EURO 2024 Copenhagen
Abstract Submission

EURO-Online login

2721. Learning the effects of different buffering strategies in supply chain risk management: A regression approach

Invited abstract in session WA-24: Sustainable Supply Chain Management, stream Sustainable Supply Chains.

Wednesday, 8:30-10:00
Room: 83 (building: 116)

Authors (first author is the speaker)

1. Emre Kara
IE & IS, Eindhoven University of Technology
2. Ali Tamer Unal
Industrial Engineering, Bogazici University

Abstract

In today's globalized world, supply chains have global characteristics as well. Instead of geographically separated supply chains, there exists a global single supply chain in the world. Because of this circumstance, disruptions even at geographically distant locations can have severe impacts on all businesses globally. This nature of business increases the importance of supply chain risk management (SCRM) more than ever. Manufacturing plants require accurate tools to measure and manage risks effectively and profitably. In this study, an enhancement to Material Requirements Planning (MRP) type production planning is proposed such that supply chain risk can be measured precisely and risk management policies can be developed accordingly. Initially, supply chain disruptions are defined and categorized and buffers used against these uncertainties are introduced to the MRP optimization model. With this new model and a risk function defined in terms of backlogs, an SCRM framework in the form of buffer management is proposed. Afterwards, the performance of the model with different settings is observed with simulation experiments and the statistical analysis is conducted on the data. Although the most significant buffering policy was found to be the supplier lead times, many findings were discovered on the effects of buffers on the supply chain (SC) risk and the profitability of the business.

Keywords

Status: accepted

Back to the list of papers