Which Node of Supply Chain Suffers Mostly to Disruption in the Pandemic?

NGUYEN,, T. T. B. (2021). Which Node of Supply Chain Suffers Mostly to Disruption in the Pandemic?. The Journal of Distribution Science, 19(11), 59-68, https://doi.org/https://doi.org/10.15722/jds.19.11.202111.59

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Abstract

Purpose: The Covid-19 pandemic has had excessively severe impacts on all the nodes and edges of any supply chain due to changes in consumer behaviours and lockdown restrictions from governments among countries. This article aims to provide a simulating experiment on how a supply chain deals with supply disruption risks by flexibility in the inventory level of each sector as a buffer considering the overall cost to fulfil demand in the market. Research design, data and methodology: Agent-based simulation techniques are used to determine the cost-efficiency and customer waiting time related to varying inventory levels of each member in the supply chain when using inventory buffers. Findings: This study has shown that any sudden changes in the inventory level of each sector are likely to impact the rest of the supply chain. Among all sectors, the wholesaler will be impacted more severely than others. Also, the manufacturing sector is the most suitable node to adjust inventory depending on its manufacturing ability. Conclusion: The findings of the study provide insightful implications for decision-makers to adjust inventory levels and policymakers to maintain manufacturing activities in the context of the pandemic restrictions to deal with the excessive demand and potential supply disruption risks.

keywords: Agent-based Modelling, Supply Disruption, Inventory Management, Simulation Experiment

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Article Contents

Vol.19 No.11

Which Node of Supply Chain Suffers Mostly to Disruption in the Pandemic?

Abstract

Reference

The Journal of Distribution Science