The Effect of COVID-19 Pandemic on the Global Supply Chain Operations: A System Dynamics Approach

2022 ◽  
pp. 001573252110609
Author(s):  
Mojtaba Hajian Heidary
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Production Capacity ◽  
Global Supply Chain ◽  
Global Features ◽  
Jel Codes ◽  
Force Majeure ◽  
Endogenous Variables ◽  
Chain Force ◽  
The Impact

Epidemic outbreaks are one of the important sources of the risk in the global supply chains. Before the COVID-19 pandemic, global industries that were unprepared for disruptions experienced a decline due to the pandemic. A global supply chain is a complex system set of dynamics that could be analyzed by the system dynamics approach. In this article, the impact of the recent pandemic on the global supply chain is simulated in different scenarios. A system dynamic model is developed to carry out the simulations. In order to consider the impact of the pandemic on the exogenous and endogenous variables, a force majeure factor is defined in the model. Global features considered in this article are the export and import operations, the exchange rate and the rate of tariff. In this article, a scenario analysis is performed to analyze two important factors of the global supply chain: force majeure factor and delivery delay. Results showed that improving the flexibility of production capacity is one of the important strategies that global supply chain managers should pursue. JEL Codes: F23, P45, C15, C63, E37, F17

scholarly journals The Supply Chain Disruption Framework Post COVID-19: A System Dynamics Model

2020 ◽  
Vol 55 (4) ◽  
pp. 511-534
Author(s):  
Deepankar Sinha ◽  
Virupaxi Bagodi ◽  
Debasri Dey
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Raw Materials ◽  
System Dynamics Model ◽  
Dynamics Model ◽  
Jel Codes ◽  
Force Majeure ◽  
Normal Goods ◽  
The Impact ◽  
Relevant Factors

The COVID pandemic seems to have raised the question, ‘whether existing supply chain (SC) disruption philosophies and strategies continue to remain valid?’. This article assesses the differences in the business scenarios pre-and post-COVID. The authors capture the mathematical and operational relationships amongst the relevant factors and propose a System Dynamics (SD) model to carry out the simulations. The approach considers the impact of the force majeure condition, that is, COVID period on individuals’ income, prices and demand of goods, cost of input and supply of finished goods. The results show that earnings may increase demand but, disruption in supplies of raw materials and finished products nullify the effect. On the other hand, even if flow returns to normal, reduced income affects normal goods businesses. JEL Codes: R41

scholarly journals Modeling waste management in a bioethanol supply chain: A system dynamics approach

DYNA ◽  
2016 ◽  
Vol 83 (195) ◽  
pp. 99-104 ◽  
Author(s):  
Danny Waldir Ibarra Vega
Keyword(s):  
Supply Chain ◽  
Waste Management ◽  
System Dynamics ◽  
Initial Conditions ◽  
Management Strategies ◽  
Production Capacity ◽  
Bioethanol Production ◽  
Waste Generation ◽  
Distribution Process ◽  
The Impact

This paper presents a model and simulations, which was built with a System Dynamics methodology applied to waste management in the bioethanol supply chain in Colombia. The stages of the supply chain used were cane planting, production and the distribution process. The residues taken into account were bagasse and vinasse. Moreover, four simulation scenarios were performed in which the values of variables modified management strategies. The installed bioethanol production capacity was increased to observe the evolution of increased waste generation evaluated. The initial conditions for the simulation were modified to represent a production of about 2,500,000 liters / day. This leads to an increased generation of vinasse of over 400 million liters on average in a month and around more than 1 million tones of bagasse. The results are used to estimate the impact of management strategies on the amount of waste generated in the production of bioethanol.

scholarly journals Mathematical model of the feedback between global supply chain disruption and COVID-19 dynamics

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Xingyu Li ◽  
Amin Ghadami ◽  
John M. Drake ◽  
Pejman Rohani ◽  
Bogdan I. Epureanu
Keyword(s):  
Mathematical Model ◽  
Supply Chain ◽  
Care Delivery ◽  
Global Supply Chain ◽  
Economic Losses ◽  
Chain Model ◽  
Supply Chain Disruption ◽  
Disease Networks ◽  
Resource Allocation Strategy ◽  
The Impact

AbstractThe pandemic of COVID-19 has become one of the greatest threats to human health, causing severe disruptions in the global supply chain, and compromising health care delivery worldwide. Although government authorities sought to contain the spread of SARS-CoV-2, by restricting travel and in-person activities, failure to deploy time-sensitive strategies in ramping-up of critical resource production exacerbated the outbreak. Here, we developed a mathematical model to analyze the effects of the interaction between supply chain disruption and infectious disease dynamics using coupled production and disease networks built on global data. Analysis of the supply chain model suggests that time-sensitive containment strategies could be created to balance objectives in pandemic control and economic losses, leading to a spatiotemporal separation of infection peaks that alleviates the societal impact of the disease. A lean resource allocation strategy can reduce the impact of supply chain shortages from 11.91 to 1.11% in North America. Our model highlights the importance of cross-sectoral coordination and region-wise collaboration to optimally contain a pandemic and provides a framework that could advance the containment and model-based decision making for future pandemics.

Moving toward a Global Supply Chain Operations and the Impact on International Competition

2012 ◽  
pp. 1626-1636
Author(s):  
Seyed-Mahmoud Aghazadeh
Keyword(s):  
United States ◽  
Supply Chain ◽  
Supply Chains ◽  
Global Economy ◽  
The United States ◽  
Global Supply Chain ◽  
Global Supply Chains ◽  
Domestic Firms ◽  
Foreign Products ◽  
The Impact

As the domestic businesses expand, many are making the choice to use foreign products, labor, and services to aid in their production. Global supply chains are minimizing the costs of the production process but are also creating vulnerabilities to home countries. As the global economy changes, the competitiveness between countries grows. Competitiveness can affect everything from a country’s economy to how a firm conducts international business. Addressing the need to find a method to increase the United States competitiveness in the world economy by improving the use of global supply chains would help to make domestic firms more successful in the global economy. Studying how companies position themselves abroad is important to providing insight into how to become more competitive. Worldwide companies are diversifying by moving more of their supply chain to international locations. This is providing them with many benefits such as better markets for products, lower costs, and more advanced technologies. As a result, the competitive strategy of companies is to increase production and decrease costs through the most efficient global supply chain. Maximizing the potential of domestic firms’ global supply chains is one of the most effective ways to increase U.S. competitiveness. If more big businesses in the United States are willing to participate on the global level, then the US will be able to improve their competitiveness.

Moving toward a Global Supply Chain Operations and the Impact on International Competition

2013 ◽  
pp. 466-476
Author(s):  
Seyed-Mahmoud Aghazadeh
Keyword(s):  
United States ◽  
Supply Chain ◽  
Supply Chains ◽  
Global Economy ◽  
The United States ◽  
Global Supply Chain ◽  
Global Supply Chains ◽  
Domestic Firms ◽  
Foreign Products ◽  
The Impact

As the domestic businesses expand, many are making the choice to use foreign products, labor, and services to aid in their production. Global supply chains are minimizing the costs of the production process but are also creating vulnerabilities to home countries. As the global economy changes, the competitiveness between countries grows. Competitiveness can affect everything from a country’s economy to how a firm conducts international business. Addressing the need to find a method to increase the United States competitiveness in the world economy by improving the use of global supply chains would help to make domestic firms more successful in the global economy. Studying how companies position themselves abroad is important to providing insight into how to become more competitive. Worldwide companies are diversifying by moving more of their supply chain to international locations. This is providing them with many benefits such as better markets for products, lower costs, and more advanced technologies. As a result, the competitive strategy of companies is to increase production and decrease costs through the most efficient global supply chain. Maximizing the potential of domestic firms’ global supply chains is one of the most effective ways to increase U.S. competitiveness. If more big businesses in the United States are willing to participate on the global level, then the US will be able to improve their competitiveness.

Understanding the relationships between global supply chain risk and supply chain resilience: the role of mitigating strategies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Juneho Um ◽  
Neungho Han
Keyword(s):  
Supply Chain ◽  
Global Supply Chain ◽  
Theoretical Development ◽  
Supply Chain Risk ◽  
Content Type ◽  
Supply Chain Resilience ◽  
Supply Chain Risks ◽  
The Impact ◽  
Practical Implications

Purpose This study aims to theoretically hypothesise and empirically explore the relationships amongst global supply chain risks, supply chain resilience and mitigating strategies. Design/methodology/approach The study adopts supply chain resilience as a dynamic capability and resilience capability as a mediating prerequisite in addressing supply chain risk in sourcing, manufacturing and delivery. The moderating role of diverse mitigating strategies is tested to enhance supply chain resilience. Data collected via survey was used for structural equation modelling and additional tests to explore appropriate mitigating strategies for differing risk environments. Findings Achieving better supply chain resilience capability plays an important mediating role between supply chain risks and resilience, while the relationships depend on the performance of seven mitigating strategies. Research limitations/implications The findings contribute to the theoretical development of risk management issues in global supply chains by suggesting the role of supply chain resilience capability. Practical implications The findings offer managerial guidance on how to mitigate the global supply chain risk through the appropriate practice of strategies to strengthen supply chain resilience in an uncertain environment. Originality/value This is the first empirical research examining the impact of mitigating strategies on supply chain resilience. The results provide practical implications for managing uncertain events and offering theoretical insight for future research in supply chain resilience.

System dynamics-based model for supply chain organizational collaboration

2020 ◽  
pp. 1-11
Author(s):  
Wenhan Xu ◽  
Hongguang Bo ◽  
Yinglian Chen
Keyword(s):  
Supply Chain ◽  
Standard Deviation ◽  
System Dynamics ◽  
Dispersion Coefficient ◽  
Current Model ◽  
Distribution Center ◽  
Market Demand ◽  
Average Value ◽  
Collaboration Model ◽  
The Impact

In order to explore the impact of the system-driven supply chain, collaborative operations, and organizational characteristics on supply chain operational performance, this paper based on the system dynamics method to simulate the established information collaborative supply chain model, analyze market demand data, inventory before and after the supply chain sharing The changes of inventory fluctuations in the supply chain and related calculations are compared with the simulation results under the current model to prove the importance of implementing information collaboration in the supply chain of a large retailer-led supply chain. The research in this paper shows that with the supply chain information collaboration model, the average value of the manufacturer’s order quantity has dropped by 30.4%. Affected by this, the dispersion coefficient has also dropped from 0.76 to 0.6, and the average number of orders in the distribution center has also dropped by 12.2%; With the supply chain information synergy model, the average value of the raw material inventory of manufacturers has dropped significantly, from 3400 in the current model to 2500 in the information synergy model, a decrease of 27%, the standard deviation has also decreased by 57%, and the dispersion coefficient has dropped from 0.98 to 0.50; The standard deviation rate of the inventory of the distribution center is 30%; from the perspective of the overall retail supply chain, the inventory has fallen by 14%, the standard deviation has fallen by 34%, and the dispersion coefficient has dropped from 0.76 in the current model to the information collaboration model. 0.6, it can be seen that the mode of supply chain information coordination has a great effect on reducing supply chain costs and improving supply chain efficiency.

scholarly journals At the Epicenter of COVID-19–the Tragic Failure of the Global Supply Chain for Medical Supplies

2020 ◽  
Vol 8 ◽  
Author(s):  
Sonu Bhaskar ◽  
Jeremy Tan ◽  
Marcel L. A. M. Bogers ◽  
Timo Minssen ◽  
Hishamuddin Badaruddin ◽  
...  
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Production Efficiency ◽  
New Technologies ◽  
Health Workers ◽  
Global Supply Chain ◽  
Governance System ◽  
Current Crisis ◽  
The Face ◽  
The Impact

The tragic failure of the global supply chain in the face of the current coronavirus outbreak has caused acute shortages of essential frontline medical devices and personal protective equipment, crushing fear among frontline health workers and causing fundamental concerns about the sustainability of the health system. Much more coordination, integration, and management of global supply chains will be needed to mitigate the impact of the pandemics. This article describes the pressing need to revisit the governance and resilience of the supply chains that amplified the crisis at pandemic scale. We propose a model that profiles critical stockpiles and improves production efficiency through new technologies such as advanced analytics and blockchain. A new governance system that supports intervention by public-health authorities during critical emergencies is central to our recommendation, both in the face of the current crisis and to be better prepared for potential future crises. These reinforcements offer the potential to minimize the compromise of our healthcare workers and health systems due to infection exposure and build capacity toward preparedness and action for a future outbreak.

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