Adapting to Disruptions: Flexibility as a Pillar of Supply Chain Resilience

Fuente: arXiv
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Hauptverfasser: Amico, Ambra, Verginer, Luca, Casiraghi, Giona, Vaccario, Giacomo, Schweitzer, Frank
Format: Preprint
Veröffentlicht: 2023
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_version_ 1866929220614094848
author Amico, Ambra
Verginer, Luca
Casiraghi, Giona
Vaccario, Giacomo
Schweitzer, Frank
author_facet Amico, Ambra
Verginer, Luca
Casiraghi, Giona
Vaccario, Giacomo
Schweitzer, Frank
contents Supply chain disruptions cause shortages of raw material and products. To increase resilience, i.e., the ability to cope with shocks, substituting goods in established supply chains can become an effective alternative to creating new distribution links. We demonstrate its impact on supply deficits through a detailed analysis of the US opioid distribution system. Reconstructing 40 billion empirical distribution paths, our data-driven model allows a unique inspection of policies that increase the substitution flexibility. Our approach enables policymakers to quantify the trade-off between increasing flexibility, i.e., reduced supply deficits, and increasing complexity of the supply chain, which could make it more expensive to operate.
format Preprint
id arxiv_https___arxiv_org_abs_2304_05290
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle Adapting to Disruptions: Flexibility as a Pillar of Supply Chain Resilience
Amico, Ambra
Verginer, Luca
Casiraghi, Giona
Vaccario, Giacomo
Schweitzer, Frank
General Economics
Economics
Social and Information Networks
Supply chain disruptions cause shortages of raw material and products. To increase resilience, i.e., the ability to cope with shocks, substituting goods in established supply chains can become an effective alternative to creating new distribution links. We demonstrate its impact on supply deficits through a detailed analysis of the US opioid distribution system. Reconstructing 40 billion empirical distribution paths, our data-driven model allows a unique inspection of policies that increase the substitution flexibility. Our approach enables policymakers to quantify the trade-off between increasing flexibility, i.e., reduced supply deficits, and increasing complexity of the supply chain, which could make it more expensive to operate.
title Adapting to Disruptions: Flexibility as a Pillar of Supply Chain Resilience
topic General Economics
Economics
Social and Information Networks
url https://arxiv.org/abs/2304.05290