions that distort the network structure and (2) planning flow through the network to neutralize the effects of variations.
In this monograph, we propose a framework, develop mathematical models and provide examples of fail-safe supply network design. We show that, contrary to current thinking as embodied in the supply network literature, disruption management decisions made at the strategic network design level are not independent from variation management decisions made at the operational level. Accordingly, we suggest that it is beneficial to manage disruptions and variations concurrently in supply networks. This is achieved by architecting fail-safe supply networks, which are characterized by the following elements: reliability, robustness, flexibility, structural controllability, and resilience.
Organizations can use the framework presented in this monograph to manage variations and disruptions. Managers can select the best operational management strategies for their supply networks considering variations in supply and demand, and identify the best network restoration strategies including facility fortification, backup inventory, flexible production capacity, flexible inventory, and transportation route reconfiguration. The framework is generalizable to other complex engineered networks.
Table of Contents
1 Conception of Fail-Safe Supply Networks
Introduction: Networks and the power of connections
Challenges facing supply networks and the importance of risk management
An architecture for Fail-safe networks
Organization of the monograph
Definitions of terms used
Closing Remarks
2 Variation Management in a Single Forward Supply Chain
Importance of Variation Management in Supply Chains
Literature of Variation Management in Supply Chains
Our Contribution to the Supply Chain Literature
Operations and Variation in a Supply Chain
Mathematical Model of Reliable Production Planning throughout the Supply Chain
Solution for the Supply Chain's Reliable Production Planning Model
Computational Results
Closing Remarks
References
3 Variation Management in Pre- and After-Sales Supply Chains of Non-Repairable Products
Importance of the After-sales Supply Chains for Products with Non-Repairable Components
Literature of the After-sales Operations for Products with Non-Repairable Components
Literature of Variation in the After-sales Operations of Products with Non-Repairable Components
Our Contributions to the After-sales Operations of Products with Non-Repairable Components
Problem Description
Mathematical Model
Solution Approach
Results and Discussions
Closing Remarks
References
Appendix 3.A: Proofs of lemmas
Appendix 3.B: After-sales demand prediction
Appendix 3.C: Linearization of model
4 Variation Management in the Product-Service Supply Chains of Repairable Products
Importance of After-sales Supply Chains for Repairable Products
Literature of After-sales Operations
Our Contribution to the Literature of After-sales Supply Chains for Repairable Products
Problem Description: Operations and Variations in the Forward and After-sales Supply Chains of Repairable Products
Mathematical Model for Concurrent Flow planning in the Forward and After-sales Supply Chains of Repairable Products
Solution Approach
Computational Results
Closing Remarks
References
Appendix 4.A: Assumptions of the problem
Appendix 4.B: Notation
Appendix 4.C: After-sales demand in each sales period
Appendix 4.D: Model linearization
5 Variation Management in Supply NetworksReliable Flow Planning in Supply Networks
Literature in the After-sales Operations
Operations and Variations in Supply Networks
Path Concepts in Supply Networks
Variation Management in the Pre-sales Supply Network
Variation Management in the After-sales Supply Network
Concurrent flow planning in the pre- and after-sales supply networks
Solution Approach
Numerical Analysis
Closing Remarks
References
Appendix 5.A: Notations used in this chapter
Appendix 5.B: Flowchart for the solution algorithm developed in Section 5.8
6 Disruption Management using Robust Design in Supply Networks
Disruptions in Supply Networks: Robustness, Structural Controllability, and Resilience in Supply Network Design
Disruption Management in Supply Networks Literature
Disruption Management using Robust Design Modeling
Supply Network Modeling for Designing Power Grid Networks under Disruptions
Power Grid Supply Network Modeling under Disruptions
Power Grid Supply Network Example: A Regional Electric Company
Results and Discussions: Power Grid Supply Network Modeling under Disruptions
Closing Remarks
Acknowledgment
Reference
Index
7 Structural Controllability in Managing Disruptions in Supply Networks
Introduction: Structural Controllability in Supply Networks
Structural Controllability in the Literature
Controllability Vs. Structural Controllability in Supply Networks
Functions of Structural Controllability in Supply Networks
Implementation of Structural Controllability in Supply Networks
Computational Results of the Proposed Model
Three-stage proposed model for managing disruptions
Closing Remarks
References
Index
8 Disruption Management: Resilience Design of Structurally Controllable Supply Networks
Introduction: Disruption Management in Supply Networks
Significance of Resilience in Designing Structurally Controllable Supply Networks
Resilience Analysis and Restoration Strategies
Three-stage model for managing disruptions
Petroleum Industry Example of Supply Networks under Disruptions
Computational Results for Resilient Design of Structural Controllable Supply Networks
Closing Remarks
References
Appendix 8-A: Stage One Mathematical Formulation
Appendix 8-B: Stage Two Mathematical Formulation
Index
9 Concurrent Management of Disruptions and Variations
Variations and Disruptions in Supply Networks
Disruption and Variation Management in Supply Networks Literature
Our Contributions to the Supply Network Literature
Problem Description
Variation Management
Disruption management
Closing Remarks
Appendix 9.A: Notation of the model
Appendix 9.B: Linearizing Approach
Appendix 9.C: Computational Times
Appendix 9.D: Fubini’s Theorem
Appendix 9.E: BM Value
10 Emerging Technologies and Extension of the Fail-Safe Framework to Other Networks
Summary of Contributions
Emerging Technologies for Designing Fail-Safe Networked Systems
Open Research Challenges
Beyond supply chains – towards "engineered networks" – to fail-safe networks in other industries
Closing Comments
References
