A quantitative analysis of simultaneous supply and demand disruptions on a multi-echelon supply chain

This research aimed to uncover how different features of simultaneous supply and demand disruptions impact the performance of a multi-echelon supply chain. A discrete event simulation model was developed in ARENA and a full factorial designed experiment was conducted to understand how different disruption characteristics affect key supply chain performance metrics. Historical data was obtained for a four-echelon supply chain owned by a single company using the guaranteed service model inventory policy. Results showed that the severity of a demand disruption had considerable impact on performance during the disruption period. Furthermore, disruptions that occurred further upstream in the supply chain were more likely to translate into a decrease in overall performance in the post-disruption period when compared to disruptions located elsewhere. It was also found that additional inventory can be expected to accumulate at a disrupted node which, in turn, could translate into inventory reductions immediately upstream of the disrupted node. © 2024 Inderscience Publishers. All rights reserved.