An Integrated Systems Apporach for Design of Resilient Supply Chain

Meng Yue

Abstract

This paper introduced an integrated system approach to the design of resilient supply chain. The assessment of resilience in this paper considers system recovery time, recovery level, vulnerabilities, capabilities, as well as the matching between the two. Firstly, an integer programming model is developed to help the decision maker to allocate resources for capability development. The model could be used to find the optimal solution which gives the set of capabilities to be developed. On the other hand, the model could also provide a few solutions, and the decision maker could then perform cost benefit analysis and choose the more desired solution. Secondly, a fuzzy AHP model is developed for supplier selection. The model takes vulnerability and capability as two main criteria, and the hierarchy structure can be further customized by adding in sub-criteria for each vulnerability and capability, according to the need of the company. The AHP model would then select one best supplier for the company based on the criteria provided. The integrated approach proposed would allow the decision maker to systematically build a resilience supply chain.