scholarly journals Concept for a Supply Chain Digital Twin

Author(s):  
Sergey Yevgenievich Barykin ◽  
Andrey Aleksandrovich Bochkarev ◽  
Olga Vladimirovna Kalinina ◽  
Vladimir Konstantinovich Yadykin

There is currently a discussion going on in the scientific community about using digital twins and modeling to manage risks in the supply chains. This need for constructing digital twins is caused by the low reliability and stability of supply chains due to the faults in their operation. These faults are a result of risks in the supply chains which can be consolidated into two types. The first type is operational risks. These are the current risks of the supply chain itself caused by an uncer-tainty of supply and demand as well as by an obstructed flow of information along the supply chain. The second type is critical risks caused by force majeure. These risks disrupt the normal operation of the supply chain and critically reduce the most important performance indicators of the company such as annual income and profits. Risks happen due to natural or man-made causes such as fires and floods in the distribution centers or at production facilities, legal disputes with sup-pliers, strikes, terrorist attacks on logistics facilities and others. Dynamic simulation and analytical optimization are two dominant technologies for managing risks of the supply chains, which helps to increase their reliability and stability if failures occur. Through optimizing and simulating of the supply chains, companies can generate new information about the impact of failure and influence the supply chain and its performance by looking at various scenarios that simulate the locations of failures, the duration and recovery policies. An analysis of the literary sources shows that there is no single approach to build the concept for a supply chain digital twin. This article gives an overview of the literature according to this problem and offers the author's point of view on the concept for a supply chain digital twin.

2021 ◽  
Vol 12 (2) ◽  
pp. 127-137
Author(s):  
O. N. Rimskaya ◽  
I. V. Anokhov

Today digitalization increasingly affects the economy, including the transport industry. The consequence of this is the emergence of digital twins that allow modeling and predicting the behavior of both individual processes and enterprises as a whole.The aim of the article is to investigate the process of digitalization in the transport industry. The theoretical basis of the article was the universal organizational science of A. Bogdanov.The article offers a definition of information, and its classification in relation to the economy at three levels: applied information (technological information), information about algorithms of the owners of factors production behavior (behavioral information) and information, with which the impact on the owners of production factors and the real economy in general (directive information). The totality of these levels of information from the macroeconomic point of view forms an information economy, and from the microeconomic point of view – a digital twin of a particular subject of the real economy.It is proved that the digital economy is a subsystem of the information economy, differs in a binary way of presenting information and is maximally oriented to the management of the real economy.Information precedes all activity, so the real economy is a product of the information economy. Consequently, the technological division of labor is based on a prior informational division of labor. This theoretically allows us to judge the adequacy of the digital twin through the analysis of individual technological levels of the transport enterprise. This hypothesis was applied to the analysis of the Russian railway transport, which gave reason to consider this approach promising for use at macro- and micro-levels both.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Atif Saleem Butt

PurposeThe purpose of this paper is to explore the disruptions caused to supply chains by COIVD-19 as well as steps/countermeasures taken by firms to address such disruptions.Design/methodology/approachThis study employs 46 semi-structured interviews with senior managers of the three buying firms, four distribution centers and four supplying firms based in four countries (Pakistan, Sri Lanka, China and India).FindingsResults unveil that manufacturing firms are facing limited production and delays in procuring goods and services, while distribution centres are facing inventory shortages. Furthermore, supplying firms are facing increased lead times amid the COVID-19 outbreak. In addition, each affected entity has employed specific strategies to address these disruptions. For instance, manufacturing firms are refining their production schedules based on the inventory, getting better visibility to their suppliers’ performance and developing new inbound routes to meet the production challenges. They are also assessing the tier-1 supplier’s risk and activating the relationship with secondary suppliers to address the procurement issues. Second, distributors are modifying inventory policies to meet the inventory shortage. Finally, supplying firms are developing alternative outbound logistics to meet the growing demand.Research limitations/implicationsThere are some limitations to this study. First, the results of this study cannot be generalized to a wider population. Second, this study explores the interpretations of senior managers based in four Asian countries only.Originality/valueOur study contributes to the supply chain literature by exploring the disruptions caused by COVID-19 to the supply chain operations. It also contributes to theory and practice by articulating the strategies adopted by firms to address such disruptions. Firms can use the steps highlighted in this study to mitigate the impact of COVID-19 on the supply chain disruptions.


Logistics ◽  
2022 ◽  
Vol 6 (1) ◽  
pp. 3
Author(s):  
João M. Lopes ◽  
Sofia Gomes ◽  
Lassana Mané

The constraints imposed by the pandemic COVID-19 increased the risks of the disruption of supply chains, bringing new challenges to companies. These effects were felt more intensely in less-developed countries, which are highly dependent on imports of products and raw materials. This study aims to assess the impact of supply chain resilience in a less-developed country (Guinea-Bissau) using complex adaptive system theory. We used a qualitative methodology through multiple case studies. Semi-structured interviews were conducted with four companies. The semi-structured script contains questions about supply chain disruptions, vulnerabilities and resilience. The main results show that the companies in Guinea-Bissau, due to their dependence on the outside world and the absence of formal, larger and more diversified supply chains, suffered serious consequences with the disruption imposed by the pandemic. It was also concluded that the more resilient the supply chain, the fewer the impacts of crisis events and that the resilience of companies at this level depends on their obtaining competitive advantages over their competitors. The main practical implications of this study are the need to formalize the supply chain, diversify the supply of services and products of companies dependent on the exterior, adopt metrics that allow for the early detection of situations of supply chain disruption, effectively manage stocks and promote proactive crisis resolution strategies. Studies on the impact of resilience on supply chains in crises are scarce, especially on companies located in underdeveloped countries.


2021 ◽  
pp. 40-60
Author(s):  
A. P. Tyapukhin

The territorial approach is the basic approach to a region management. At the same time, the “territory” component is the basis of the logistics complex used in Supply Chain Management. In this regard, a need is to clarify and supplement the theory and methodology of the territorial approach to the management of both the region and the supply chains.The subject of this study is the relationship between the regional authorities and the focus enterprise of the supply chain regarding the development of the territories and resources of the region on a mutually beneficial basis.The research methods are methods of analysis and synthesis, induction and deduction, as well as classification, and the tools are binary matrices that provide for the joint use of two classification attributes of the object under study and their dichotomies.The results of this study are the management principles by the competitiveness and sustainability of the management object; classifications of approaches to the management by the region and supply chains; of territories from the point of view of the focus enterprise of the supply chain and the region; the management decisions in the interaction of regions with the links of supply chains; the sequence of the formation of supply chains and the development of territories and resources of the region on the basis of the territorial approach and the relationship between them.The obtained results allow to reduce the costs and time for the development of territories and resources of the region by reducing the lost profits of the supply chain links due to their rational placement and increasing sustainability by achieving a synergistic effect both by the region and by the supply chains.


2021 ◽  
Vol 9 (1) ◽  
pp. 15-31
Author(s):  
Ali Arishi ◽  
Krishna K Krishnan ◽  
Vatsal Maru

As COVID-19 pandemic spreads in different regions with varying intensity, supply chains (SC) need to utilize an effective mechanism to adjust spike in both supply and demand of resources, and need techniques to detect unexpected behavior in SC at an early stage. During COVID-19 pandemic, the demand of medical supplies and essential products increases unexpectedly while the availability of recourses and raw materials decreases significantly. As such, the questions of SC and society survivability were raised. Responding to this urgent demand quickly and predicting how it will vary as the pandemic progresses is a key modeling question. In this research, we take the initiative in addressing the impact of COVID-19 disruption on manufacturing SC performance overwhelmed by the unprecedented demands of urgent items by developing a digital twin model for the manufacturing SC. In this model, we combine system dynamic simulation and artificial intelligence to dynamically monitor SC performance and predict SC reaction patterns. The simulation modeling is used to study the disruption propagation in the manufacturing SC and the efficiency of the recovery policy. Then based on this model, we develop artificial neural network models to learn from disruptions and make an online prediction of potential risks. The developed digital twin model is aimed to operate in real-time for early identification of disruptions and the respective SC reaction patterns to increase SC visibility and resilience.


Author(s):  
Goran Milovanovic ◽  
◽  
Tamara Stankovic ◽  

Health crises have an impact on supply chains, mainly by disrupting their regular activities. In this research, the authors have analyzed the impact that the Covid-19 pandemic has made on business relationships between supply chain partners in the automotive industry and their suppliers, which are mostly from territories where the initial outbreak of the SARS COV 2 virus occurred. The analysis shows that in some cases, there is a strong dependency between the pandemic and production levels. Being dependent prevents supply chains from maintaining stability and causes system vulnerabilities. The authors conclude their work with a thesis on the pronounced impact of the current pandemic on automotive supply chain activities. For the analysis to be complete, it is necessary to monitor changes in production levels further, since data for the current year still does not provide a realistic insight into all the consequences at the supply chain level.


2020 ◽  
Vol 3 (2) ◽  
pp. 196-202
Author(s):  
Siti Amalia ◽  
Dio Caisar Darma ◽  
Siti Maria

At the beginning of the emergence of Covid-19, there was panic buying in Indonesia which caused an unusual situation in supply management. Although the handling of this epidemic has entered a "new normal", the availability of stocks of electronics, automotive, pharmaceuticals, food, and others is running low and out of control, so supply chain management is needed. The purpose of this article is to try to see the extent of the transformation in supply and demand in Indonesia. With this in-depth literature, the supply chain model is likely to transform globally, given that many companies are confused about management being unable to cope with drastic changes in the market. The demand patterns over the past period indicate a shift from offline to online storefronts. Even though it has now entered a transition to a new normal and shopping outlets are slowly opening up, online shopping or demand patterns are predicted to last a long time. Therefore, supply chain actors, especially farmers, logistics entrepreneurs, and shipping services, inevitably have to be able to quickly adapt to changing patterns in Indonesia. There is an imbalance between the demand and supply sides. Food supply chains tend to be unique in comparison to the supply chains of other products and services.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Atif Saleem Butt

PurposeThis study explores the countermeasures taken by retailers to mitigate the effects of COVID-19 on supply chain disruptions.Design/methodology/approachThis research uses a multiple case study approach and undertakes 36 semi-structured interviews with senior management of the four largest retailers of the United Arab Emirates. The respondents were designated at different positions such as Vice President, Director and Project Manager.FindingsResults reveal that retailers are employing six countermeasures to mitigate the effects of COVID-19 on supply chains. Particularly, retailers are securing required demand, preserving cash flows, redirecting inventory, adding capacity to their distribution centres, becoming more flexible with their direct or third-party logistics provider and finally widening delivery options for their suppliers to mitigate the impact of COVID-19.Research limitations/implicationsThis study has some limitations. First, the results of this study cannot be generalized to a broader population as it attempts to build an initial theory. Second, this study uses a cross-sectional approach to explore the countermeasures employed by retailing firms to mitigate the effects of COVID-19.Originality/valueA notable weakness in a supply chain disruption literature is an unfulfilled need for research examining the strategies employed by retailers to respond to/address the challenges posed by COVID-19. Our study fills this gap.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sindhuja P.N.

Purpose Information security is an essential element in all business activities. The damage to businesses from information security breaches has become pervasive. The scope of information security has widened as information has become a critical supply chain asset, making it more important to protect the organization’s data. Today’s global supply chains rely upon the speedy and robust dissemination of information among supply chain partners. Hence, processing of accurate supply chain information is quintessential to ensure the robustness and performance of supply chains. An effective information security management (ISM) is deemed to ensure the robustness of supply chains. The purpose of the paper is to examine the impact of information security initiatives on supply chain robustness and performance. Design/methodology/approach Based on extant literature, a research model was developed and validated using a questionnaire survey instrument administered among information systems/information technology managers. Data collected were analyzed using exploratory and confirmatory factor analysis. Further, to test the hypotheses and to fit the theoretical model, Structural equation modeling techniques were used. Findings Results of this study indicated that information security initiatives are positively associated with supply chain robustness and performance. These initiatives are likely to enhance the robustness and performance of the supply chains. Originality/value With the advancements in internet technologies and capabilities as well as considering the dynamic environment of supply chains, this study is relevant in terms of the capability that an organization needs to acquire with regards to ISM. Benefiting from the resource dependency theory, information security initiatives could be considered as a critical resource having an influence on the internal and external environment of supply chains.


2012 ◽  
pp. 1626-1636
Author(s):  
Seyed-Mahmoud Aghazadeh

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.


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