A Bi-Criteria Measure to Assess Supply Chain Network Performance for Critical Needs Under Capacity and Demand Disruptions

Abstract

In this paper, we develop a supply chain/logistics network model for critical needs in the case of disruptions. The objective is to minimize the total network costs, which are generalized costs that may include the monetary, risk, time, and social costs. The model assumes that disruptions may have an impact on both the network link capacities as well as on the product demands. Two different cases of disruption scenarios are considered. In the first case, we assume that the impacts of the disruptions are mild and that the demands can be met. In the second case, the demands cannot all be satisfied. For these two cases, we propose two individual performance measures. We then construct a bi-criteria measure to assess the supply chain network performance for critical needs. An algorithm is described which is applied to solve a spectrum of numerical examples in order to illustrate the new concepts.

Keywords: Supply Chains, Disruptions, Critical Needs, Network Vulnerability, Performance Measurement, Disaster Planning, Emergency Preparedness

JEL Classification: C61, D81, M11