Protection of Supply Chain Against Disruption

Yan Jinyi

Abstract

With the development of a globalized economy, the impact of supply chain stability on national security and the well-being of the population has become increasingly evident. However, supply chains are exposed to multiple risks such as natural disasters, political conflicts, economic sanctions and cyber attacks. The aim of this paper is to construct a mathematical model based on network interdiction theory to identify and protect critical components in supply chains. Through the bi-objective optimization of minimizing the maximum flow of the network and the cost of interdiction, this paper proposes a weighting method to solve the Pareto-optimal solution, so as to find the best interdiction solution under different preferences. Taking the smartwatch supply chain network of Company A as an example, this paper analyzes the identification of key components and puts forward corresponding supply chain management optimization suggestions. The research results show that the resilience and anti-interference ability of the supply chain can be significantly improved and the loss caused by potential risks can be reduced through effective identification and management of critical components, which is of great significance for both theory and practice.